New Survey Finds That More Parents Are Talking To Their Kids About Money, But Lack Knowledge on Important Topics
Washington, D.C. (April 1, 2016) – According to a new survey published in conjunction with National Financial Literacy Month this April, nearly 9 out of 10 parents report that they talk to their kids about money and personal finance. The research was released today by EverFi, the education technology company that teaches, assesses, and certifies learners in critical skills including financial literacy. These findings indicate an 18% increase in parental conversations from 2003 based on a survey conducted by Capital One and Consumer Action.
While most parents agree that talking to their kids about money is important, only 43% describe themselves as well prepared to do so. Parents are more likely to discuss foundational topics that influence kids’ attitudes toward money including deciding what you can afford, understanding wants versus needs, comparing prices, and smart shopping. They are less likely to cover more challenging topics that prepare young people to interact with the financial system including credit scores and reports, establishing an emergency fund, and investing and growing wealth.
Many parents also look to schools and employers to round out their family financial capability. When asked where they expect their kids to learn about money, most parents said “from me” (86%). The next most popular responses were from school (42%) and through a job (34%). Support for teaching financial education in schools is almost universal amongst parents (95%), even though most (70%) report that they did not have access to financial education when they were in elementary, middle, or high school.
Teens also consider their parents to be their primary source of financial information outside of school – 79% of teens agree that they have learned about or discussed money and finance with parents or guardians.
But fewer teens (55%) say they talk to their parents about their own personal financial decisions. According to EverFi’s survey of high school students enrolled in EverFi Financial Literacy™, that number increases to 65% after taking school-based financial education. Furthermore, students knowledge of key financial topics increased by an average 80% based on the pre- and post-assessment scores of more than 436,000 students who completed EverFi’s web-based curriculum in 2015-2016 academic year.
“The financial crisis came during millennials’ formative years, and clearly this is having an impact on dinner-table conversations,” said EverFi Co-founder and Financial Education President Ray Martinez. “While parental education is an important piece of the equation, schools-based financial education is critical to filling in the gaps and ultimately preparing students for the decisions they’ll need to make as adults. The private sector can play a massive role in offering financial education to both students and adults.”
EverFi partners with more than 1,200 financial institutions, corporations, and non-profit organizations to bring its digital learning platforms to K-12 schools at no cost. More than 12,000 K-12 schools and millions of college students and adults are using EverFi’s interactive financial education platforms.
Survey Notes: The survey was conducted by EverFi and ORC International between March 8 and March 14, 2016. Results are based on a survey of 500 adults with children between the ages of 7 and 17. Additional survey results from students included in the study were collected through EverFi’s financial education platform over the same time period.
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About EverFi, Inc.
EverFi, Inc. is the education technology innovator that empowers learners with the skills that prepare them to be successful in life. With backing from some of technology’s most innovative leaders including Amazon founder and CEO Jeff Bezos, Google Chairman Eric Schmidt, and Twitter founder Evan Williams, EverFi has built the most comprehensive critical skills platform focused on Financial Education, Digital Citizenship, STEM Career Readiness, Entrepreneurship, and Health and Wellness. The EverFi Education Network is powered by over 1,200 partner organizations across all 50 states and Canada and has certified over 12 million students. Learn more at www.everfi.com.