A recent study by Wealth Enhancement surveyed 1,000 U.S. parents and grandparents—500 of each—to gauge how well today’s youth are prepared for financial adulthood. More than half (53%) of respondents believe children are less prepared now than they were when the respondents were growing up, while only 29% think the opposite.
Generational perspectives differ
Grandparents and Baby Boomer parents were the most likely to view today’s children as financially under‑prepared, each at 61%. Millennials were less inclined to share that view.
Digital life adds new challenges
Chloé Briel, CFP and senior advanced planning manager at Wealth Enhancement, said the instant nature of digital banking makes it harder for families to set clear financial boundaries. “Money, like so many other commodities today, can feel instantaneous,” Briel explained, noting that children can receive funds instantly through apps, bypassing the traditional cash‑hand‑over that once taught value.
Investment accounts remain uncommon
Despite worries, 53% of surveyed adults have never opened an investment account for a child. The gap is widest among grandparents and Baby Boomer parents (63% each), while 42% of parents and 41% of Millennials reported the same.
Briel recommends a long‑term view, noting that a longer market timeframe can reduce stress and risk. She also highlighted the flexibility of 529 college‑savings plans, suggesting that overfunding can serve as an estate‑transfer strategy, with excess funds shifted to eligible family members.
Teaching impulse control is the toughest lesson
When asked which financial lesson is hardest to teach, 56% said helping children avoid impulse purchases and overspending. Only 34% found teaching how money can grow through interest or investing to be among the most difficult.
The modern spending environment—social media, one‑click buying, rapid delivery—creates constant temptation. Briel advises families to involve children in real‑world decisions, such as budgeting for a vacation or comparing prices, to build practical skills.
Allowances remain a popular tool
Allowances are still widely used, with 63% of adults reporting they give their children an allowance. Among parents, 68% do so, while 58% of grandparents report the same. The typical starting age is eight, though 51% begin between ages five and twelve.
Respondents said the average weekly allowance is $21 for parents and $15 for grandparents, averaging $18 overall. Briel stresses that the purpose behind an allowance matters—whether it’s to teach saving, budgeting for a gift, or simply to give children a sense of ownership over small purchases.
Values shape money habits
Briel urges families to begin financial conversations with values, reflecting on what each household prioritizes—travel, education, security, generosity, or saving. Open dialogue can help break the cycle of unexamined financial anxieties passed down through generations.
Overall, the study suggests that consistent conversations, intentional modeling, and value‑focused discussions are key to building stronger financial habits in the next generation.
Original reporting: El Paso News (HLL/CB) — read the source article.
