T. Rowe Price Parents, Kids & Money Survey

9TH ANNUAL PARENTS, KIDS & MONEY SURVEY

Detailed Results

2

Contents

Saving for kids’

education

Household Finances…………………………………………………………………..3

Household Debt………………………………………………………………………19

Savings………………………………………………………………………………..28

Emergency Fund……………………………………………………………………..32

Retirement Savings…………………………………………………………………..36

Parental Knowledge, Attitudes and Behavior………………………………...…..42

Financial Discussions………………………………………………………………..49

Teaching Kids About Finances……………………………………………………...60

Allowance……………………………………………………………………………..67

Kid Responses……………………………………………………………………….73

Respondent Profile…………………………………………………………………..86

Objective and Methodology…………………………………………………………90

HOUSEHOLD FINANCES

4

43%

3%

54%

0% 10% 20% 30% 40% 50% 60%

No

Yes, I use a roboadvisor

Yes, I have an advisor or planner

Financial Advisor

Q12. DO YOU USE A PAID FINANCIAL ADVISOR OR PLANNER TO HELP MANAGE YOUR INVESTMENTS AND/OR FINANCES?

T. Rowe Price 2017 Parents, Kids & Money Survey N=1,014 (Total respondents)

57% Have an Advisor

§  Men are more likely than women to have a financial advisor (75% vs. 37%)

§  Millennials (65%) are more likely than both Gen Xers (52%) and baby boomers (39%) to have a financial advisor

5

19%

40%

41%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Cash

Credit card

Debit card

Paying for Purchases

Q21. WHICH OF THE FOLLOWING DO YOU PRIMARILY USE TO PAY FOR PURCHASES?


6

22%

33%

45%

16%

47%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Cash

Credit card

Debit card

Men

Women

Paying for Purchases by Gender

Q21. WHICH OF THE FOLLOWING DO YOU PRIMARILY USE TO PAY FOR PURCHASES?

T. Rowe Price 2017 Parents, Kids & Money Survey N=1,014 (Total respondents) = Statistically significant - .05 level

§  Men are more likely than women to use a credit card, and less likely to use cash or a debit card

7

20%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

No

Yes

Household Budget

T. Rowe Price 2017 Parents, Kids & Money Survey N=1,014 (Total respondents); N=810 (Have a budget)

Q23. DO YOU HAVE A HOUSEHOLD BUDGET?

45%

55%

0% 10% 20% 30% 40% 50% 60%

I budget for expenses only

I include savings as a line item in my budget

Q24. WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU APPROACH YOUR BUDGET?

§  Men are more likely than women to have a budget (88% vs. 71%) and more likely to include savings as a line item (61% vs. 46%)

§  Millennials (84%) are more likely than both Gen Xers (77%) and baby boomers (68%) to have a household budget

8

4%

17%

79%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Not sure

No

Yes

Budget Surplus

Q22. IS THERE TYPICALLY MONEY LEFT OVER AFTER PAYING ALL THE MONTHLY EXPENSES?


§  Men are more likely than women to have money left over after paying all the monthly expenses (89% vs. 68%)

9

69%

12%

19%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No, I've never considered it

No, but I've considered it

Yes

Bankruptcy

T. Rowe Price 2017 Parents, Kids & Money Survey N=1,014 (Total respondents); N=194 (Declared bankruptcy)

Q15. HAVE YOU EVER DECLARED PERSONAL BANKRUPTCY?

31%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No

Yes

Q16. DO YOUR KID(S) KNOW THAT YOU ONCE DECLARED BANKRUPTCY?

§  Men are more likely than women to have declared bankruptcy (22% vs. 16%)

§  Parents who have declared bankruptcy are more likely than those who haven’t to have kids who don’t save any of the money they get (16% vs. 6%), spend money as soon as they get it (71% vs. 42%), and expect parents to buy whatever they want (72% vs. 56%)

§  Kids who are aware their parents declared bankruptcy are more likely than those who are unaware to say they are smart about money (68% vs. 30%)

10

16%

24%

20%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Keeping Financial Secrets

Q64. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS: I KEEP FINANCIAL SECRETS FROM MY SPOUSE/PARTNER?

T. Rowe Price 2017 Parents, Kids & Money Survey N=858 (Married)

40% Agree

§  Men are more likely than women to say they keep financial secrets from their spouse/partner (50% vs. 27%)

§  Keeping financial secrets decreases by generation (45% for millennials, 38% for Gen Xers, and 18% for baby boomers)

11

36%

39%

39%

41%

44%

45%

63%

65%

75%

77%

0% 20% 40% 60% 80% 100%

I’ve lost track of how much I spend monthly on subscriptions like Netflix, Spotify, and other subscription services

I don’t make enough money to cover what I spend

I hide purchases from my spouse so he/she doesn’t know how much I spend

Without credit cards I would not be able to cover my monthly expenses

My spouse and I don’t agree on how to budget for the household

I have a household budget, but I rarely look at it

I rarely carry cash anymore

When managing my finances, I always make sure that I pay myself first by including savings in the budget

I have taken measures to cut back spending in the last year

Following a budget has helped my financial situation

Parental Attitudes and Behaviors

Q25. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS? (DISPLAYING PERCENT THAT AGREE)


§  Men are more likely than women to not look at their budget (52% vs. 34%), need credit cards to cover monthly expenses (49% vs. 32%), lose track of monthly expenses (47% vs. 22%), and hide purchases from their spouse/partner (46% vs. 30%)

12

29%

18%

21%

32%

0% 5% 10% 15% 20% 25% 30% 35%

$300 or more

$200 to $299

$100 to $199

Less than $100

Amount Spent on Kid—Birthday


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON BIRTHDAY PRESENTS AND PARTIES?

13

28%

17%

25%

30%

0% 5% 10% 15% 20% 25% 30% 35%

$500 or more

$300 to $499

$100 to $299

Less than $100

Amount Spent on Kid—Holiday Presents


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON HOLIDAY PRESENTS?

14

33%

17%

19%

31%

0% 5% 10% 15% 20% 25% 30% 35%

$300 or more

$200 to $299

$100 to $199

Less than $100

Amount Spent on Kid—Back to School


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON BACK TO SCHOOL?

15

26%

28%

9%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$300 or more

$100 to $299

$50 to $99

Less than $50

Amount Spent on Kid—Extracurricular Activities


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON EXTRACURRICULAR ACTIVITIES?

16

32%

34%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$75 or more

$20 to $74

Less than $20

Amount Spent on Kid—Halloween


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON HALLOWEEN?

17

27%

29%

44%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

$200 or more

Less than $200

Nothing

Amount Spent on Kid—Summer Camp


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON SUMMER CAMP?

18

26%

26%

23%

25%

0% 5% 10% 15% 20% 25% 30%

More than $200

$51 to $200

$50 or less

Nothing

Amount Spent on Kid—Athletics


Q73. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON ATHLETICS?

HOUSEHOLD DEBT

20

12%

25%

25%

14%

15%

10%

0% 5% 10% 15% 20% 25% 30%

I have carried credit card debt for as long as I can remember

I have used credit cards regularly to finance things I can’t immediately afford

I have used credit cards occasionally to finance things I can’t immediately afford

I rarely carry a balance on my credit cards

I never carry a balance on my credit cards

I don't have credit cards

Use of Credit Cards

Q13. WHICH STATEMENT BEST CHARACTERIZES YOUR USE OF CREDIT CARD FINANCING?


§  Women are more likely than men to not have credit cards (15% vs. 5%)

21

14%

4%

11%

12%

12%

19%

23%

39%

41%

53%

0% 10% 20% 30% 40% 50% 60%

I don't have any debt

Other

Student loan (from kid's education)

Payday loan

Friend/relative debt

Medical debt

Student loan (from parent's education)

Car loan

Mortgage

Credit card debt

Types of Debt

Q14. WHICH OF FOLLOWING TYPES OF DEBT DO YOU HAVE? (CHECK ALL THAT APPLY)

Mean Types of Debt: 2.14


§  61% of parents have more than one type of debt, with a mean number of debt types at 2.14

§  4% of parents have student loan debt for both their own and their kids’ educations

§  Parents who have declared bankruptcy are more likely than those who haven’t to have a payday loan (22% vs. 10%)

22

18%

39%

23%

20%

0% 10% 20% 30% 40% 50%

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Perception of Credit Card Debt

Q64. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENT: EVERYBODY HAS CREDIT CARD DEBT?


57% Agree

§  Men are more likely than women to say that everybody has credit card debt (64% vs. 48%)

23

11%

20%

28%

41%

0% 10% 20% 30% 40% 50%

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Perception of Personal Debt

Q25. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENT: I HAVE MORE DEBT THAN MOST PEOPLE?


31% Agree

§  Men are more likely than women to say that they have more debt than most people (39% vs. 23%)

§  Millennials (37%) are more likely than both Gen Xers (29%) and baby boomers (18%) to say that they have more debt than most people

24

25%

21%

28%

26%

0% 5% 10% 15% 20% 25% 30%

More than 5 years

3-5 years

1-2 years

Less than a year

Carrying a Credit Card Balance

Q19. HOW LONG HAVE YOU BEEN CARRYING A BALANCE ON CREDIT CARDS?

T. Rowe Price 2017 Parents, Kids & Money Survey N=541 (Have credit card debt)

§  Women are more likely than men to be carrying credit card debt for more than five years (29% vs. 21%)

25

6%

8%

14%

20%

32%

19%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$20,000 or more

$15,000 to $19,999

$10,000 to $14,999

$5,000 to $9,999

$1,000 to $4,999

Less than $1,000

Amount of Debt—Credit Cards

T. Rowe Price 2017 Parents, Kids & Money Survey N=541 (Have credit card debt)

Q20. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL OWE) FOR YOUR CREDIT CARDS NOW?

§  A total of 53% of respondents have credit card debt, and of those, 48% have a balance of $5,000 or more

§  Parents who have $5,000 or more in credit card debt are more likely than those who don’t to have kids who spend money as soon as they get it (58% vs. 44%), expect parents to buy them whatever they want (65% vs. 57%), say parents confuse them when talking about money (67% vs. 51%), and say what parents say about money is different than what they hear at school (65% vs. 53%)

§  Parents who have declared bankruptcy are more likely than those who haven’t to have $5,000 or more in credit card debt (68% vs. 42%)

26

27%

8%

20%

22%

12%

10%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$40,000 or more

$30,000 to $39,999

$20,000 to $29,999

$10,000 to $19,999

$5,000 to $9,999

Less than $5,000

Amount of Debt—Student Loans (Parents)

T. Rowe Price 2017 Parents, Kids & Money Survey N=233 (Have student loans for parents’ education)

Q17. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL OWE) FOR YOUR STUDENT LOANS (FOR YOUR OR YOUR SPOUSE’S EDUCATION)?

27

19%

13%

24%

19%

16%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$20,000 or more

$15,000 to $19,999

$10,000 to $14,999

$5,000 to $9,999

$1,000 to $4,999

Less than $1,000

Amount of Debt—Student Loans (Kids)

T. Rowe Price 2017 Parents, Kids & Money Survey N=110 (Have student loans for kids’ education)

Q18. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL OWE) FOR YOUR STUDENT LOANS (FOR YOUR KIDS’ EDUCATION)?

SAVINGS

29

13%

49%

49%

52%

53%

0% 10% 20% 30% 40% 50% 60%

None of the above

Money saved for other goals

Money saved for retirement

An emergency fund to cover unexpected expenses

Money saved for kids’ college education

Savings Accounts

Q26. WHICH OF FOLLOWING DO YOU HAVE? (CHECK ALL THAT APPLY)

Total Types of Savings None: 13% One: 26% Two: 22% Three: 23% Four: 16%


§  A total of 39% of parents have three or more types of savings

§  Parents who have three or more types of savings are more likely to have kids who discuss money with them (83% vs. 66%) and less likely to have kids who spend money as soon as they get it (40% vs. 52%) or lie about their spending (34% vs. 43%)

30

Savings Accounts—By Parent Gender and Age

Q26. WHICH OF FOLLOWING DO YOU HAVE? (CHECK ALL THAT APPLY)

Gender Age

Men Women Millennial (A)

Gen X (B)

Boomer (C)

Money saved for kids’ college education 65% 38% 57% 51% 43%

Money saved for retirement 50% 48% 42% 54% (A) 64% (A)

Emergency fund 56% 47% 52% 52% 54%

Money saved for other goals 54% 43% 50% 47% 45%

None of the above 5% 23% 14% 13% 14%


Bold font signifies statistical significance

31

32%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Saving for retirement

Saving for kids' college education

Family Saving Priority

Q28. WHICH OF THE FOLLOWING IS THE HIGHER PRIORITY FOR YOU AND YOUR FAMILY?


Gender Age

Men Women Millennial (A)

Gen X (B)

Boomer (C)

Saving for kids’ college education 75% 60% 76% (B,C) 62% 61%

Saving for retirement 25% 40% 24% 38% (A) 39% (A)

EMERGENCY FUND

33

14%

9%

17%

6%

9%

20%

14%

10%

0% 5% 10% 15% 20% 25%

More than twelve months

Seven to 12 months

Six months

Five months

Four months

Three months

Two months

One month or less

Size of Emergency Fund

T. Rowe Price 2017 Parents, Kids & Money Survey N=526 (Have emergency fund)

Q29. FOR HOW MANY MONTHS WOULD YOUR EMERGENCY FUND COVER YOUR FAMILY’S EXPENSES?

34

22%

78%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

No, I do not maintain a separate account for my emergency fund

Yes, I maintain a separate account for my emergency fund

Separate Emergency Fund Account


Q30. DO YOU MAINTAIN A SEPARATE ACCOUNT FOR YOUR EMERGENCY FUND OR IS IT KEPT IN AN ACCOUNT WITH OTHER FUNDS?

35

17% 1%

14% 20%

26% 27%

35%

5% 9%

21% 21% 22%

24% 28%

31%

0% 10% 20% 30% 40%

Nothing Other

To cover expenses while unemployed To pay taxes

Car purchase or repair Health care costs

Home repair/renovation

Wedding Down payment on a home

Childcare/daycare Pay off debt

Day-to-day expenses Holiday spending

Vacation Kids' education

Using the Emergency Fund


Q31. WHAT TYPES OF THINGS HAVE YOU USED EMERGENCY FUND MONEY FOR IN THE PAST TWO YEARS? (CHECK ALL THAT APPLY)

67% have used emergency funds for non-emergencies, and 45% have used emergency funds for more than one non-emergency

Across categories, men are more likely than women to tap in to their emergency fund

Emergencies

Non-emergencies

RETIREMENT SAVINGS

37

2%

17%

23%

26%

29%

29%

50%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Taxable investment account

Roth IRA

Certificate of deposit (CD)

Annuity or life insurance policy

Traditional IRA

Regular savings account

401(k) plan

Retirement Accounts

T. Rowe Price 2017 Parents, Kids & Money Survey N=495 (Have retirement savings)

Q32. WHAT TYPES OF ACCOUNTS DO YOU HAVE FOR YOUR RETIREMENT SAVINGS? (CHECK ALL THAT APPLY)

Total # of Accounts

One: 33% Two: 26% Three: 21% Four+: 20%

Mean: 2.41

38

28%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No

Yes

Mixed Retirement Accounts

T. Rowe Price 2016 Parents, Kids & Money Survey N=276 (Have regular savings or taxable investment accounts for retirement savings)

Q33. DO THE REGULAR SAVINGS OR TAXABLE INVESTMENT ACCOUNTS YOU USE FOR RETIREMENT SAVINGS ALSO HAVE MONEY THAT IS NOT GOING TO BE USED FOR RETIREMENT?

§  Men are more likely than women to mingle money in their accounts (76% vs. 65%)

39

4%

14%

26%

56%

0% 10% 20% 30% 40% 50% 60%

Five times or more

Two to four times

Once

Never

T. Rowe Price 2016 Parents, Kids & Money Survey N=276 (Have regular savings or taxable investment accounts for retirement savings)

Q34. HOW MANY TIMES HAVE YOU TAKEN MONEY OUT OF YOUR RETIREMENT SAVINGS IN THE PAST TWO YEARS?

Using Money From Retirement Accounts

§  Men are more likely than women to have taken money out of their retirement savings (49% vs. 38%)

§  Millennials (62%) are more likely than both Gen Xers (33%) and baby boomers (29%) to have taken money out of their retirement savings

§  Those who have declared bankruptcy (74% vs. 37%) and those who have more than $5,000 in credit card debt (62% vs. 37%) are more likely to have taken money out of retirement savings

40

2% 18%

19% 22% 22%

26%

12% 13% 13%

17% 18%

21% 26%

33% 35%

0% 10% 20% 30% 40%

Other To cover expenses while

To pay taxes Car purchase or repair

Health care costs Home repair/renovation

Wedding Down payment on a home Replenish emergency fund

Holiday spending Childcare/daycare

Day-to-day expenses Vacation

Kids' education Pay off debt

Using Money From Retirement Accounts

T. Rowe Price 2016 Parents, Kids & Money Survey N=216 (Have taken money out of retirement savings)

Q35. WHICH OF THE FOLLOWING THINGS HAVE YOU PAID FOR WITH MONEY TAKEN FROM RETIREMENT SAVINGS IN THE PAST TWO YEARS? (CHECK ALL THAT APPLY)

83% have used retirement funds for non-emergencies, and 47% for more than one non-emergency

Emergencies

Non-emergencies

41

20%

35%

26%

19%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Anxiety About Saving for Retirement

Q45. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENT: CONVERSATIONS ABOUT SAVING FOR RETIREMENT USUALLY FILL ME WITH A LOT OF ANXIETY?


55% Agree

PARENTAL KNOWLEDGE, ATTITUDES, AND BEHAVIORS

43

49%

69%

70%

74%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Investing

Managing expenses

Budgeting

Money

Parents’ Financial Knowledge


Q58. OVERALL, HOW KNOWLEDGEABLE ARE YOU ABOUT EACH OF THE FOLLOWING? (FIVE POINT SCALE – DISPLAYING VERY OR EXTREMELY)

§  For each topic, men are more likely than women to say they are knowledgeable

44

39%

47%

50%

55%

59%

0% 10% 20% 30% 40% 50% 60% 70%

I have borrowed from my kids’ “piggy bank” without paying them back

I have gone into debt to pay for something my kids wanted

I sometimes feel ashamed that I’m not providing enough for my kids

I spend too much money on my kids for things they don’t really need

I worry that I spoil my kids

Parental Attitudes and Behaviors

Q62 AND Q64. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS? (DISPLAYING PERCENT THAT AGREE)


45

28%

36%

45%

52%

53%

48%

56%

54%

58%

64%

0% 10% 20% 30% 40% 50% 60% 70%

I have borrowed from my kids’ “piggy bank” without paying them back

I have gone into debt to pay for something my kids wanted

I sometimes feel ashamed that I’m not providing enough for my kids

I spend too much money on my kids for things they don’t really need

I worry that I spoil my kids

Men Women

Parental Attitudes and Behaviors by Parent Gender

Q62 AND Q64. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS? (DISPLAYING PERCENT THAT AGREE)


46

15%

16%

16%

20%

26%

27%

54%

0% 10% 20% 30% 40% 50% 60%

None of the above

Told my kids we have more money than we really do

Used money my kids have received as gifts to buy something for myself

Showed financial statements to my kids

Told my kids we have less money than we really do

Told my kids we can’t afford things when we really can

Used money as incentive for good grades or good behavior

Parental Behaviors


Q52. WHICH OF THE FOLLOWING THINGS HAVE YOU DONE? (CHECK ALL THAT APPLY)

§  85% of parents have done at least one of the listed behaviors

§  Millennials are more likely than older generations to misrepresent the household financial status

47

12%

10%

16%

20%

24%

28%

34%

37%

37%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

None of the above

Roboadvisor

Books or other materials by celebrity spokespeople

Social media

Financial news channels

Parents

Friends

Traditional financial advisor

Financial websites or apps

Google/my own research

Financial Resources


Q59. WHEN IT COMES TO FINANCIAL MATTERS, WHICH OF THE FOLLOWING DO YOU CONSULT? (CHECK ALL THAT APPLY)

§  In general, men and millennials are more likely to consult sources when it comes to financial matters

48

Parents Knowledge of Saving and Investing


42%

43%

51%

55%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Stocks are generally less risky investments than bonds

A 50 year old shouldn’t put any of their retirement money in stocks because stocks can lose money

Having an emergency fund to cover one or two months' living expenses is sufficient

If I save 6% of my income toward retirement each year, I’ll have enough money to comfortably retire at age 65

What investments you choose (e.g., what stock, bond, or mutual fund) matters more than how much money you invest

Q46. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS IS TRUE OR FALSE (DISPLAYING PERCENT SAYING TRUE)

§  Men are more likely than women to say saving 6% a year is enough for retirement (62% vs. 47%), an emergency fund lasting one to two months is sufficient (55% vs. 46%), and stocks are less risky than bonds (49% vs. 35%)

FINANCIAL DISCUSSIONS

50

3%

11%

9%

28%

31%

18%

0% 5% 10% 15% 20% 25% 30% 35%

Once a day or more

A few times a week

Once a week

A few times a month

Once a month or less

Never

Frequency of Financial Discussions


Q47. OVERALL, HOW OFTEN DO YOU DISCUSS ANY FINANCIAL TOPICS (E.G., THE IMPORTANCE OF SAVING AND SPENDING WISELY, SETTING FINANCIAL GOALS, BUDGETING, ETC.) WITH YOUR KIDS?

§  Parents who discuss financial topics with their kids at least once a week are more likely than those that do not to have kids who say they are smart about money (64% vs. 41%)

§  Men are more likely than women to say more than once a week or more (26% vs. 19%)

51

12%

35%

53%

0% 10% 20% 30% 40% 50% 60%

I set aside time to specifically discuss financial topics

The kids usually come to me with a question

I bring things up as they occur

Types of Financial Discussions

T. Rowe Price 2017 Parents, Kids & Money Survey N=828 (Have financial discussions with kids)

Q48. WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU DISCUSS FINANCIAL TOPICS WITH YOUR KIDS?

§  Women are more likely than men to bring things up as they occur (68% vs. 42%) and less likely to have kids come to them with a question (21% vs. 46%)

§  Millennials (48%) are more likely than both Gen Xers (26%) and baby boomers (7%) to wait for kids to come to them with questions

52

42%

61%

0% 10% 20% 30% 40% 50% 60% 70%

My kids are too young to talk to about money and finances

I generally only talk to my kids about money when they ask about it

Financial Conversations



53

10%

15%

24%

20%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Extremely reluctant

Very reluctant

Somewhat reluctant

Not very reluctant

Not at all reluctant

Reluctance to Discuss Financial Matters


Q49. HOW RELUCTANT ARE YOU TO DISCUSS FINANCIAL MATTERS WITH YOUR KIDS?

§  69% of parents have some reluctance to discussing financial matters with their kids

§  Parents who have declared bankruptcy are more likely than those who haven’t to be reluctant to talk to their kids about money (44% vs. 20%)

§  Parents who have more than $5,000 in credit card debt are more likely than those who don’t to be reluctant to talk to their kids about money (35% vs. 21%)

54

16%

20%

22%

24%

31%

34%

36%

41%

54%

28%

31%

34%

37%

43%

43%

41%

44%

34%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Market volatility

Digital payment methods like PayPal and Venmo

Not talking about money in public

The value of long-term investing

Giving to charity

Setting financial goals

Maintaining a budget

How to earn money

The importance of saving

Frequently

Occasionally

Importance of Financial Discussions


Q50. HOW OFTEN DO YOU DISCUSS EACH OF THE FOLLOWING WITH YOUR KIDS? (FOUR POINT SCALE – DISPLAYING FREQUENTLY OR OCCASIONALLY)

55

32%

33%

35%

36%

38%

38%

40%

0% 10% 20% 30% 40% 50%

Politics

Terrorism

Family finances

Death

Drugs

Bullying

Sex

Uncomfortable Discussions


Q51. HOW UNCOMFORTABLE ARE YOU DISCUSSING EACH OF THE FOLLOWING WITH YOUR KIDS? (FIVE POINT SCALE – DISPLAYING VERY OR EXTREMELY)

§  Across all topics, millennials are more likely than Gen Xers and baby boomers to be uncomfortable having discussions with their kids

56

26%

28%

46%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

No difference

Girls

Boys

Kids Asking Questions

T. Rowe Price 2017 Parents, Kids & Money Survey N=620 (Have boys and girls)

Q54. BASED ON YOUR EXPERIENCE, WHO ASKS ABOUT MONEY MORE?

§  Men are more likely than women to say boys ask more about money (57% vs. 28%)

57

35%

25%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

No difference

Girls

Boys

Talking to Boys and Girls

Q55. DO YOU FIND THAT YOU SPEND MORE TIME TALKING ABOUT MONEY WITH YOUR BOY(S) OR GIRL(S)?

T. Rowe Price 2017 Parents, Kids & Money Survey N=620 (Have boys and girls)

§  Men are more likely than women to spend more time talking to boys about money (52% vs. 23%)

58

Talking to Boys and Girls

T. Rowe Price 2017 Parents, Kids & Money Survey N=404 (Talk more to boys or girls)

Q56. WHY DO YOU TALK MORE WITH YOUR [BOY(S) OR GIRL(S)]? (CHECK ALL THAT APPLY)

32%

25%

38%

33%

57%

50%

16%

26%

45%

25%

57%

53%

0% 10% 20% 30% 40% 50% 60%

They play on financial games or apps more

They are more likely to have more money to manage

They are older

They need more help with money

They seem more interested

They ask more questions

Girls Boys

Talk More to:

= Statistically significant - .05 level

§  Parents who talk with boys about finances more than girls are more likely to say boys need help with money and they play more financial games

59

48%

51%

67%

83%

0% 20% 40% 60% 80% 100%

I often miss opportunities to talk to my kids about money and finances

I don’t always know the best way to talk to my kids about financial topics

Opportunities to talk to my kids about money and finances come up almost every day

The conversations I have with my kids about finances make a difference

Attitudes About Financial Discussions



§  Men are more likely than women to say they don’t always know the best way to talk to kids about financial topics (57% vs. 44%) and they often miss opportunities (54% vs. 41%)

§  Millennials are more likely than Gen Xers and baby boomers to say they don’t always know the best way to talk to kids about financial topics (56% vs. 48% vs. 38%)

TEACHING KIDS ABOUT FINANCES

61

10%

16%

18%

20%

31%

41%

55%

0% 10% 20% 30% 40% 50% 60%

None of the above

Investment account

Credit card

Checking account

Online/gaming account

Piggy bank

Savings account

Kids’ Finances

Q60. WHICH OF THE FOLLOWING DO YOUR KIDS HAVE? (CHECK ALL THAT APPLY)


62

2%

41%

57%

0% 10% 20% 30% 40% 50% 60%

Other

My kid does

I do

Paying Kids’ Credit Card Bill

Q61. WHO PAYS YOUR KID’S CREDIT CARD BILL

T. Rowe Price 2017 Parents, Kids & Money Survey N=180 (Kid has credit card)

63

6%

2%

32%

34%

37%

41%

41%

45%

47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

None of the above

Other

Figuring out the amount of sales tax you pay

Discussing why we can’t take a bigger vacation

Figuring out how much tip to leave at a restaurant

Discussing the cost of college

Going into a physical bank

Figuring out how much you get off on sales

Back-to-school shopping on a budget

Teaching Moments


Q53. WHICH OF THE FOLLOWING HAVE YOU USED AS AN OPPORTUNITY TO TEACH YOUR KIDS ABOUT MONEY? (CHECK ALL THAT APPLY)

§  Women are more likely than men to say figuring out how much to tip (41% vs. 35%), figuring out how much you get off on sales (53% vs. 38%), and back-to-school shopping on a budget (54% vs. 41%)

64

6%

24%

33%

63%

65%

0% 10% 20% 30% 40% 50% 60% 70%

None of the above

Manage their own accounts

Decide what charities to donate to

Decide what they spend their own money on

Decide what to save their money for

Allowing Kids to Manage Their Own Finances


Q63. WHICH OF THE FOLLOWING DO YOU ALLOW YOUR KIDS TO DO ON THEIR OWN? (CHECK ALL THAT APPLY)

§  A total of 44% of parents let their kids decide what to save their own money for AND what to spend their own money on

65

55%

69%

0% 20% 40% 60% 80%

I have a hard time making my kids understand the value of a dollar

I’ve tried various ways to get my kids to save their money instead of spending it all right away to no avail

Teaching Kids About Money



66

49%

54%

56%

68%

72%

76%

79%

0% 20% 40% 60% 80% 100%

When my kids receive money as a gift, I decide what to do with the money

The schools do a good job of teaching kids about money

I let my kids make bad financial decisions so they can learn from their mistakes

I let my kids manage their own money

I would be interested in taking a course that teaches financial basics

I would enroll my kids in a course about money and finances for kids

I keep a pretty close eye on my kids’ money and what they’re doing with it

Letting Kids Manage Their Own Money

Q62 & Q64. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS? (DISPLAYING PERCENT THAT AGREE)


ALLOWANCE

68

34%

11%

55%

0% 10% 20% 30% 40% 50% 60%

I don’t give allowance

I give allowance without any requirements

I give allowance, but kids have to earn it

Allowance Approach


Q74. WHICH OF THE FOLLOWING BEST DESCRIBES YOUR APPROACH TO ALLOWANCE?

69

11%

18%

17%

55%

0% 10% 20% 30% 40% 50% 60%

$51 or more

$21 to $50

$11 to $20

$10 or less

Amount of Allowance

Q76. REGARDLESS OF HOW OFTEN YOU GIVE ALLOWANCE, ON AVERAGE, HOW MUCH DO YOU GIVE PER WEEK?

T. Rowe Price 2017 Parents, Kids & Money Survey N=669 (Give an allowance)

70

8%

13%

8%

19%

19%

20%

14%

0% 5% 10% 15% 20% 25%

11 or older

10

9

8

7

6

5 or younger

Age Allowance Begins

Q77. HOW OLD WERE YOUR KIDS WHEN YOU STARTED GIVING ALLOWANCE?


71

56%

66%

0% 10% 20% 30% 40% 50% 60% 70%

My kids usually spend most of their allowance money right away

I often give my kids additional money outside their allowance

Allowance



§  Men are more likely than women to give kids money outside their allowance (71% vs. 60%), and their kids usually spend their allowance right away (64% vs. 46%)

72

Allowance Trending PERCENT OF PARENTS WHO GIVE ALLOWANCE

55%

79% 70%

47% 48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2017 2016 2015 2013 2011

AVERAGE ALLOWANCE PER WEEK

55%

17%

18%

11%

61%

18%

16%

4%

50%

23%

18%

9%

68%

18%

12%

2%

$10 or less

$11–$20

$21–$50

$51 or more

2017

2016

2015

2013

T. Rowe Price 2017 Parents, Kids & Money Survey 2017 N=1,104 (Total respondents) 2016 N=1,086 (Total respondents) 2015 N=1,000 (Total respondents) 2013 N=1,014 (Total respondents) 2011 N=1,008(Total respondents)

2017 N=669 (Give an allowance) 2016 N=855 (Give an allowance) 2015 N=703 (Give an allowance) 2013 N=472 (Give an allowance)

KIDS RESPONSES

74

15%

32%

42%

10%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Extremely

Very

Somewhat

Not very

Not at all

Kids’ Knowledge of Money


Q83. OVERALL, HOW SMART ARE YOU ABOUT MONEY?

§  Boys are more likely than girls to say very/extremely (50% vs. 41%)

75

10%

90%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

No

Yes

Kids’ Savings Habits


Q84. DO YOU HAVE ANY MONEY SAVED?

76

29%

22%

21%

14%

14%

0% 5% 10% 15% 20% 25% 30% 35%

$500 or more

$200-$499

$100-$199

$50-$99

Less than $50


T. Rowe Price 2017 Parents, Kids & Money Survey N=917 (Have money saved)

Q85. ABOUT HOW MUCH DO YOU HAVE SAVED?

77

2%

12%

50%

63%

0% 10% 20% 30% 40% 50% 60% 70%

Other

My parents have it

In a bank

At my house


T. Rowe Price 2017 Parents, Kids & Money Survey N=917 (Have money saved)

Q86. WHERE DO YOU KEEP THE MONEY YOU HAVE SAVED? (CHECK ALL THAT APPLY)

78

8%

46%

36%

11%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

I don't save anything

I save some of it

I save most of it

I save all of it



Q87. OF ALL THE MONEY YOU GET, HOW MUCH DO YOU SAVE?

79

23%

50%

22%

5%

0% 10% 20% 30% 40% 50% 60%

Frequently

Occasionally

Rarely

Never

Frequency of Financial Conversations


Q90. HOW OFTEN DO YOU TALK WITH YOUR PARENTS ABOUT MONEY AND FINANCES?

§  Kids whose parents let them decide how to manage their money are more likely than those whose parents don’t let them decide to have occasional/frequent conversations with their parents (76% vs. 70%)

80

15%

17%

26%

26%

41%

49%

0% 10% 20% 30% 40% 50% 60%

None of the above

Friends/other kids

Aunts/uncles/cousins

Brothers and sisters

Teachers

Grandparents

Learning About Money From Others


Q91. WHO ELSE BESIDES YOUR PARENTS TALKS TO YOU OR TEACHES YOU ABOUT MONEY AND FINANCES? (CHECK ALL THAT APPLY)

§  Kids whose parents let them decide how to manage their money are more likely than those whose parents don’t let them decide to learn from grandparents (55% vs. 44%), teachers (45% vs. 37%), and other family members (32% vs. 22%)

81

Kid Attitudes and Perceptions


35%

37%

51%

52%

88%

0% 20% 40% 60% 80% 100%

My parents are uncomfortable talking to me about money

My parents fight about money

I play a lot of games that have money involved

My friends and I talk about money a lot

My parents set a good example when it comes to how to save and spend money


82

1%

22%

11%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Not sure

No

Yes, and I don't have to earn it

Yes, but I have to earn it

Allowance


Q93. DO YOU GET AN ALLOWANCE?

83

12%

19%

15%

53%

0% 10% 20% 30% 40% 50% 60%

$51 or more

$21 to $50

$11 to $20

$10 or less

Amount of Allowance

Q95. ON AVERAGE, HOW MUCH ALLOWANCE DO YOU GET PER WEEK?

T. Rowe Price 2017 Parents, Kids & Money Survey N=782 (Receive an allowance)

84

Money Management


36%

48%

54%

55%

77%

86%

89%

0% 20% 40% 60% 80% 100%

My parents have borrowed from my “piggy bank” without paying me back

I usually spend money as soon as I get it

Sometimes what my parents tell me about money is different than what I’ve heard at school

My parents sometimes confuse me when they talk about money

My parents let me manage my own money

My parents are really good with money

It’s important to save money for emergencies


§  Kids whose parents let them decide how to manage their money are less likely than those whose parents don’t let them decide to spend their money as soon as they get it (40% vs. 53%)

§  Parents who have declared bankruptcy are more likely than those who haven’t to have kids who say parents confuse them when talking about money (76% vs. 51%) and that what their parents tell them about money is sometimes different than what they hear at school (70% vs. 53%)

85

29%

24%

47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Not sure

Their retirement

My college

Perceived Savings Priorities


Q100. DO YOU THINK IT’S MORE IMPORTANT FOR YOUR PARENTS TO SAVE FOR THEIR RETIREMENT OR YOUR COLLEGE?

RESPONDENT PROFILE

87

50% 50%

Respondent Profile

31%

20%

24%

25%

South

Northeast

West

Midwest

Q2. REGION Q1. AGE Q3. GENDER

Men Women

Q5. HOUSE HOLD INCOME

82%

10%

5%

3%

1%

Married

Single

Separated/Divorced

Married (Same sex)

Widow/Widower

Q4. MARITAL STATUS

35%

55%

10%

<35

35–50

51+

23%

49%

28%

<$50K

$50K–$99,999

$100K+

71%

14%

13%

5%

2%

White/Caucasian

Hispanic/Latino

Black/African American

Asian

Native American

Q6. RACE/ETHNICITY (Check all that apply)


88

Respondent Profile

Q7. EDUCATION LEVEL

65%

16%

10%

5%

4%

2%

1%

Employed full-time

Employed part-time

Stay at home parent

Self-employed

Unemployed

Retired

Student

Q8. EMPLOYMENT STATUS (Check all that apply)

1%

10%

25%

11%

31%

22%

< HS graduate

HS graduate

Some college

Assoc. degree

Bachelor's degree

Graduate degree

21%

54%

19%

7%

1

2

3

4 +

Q9. # KIDS IN HH

53% 47%

Q11. KID GENDER

Boys Girls

Q12. KID AGE

14%

11%

16%

12%

15%

19%

13%

8

9

10

11

12

13

14


89

Respondent Profile

24%

57%

15%

4%

1%

None

One

Two

Three

Four +

# BOYS IN HOUSEHOLD KID GENDER MIX

15%

24%

61%

Girls only

Boys only

Boys and girls

# GIRLS IN HOUSEHOLD

15%

60%

21%

3%

1%

None

One

Two

Three

Four +


81%

18%

1%

None

One

Two +

# KIDS 8-14 IN HH # KIDS < 8 IN HH

55%

33%

10%

2%

None

One

Two

Three+

# KIDS > 14 IN HH

68%

28%

4%

One

Two

Three+

OBJECTIVE AND METHODOLOGY

91

Objective and Methodology

Objective

§  To understand the basic financial knowledge, attitudes, and behaviors of both parents of children ages 8-14 and their children ages 8-14.

Methodology

§  T. Rowe Price commissioned an online survey of parents of children ages 8-14 and their children ages 8-14.

§  The survey was fielded from January 18, 2017, through January 26, 2017, with parent quotas of approximately 50% men and 50% women.

§  A total of 1,014 parents and children ages 8-14 in the U.S. participated; the sampling error for a sample of 1,014 is +/- 3.1% at the 95% confidence interval.

§  The survey was fielded through Research Now.

T. Rowe Price 2017 Parents, Kids & Money Survey

T. Rowe Price Parents, Kids & Money Survey

Business

Transcript of T. Rowe Price Parents, Kids & Money Survey