The future may hold big problems for the future generation of money managers in the eyes of US parents and grandparents.
Seventy-seven percent of parents and grandparents in the U.S. say they are concerned that children today will not be able to manage their finances properly as adults a recent Edward Jones survey says.
The study, which surveyed more than 600 parents, grandparents and guardians, reports that nearly eight out of 10 Americans with children or grandchildren under the age of 18, believe there is reason to be concerned about the next generation’s personal finance skills.
“These results clearly suggest that there is not enough being done to educate today’s youth about managing their finances,” says Lindsey Wilkins, principal of retirement operations at Edward Jones. “It is a common belief that the average American spends too much, saves too little and carries more debt than they should. Sadly, today’s parents and grandparents fear their children’s generation will be no different. To help mitigate these concerns, children need to be provided with a basic understanding of personal finance and a solid grasp of basic financial concepts like debt, credit, and saving for retirement.”
In response to the apprehensions of older generations, Edward Jones launched a program in September that implements what the firms calls its Money Savvy Piggy Bank, an aid designed to help adults teach their kids how to manage money. The piggy bank, a product designed by The Money Savvy Generation, has four parts, one each for saving, donating, investing and spending.
The survey also found that 47% of Americans with a high school diploma or less are extremely concerned about their kids’ and grandkids’ abilities to manage money.
The survey suggests that these concerns are more prevalent among Americans in the northeastern region, with 84% of parents and grandparents worrying about their kids’ future fiscal fitness.