A recent LendingTree survey found that one in four Americans rely on their fathers for financial advice. The majority of Americans do not feel comfortable discussing their finances outside of their family, and consult Dad first.
23% of respondents list Dad as the first stop for financial advice, followed by partners (19%), and Mom (17%). Only 14% said they would first ask a financial advisor.
Millennials are a bit more likely to rely on Dad for advice, with 54% saying they ask their father when they need financial advice, vs. 43% across all age groups.
80% of those surveyed learned more about money at home than they did at school and said they had wished they had learned more about personal finance at school.
Perhaps because financial courses are not taught in school and a majority of Americans feel uncomfortable discussing finances outside of the family, Americans rely more on Dad than anyone else, including a financial planner or financial advisor who would provide opportunities to manage or grow their wealth.
A problem could occur if Dad passes on any poor financial habits to his children. 49% of respondents consider their father to be a positive financial role model and 56% said their dad helped them develop good money habits, however that does leave a significant percentage of people who do not consider their father to be good financial role model.
64% of Americans turn to Dad for advice on buying a car, which can be problematic if the father does not understand the value of buying used. In The Next Millionaire Next Door by Thomas and Sarah Stanley (a dad and daughter), the authors posit that self-made millionaires are able to accumulate wealth on a modest salary because of important and specific budget choices. They understand how a new car’s value plummets as soon as it is driven off the lot, so they opt for used modest cars instead of the new status cars, which are more often driven by those who may have a higher salary but lower wealth accumulation.
Fathers also advise their children on a number of other financial matters, including budgeting (38%), career advice (37%), buying a house, (27%), retirement savings (23%), getting a credit card (20%), investing (19%), negotiating a salary (16%). It is wonderful that so many Americans feel they can turn to their parents for financial advice. However, there can be substantial value in obtaining different viewpoints, perspectives and money management strategies from a financial professional, in case the parent has a financial “blind spot”.
If you are interested in learning more about how we can create, grow, and manage your wealth, please contact us at 515-557-1860 or email@example.com. TABER Asset Management is a fiduciary, financial planning and investment management firm located in Des Moines, IA, serving clients from across the U.S.