Most parents and grandparents believe today’s children are less prepared to manage money as adults than they were at the same age, according to a new survey by wealth management firm Wealth Enhancement.
Fifty-three percent of respondents believe children are less prepared to manage money than they were growing up, according to the survey. Grandparents and baby boomers were the most likely to view today’s youth as unprepared, with millennials the least likely.
As far as what to teach, more than half (56%) said the most difficult lesson was how to avoid impulse purchases and overspending, followed closely by budgeting and managing everyday spending (52%), and understanding how money is earned and the value of work (50%).
Most parents (68%) and grandparents (58%) said they offer their children an allowance. Respondents generally believe the proper age range to start an allowance is from 5 to 12, with 8 being the most common age. Parents said $21 per week on average is a fair allowance amount, while grandparents said $15.
In related news, the ABA Foundation offers financial education programs and resources for bankers to help them strengthen the financial well-being of their communities.
