A recent survey from Wells Fargo says that when it comes to personal finance, young people ages 18 - 22 know what's good for them but their parents know what's best for them.
That there's a generation gap is not news. But the size of the gap is.
For example:
--95 percent of parents feel their children will reach their financial goals; only 5 percent of young adults share that confidence.
--92 percent of parents feel budgeting is effective; only 5 percent of young adults agree.
--Parents' three top priorities for their children are to find a job,and pay off their credit card debt; young adults want most to find a job, buy a car and buy a home.
--A much greater percentage of adults understands credit scores, annual percentage rates, 401k(s) and compound interest.
Like most surveys, this one also raises some questions. How many of those surveyed were 18 and how many 22? How come the parents interviewed are so much more financially literate than average American adults? And aren't certain goals--like wanting a set of wheels--simply age-appropriate?
Everyone, parents and young adults alike, can benefit from a solid education in financial literacy. That's why CPA nationwide are committed to improving the financial IQ of all Americans, of all ages. You'll find voluminous information on personal finance at the 360 Degrees of Financial Literacy site.
Visit there today. And take a parent with you.
It's pretty clear that young people don't have a clue. But I'm sure most of us were in the same situation when we were their age. Live and learn!
Posted by: Mesa AZ CPA | February 20, 2010 at 09:41 AM
I'm not sure that the parents really know much either... which is scary. I know my parents are a big influence on how I view money.
Posted by: Kel | February 28, 2010 at 09:22 PM