Parents Teach Piggy-Bank Saving & Basic Budgeting to Their Children, but Stop Short of Important Lessons in Credit & Saving f...
July 26 2016 - 12:40PM
Business Wire
U.S. Bank leads national efforts to break the cycle and get
students, parents talking about money
Students look to their parents for guidance on personal finance,
however parents aren't comfortable teaching them about important
topics such as credit and saving for the future, according to
results of the inaugural 2016 U.S. Bank Parent Financial Education
Survey. The survey examines the attitudes and philosophies around
financial education among parents of 18- to 24-year-old college
students.
“Everything kids know about money, they learn from their
parents,” said Robyn Gilson, U.S. Bank Coach for Student Financial
Education. “The problem is, many parents are not confident teaching
beyond piggy bank saving and basic budgeting -- missing important
topics like credit and saving for the future.”
Most parents are comfortable teaching about saving in general
(77 percent) and budgeting (66 percent). Roughly half are teaching
about building and maintaining credit (54 percent) however far
fewer teach about saving for retirement (32 percent) and investing
money (30 percent). The gap in understanding of credit and saving
for the future presents a problem as many students may face
mounting student loan debt that they need to plan for and
manage.
Many of the parents surveyed who are talking about credit may be
misinformed themselves. More than half of the parents incorrectly
believe their bank balance affects their credit score (51 percent)
and that using checks/debit cards can help build credit (52
percent).
In the survey, parents said their biggest area of concern in how
young people approach money is that there’s too much reliance on
mom and dad. They’re also concerned that students don’t have enough
concern with long term goals, and don’t understand the importance
of saving for the future.
“The stakes are high once kids go to college,” Gilson said.
“Instead of managing a weekly allowance, they’re managing
scholarship money and student loans. They need to be confident
about credit and planning for the future, otherwise the impact is
costly. Worse yet, bad habits may be passed along to future
generations, and that is exactly what U.S. Bank is working to
prevent.”
U.S. Bank is breaking through with relatable advice, tools and
resources for students and parents on Student Union. Geared to 18-
through 24-years-olds who are finishing high school or are in
college, U.S. Bank offers scholarship opportunities to students who
complete online lessons about personal finance.
For parents, U.S. Bank offers this advice – have the
conversation. Most parents (56 percent) say their student is “not
very” or “not at all” involved in family finances, which is a great
place to start.
“Being financially fit is vital to a healthy happy life,” Gilson
said. “Talking to teens about money should be as routine as
brushing your teeth or grocery shopping. Look for everyday moments
to have the conversation and know their friends at the bank are
great coaches if the topics are more than parents want to tackle
alone.”
To help parents start these conversations, U.S. Bank asked a few
of its banker-parents to find everyday moments to talk about money
with the young adults in their lives. Conversations took place
where parents with children at that age usually have the most
meaningful dialogue -- in the car, the basketball court or over a
meal. See some of those conversations here.
About the Parent Financial Education SurveyThe 2016 U.S.
Bank Parent Financial Education Survey was an online, quantitative
survey of 1,542 parents of undergraduate students (18- to
24-years-old), conducted in May 2016. Parents were between 36- and
70-years-old and reflected the U.S. parent population with regard
to race and gender, in accordance with the 2014 American Community
Survey (ACS). Half were men, half were women.
About U.S. BankMinneapolis-based U.S. Bancorp (NYSE:
USB), with $438 billion in assets as of June 30, 2016, is the
parent company of U.S. Bank National Association, the fifth largest
commercial bank in the United States. The Company operates 3,122
banking offices in 25 states and 4,923 ATMs and provides a
comprehensive line of banking, investment, mortgage, trust and
payment services products to consumers, businesses and
institutions. Visit U.S. Bancorp on the web at www.usbank.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160726006317/en/
U.S. BankSusan Beatty,
612-303-9229susan.beatty@usbank.com
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