In your household, who begins the conversation about finances and financial well-being?
According to a survey sponsored by the LA based Capital Group, mothers were more likely to start conversations about finances than fathers. 76 percent of mothers vs. 62 percent of fathers had brought up the importance of good credit with their children. 70 percent of mothers vs. 64 percent of fathers lead the discussion of the importance of saving early. 69 percent of mothers vs. 64 percent of fathers had brought up retirement preparation. Paying down debt was mentioned by 50 percent of mothers vs. 42 percent of fathers.
Despite the financial discussion being more often lead by mothers, fathers are still the primary investment decision makers, with 79 percent of fathers vs. 51 percent of mothers reporting themselves as the primary investment decision makers.
An interesting finding of the survey is that despite the parents’ agreement that these financial discussions with their children are important, 69 percent rate themselves as only “somewhat” successful in teaching their children about money. The survey did not go into depth on why they thought their financial discussions were only moderately helpful.
The five most important topics the parents discussed were:
1. Live within your means
2. Start saving early
3. Take advantage of the 401(k) employer matching contribution
4. Manage credit and avoid high interest debt
5. Budgeting based on percentage of income
Financial advisors may be able to help facilitate these discussions or provide advice for how to be successful in teaching these important financial concepts to your children. TABER Asset Management is a fiduciary, financial planning, and investment advisory firm located in Des Moines, Iowa that serves clients across the U.S. Please contact us at 515-557-1860 or email@example.com to inquire more about our services.