As part of its mission to help people lead healthy, confident financial lives, Quicken Inc., maker of America’s best-selling personal finance software, recently surveyed over 2,000 adults in the U.S. to learn more about the impact of early financial education.
The responses—half of which were sourced from the general population and half from the Quicken customer community—provide a deeper understanding of how parents talk to their kids about money and the impact of their own early financial education (or lack thereof) on those conversations.
Early Financial Education Has A Significant Impact on Adult Earning Power
There was a clear correlation between early education in money and financial confidence and success as adults. People who reported learning about money as a child are three times as likely to have a personal annual income of $75k or higher than those who didn’t (45% vs. 14%).
A significant challenge emerged: one-third of adults surveyed said that no one taught them about money when they were children. Unsurprisingly, among that group, only 13% report a high level of confidence in their finances as adults.
A Lack of Financial Education Can Span Generations
People who learned about money as children are 20% more likely to prioritize teaching their own children about money. Those who said no one taught them about money as a child were twice as likely to delay talking to their own children about money until age 18+.
The Right Tools are Key
The top tools for teaching kids about money—allowances, saving accounts, and piggy banks— may not have changed much over time, but the lessons have evolved. Today, parents are teaching their children about charitable giving 60% more than their own parents did, using credit cards to teach their children about money almost 50% more, and teaching their kids about investing 85% more than the people who taught them about money.
There’s good news too. The survey revealed evidence that using the right tools, like software, can compensate for an early gap in financial education. When Quicken isolated the answers from its customers they found, even when lacking an early financial education, Quicken users are five times more likely to have a high level of confidence in their finances than the general population (65% vs. 13%).
For a look at the full survey results, read Raising Financially Independent Children on the Quicken blog.
For over 30 years, customers have relied on Quicken to help manage their complete financial picture, so they can live their best lives. In 2016, Quicken became a fully independent company led by members of the early Quicken team to help a new generation of customers make the most of their money. Today Quicken is the best-selling personal finance software in the US. We have expanded our lineup to include Quicken on the Web and the Quicken Mobile App for iOS and Android so customers can manage their finances anytime, anywhere. More information can be found at quicken.com.