Although parents are hesitant to talk about their own finances, they have more detailed financial conversations with their children than their parents have with them

MINNEAPOLIS, September 26, 2024–(BUSINESS WIRE)–Parents today are talking to their children about topics like investing in stocks and bonds and choosing career paths that align with their child’s financial goals – discussions that many have not had with their own parents they grew up, a new survey from US Bank found. Additionally, nearly one in four parents and more than half of Generation X parents fear that their children will be financially dependent on them well into adulthood.

The survey also found that the majority of Americans would rather talk about who they are voting for in the upcoming presidential election than their personal finances, and that many people may not be honest with their partner when it comes to money – out of shame and anxiety feelings of embarrassment.

“For many people, talking about money is extremely uncomfortable; this is especially true for families,” said Scott Ford, president of US Bank’s wealth management division. “We conducted this survey to find out what people of different generations think about a variety of sensitive financial topics – asking family members for money, talking about debt, savings and inheritances – so we can better help them solve these challenges.” During the survey found that while many families and couples discuss financial concepts at the dinner table, many do not feel comfortable discussing their own financial situation – perhaps because they fear being judged or embarrassed.

Beth Lawlor, President of Private and Affluent Wealth Management at US Bank, said: “We hope these survey results start a dialogue about the importance for families to discuss difficult financial topics and ultimately empower more families “To engage in the difficult conversations that are critical to building wealth.

Other key findings from the survey:

Americans would rather discuss who they will vote for in the 2024 presidential election than their finances.

• Parents would rather talk to their children about their candidate’s choice (76%) than about their finances (63%).

• When talking to their parents, Americans feel more comfortable talking to their parents about their vote for president (68%) than about their personal finances (55%).

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Today, parents have more detailed financial discussions with their children than their parents have with them.

• Today, parents are nearly twice as likely to regularly talk to their children about financial topics like investing in stocks and bonds (44%) as their parents (24%).

• Although these conversations were more common, they were with mothers fewer They are more likely to discuss investing in stocks and bonds with their children than with fathers. (35% women vs. 51% men).

• Today, parents are also more likely to say they have had conversations with their children about choosing a career path that aligns with their child’s financial goals — a discussion they may not have had growing up. (65% of parents discussed this concept with their children growing up, while only 41% of Americans remember discussing this concept with their parents growing up.)

Although parents are more likely to talk to their children about financial concepts, children don’t necessarily turn to their parents for financial advice.

• Less than half of Americans (44%) ask a parent for money advice.

• While many parents admit that their children are not managing their money the way they want them to (43%), they are very confident in their children’s financial strength: More than three-quarters (79%) of parents say theirs are Children are able to manage their finances successfully.

• Additionally, 54% of Americans believe their children can provide for them financially when needed. More women (57%) than men (51%) felt this way.

• Despite this confidence, nearly four in ten (37%) parents of all generations fear that their children will need financial support well into adulthood.

  • More than half of Generation X parents (53%) fear their children will be financially dependent on them well into adulthood.

  • However, it’s not just parents who are worried. 45% of Millennials and 39% of Generation X fear they will be responsible for financially caring for their parents/in-laws.

Americans often disagree with their partners about their finances and may not be honest about money – driven by feelings of shame and embarrassment.

• More than a third of Americans disagree with their partner about how best to manage their money, both now (39%) and in retirement (34%). Slightly less than a third (31%) also say they are unaware of their partner’s finances and have different opinions about what to do with their money when they are both gone (29%).

• Nearly two-thirds (60%) of Americans believe they make better financial decisions than their partner.

• One-third of Americans say they have lied to their partner about money (30%).

• The driving force behind the deception may be embarrassment – ​​a third (36%) of unmarried Americans say they would be embarrassed to be completely transparent about their finances with the person they are dating.

  • This is especially true for younger Americans (Gen Z and Millennials), as 4 in 10 (41%) report the same feeling of embarrassment when being completely transparent about their finances with the person they are dating (compared to 31). % of Generation X, Baby Boomers). and Silent+).

Americans are often unaware of their family’s financial situation, but many suspect that they will have to provide assistance to their parents or in-laws in the future.

• Nearly half of Americans (45%) have no idea what their parents’ financial situation is.

• Americans who are still in touch with their parents are more likely to know about their parents’ financial liabilities (60%) than their savings (38%), and daughters are much less likely to know about their parents’ savings (33%) than sons (46%) ). %)

• Although many Americans are unsure about their parents’ financial situation, about half (48%) say they suspect they will have to provide for their parents or in-laws in the future.

• While most Americans are willing to help their parents, those in need may be hesitant to ask for help themselves. 56% of Americans say they are uncomfortable asking their family for financial help, and 58% say they are too embarrassed to ask.

For most parents, it’s important to talk to their children about donating to charity, and for some, it’s important to make sure a portion of their inheritance goes to a good cause.

• More than half (55%) of parents in the U.S. discussed giving money to charity with their children while they were growing up.

• Slightly more women (58%) than men (52%) discussed this with their children.

• More than half (55%) say creating generational wealth is a priority.

Financial advisors are the new therapists. They get families to talk openly and honestly about money.

• Financial advisors not only provide practical investment (87% of wealthy families) or tax advice (77% of wealthy families), but also help bridge conversation gaps between wealthy families. Over half (53%) of wealthy Americans say their financial advisor has helped their family through uncomfortable conversations about money.

• This is particularly true for younger wealthy Americans: 8 in 10 say their financial advisor has helped their family with uncomfortable conversations about money (82% of wealthy and affluent Generation Z and Millennials), nearly twice as many as their older counterparts (45% ). wealthy and wealthy Generation X, Boomers and Silent+).

• In fact, financial advisors provide additional comfort to wealthy and affluent Generation Z and Millennials, as 8 in 10 (79%) who have a financial advisor also experience positive feelings (compared to 71% of affluent and affluent Generation X). , Boomers and Silent+ with a financial advisor).

A copy of the full report can be found here.

Survey methodology
US Bank conducted a 20-minute online survey of 1,000 ordinary Americans, 1,000 wealthy individuals, and 500 high-net-worth individuals. Mass wealthy individuals are those who have at least $250,000 in investable assets, not including retirement accounts or the value of their primary residence. High net worth individuals need at least $1 million, not including retirement accounts and their primary residence. The general U.S. population sample is nationally representative, while the mass affluent and wealthy sample represents a natural fallout. The margin of error for this study is ±3% for the general US population, ±3% for high net worth individuals, and ±4% for high net worth individuals.

Through US Bank
US Bancorp is the parent company of the US Bank National Association, with more than 70,000 employees and $680 billion in assets as of June 30, 2024. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified business mix, including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. US Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the World’s Most Ethical Companies 2024 and Fortune’s Most Admired National Bank. Learn more at usbank.com/about.

Investment products and services are: NO DEPOSIT • NOT FDIC INSURED • MAY LOSE IN VALUE • NO BANK GUARANTEE • NOT INSURED BY ANY FEDERAL GOVERNMENT AUTHORITY
US Bank and its representatives do not provide tax or legal advice. Each individual’s tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information regarding their particular situation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926905969/en/

Contacts

Kristin Kelly, U.S. Bank Public Affairs and Communications
303.585.4129
[email protected]