Americans who grew up in households where money was rarely discussed are breaking the cycle with their own children.
A new U.S. Bank survey conducted with Morning Consult points to a generational shift toward more open financial conversations at home, with parents placing greater emphasis on teaching money skills from an early age.
Nearly nine in 10 parents polled feel comfortable talking with their children about money, while roughly two-thirds have already started or planned on starting to teach basic money management before age 12. More than nine in 10 parents also said it’s important for children to learn how to save, budget and set financial goals.
While only 49% of Baby Boomers said money was discussed in their childhood homes, 62% of Gen Z respondents said they grew up having those conversations. U.S. Bank said today’s parents represent the first generation in which a majority are intentionally discussing money with their children from an early age.
But the survey also found that turning those conversations into hands-on experience remains a challenge. Only about half of parents have opened a youth bank account for their child. Among those who have not, uncertainty was the biggest obstacle rather than cost, with many saying they weren’t sure their child was ready or didn’t know where to begin.
Other recent research suggests those early conversations are becoming even more important as young people develop an interest in investing sooner than previous generations. An April survey from Charles Schwab found that 70% of teenagers are very or extremely interested in investing, while 73% of parents believe it’s very important for teens to learn about investing. Perhaps more notably, 56% of teens identified their parents as the source they trust most for investing advice.
Schwab’s research also points to growing demand for financial education beyond the home. Nearly two-thirds of parents and half of teens ranked money management and financial education among the most important subjects to be taught in school, reflecting continued concerns that formal financial literacy education has not kept pace with students’ needs.
Parents are taking on a larger role as their children’s first financial educators. Conversations about saving, budgeting and investing are becoming far more common than they were for previous generations. However, helping children build financial confidence may require more than just talking about money. Giving them practical experience could help turn those life lessons into lifelong financial habits.
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