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 managing money as adults. The findings show that 53% of respondents believe children today are less financially prepared than when they were growing up, while only 29% feel the opposite.
Generational Perspectives
Grandparents and Baby Boomer parents were the most likely to view today’s children as under‑prepared, each at 61%. Millennials were less inclined to share that view.
Digital Challenges
Chloé Briel, CFP and senior advanced planning manager at Wealth Enhancement, noted that 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,” she said, pointing to apps that let kids receive funds instantly.
Investment Accounts Remain Unopened
More than half of surveyed adults (53%) have never opened an investment account for a child. The gap is widest among grandparents and Baby Boomer parents, both at 63%, while 42% of parents and 41% of Millennials reported the same.
Teaching Financial Values
The survey identified impulse buying and overspending as the toughest lesson for children, cited by 56% of respondents. Only 34% said teaching how to grow money through interest or investing was among the hardest topics.
Briel recommends using real‑life situations—such as budgeting for a family vacation or comparing prices—to involve children in financial decisions. Allowances remain popular, with 63% of adults providing them; 68% of parents and 58% of grandparents said they do so.
The average weekly allowance reported was $21 by parents and $15 by grandparents, combining to an $18 weekly average. Briel emphasizes that allowances should be purposeful, reflecting family values and teaching children to save for goals.
Long‑Term Planning Tools
For families ready to invest, Briel highlights the flexibility of 529 college‑savings plans, noting that overfunding can serve as an estate‑transfer strategy, with excess funds potentially shifted to other eligible family members.
Values‑Based Conversations
Beyond budgeting and investing, Briel urges parents to discuss the underlying values that guide financial choices—whether that be education, travel, security, generosity, or saving for the future. She believes intentional dialogue helps break the cycle of unexamined financial habits passed down through generations.
Overall, the research suggests that consistent conversations, intentional modeling, and a focus on family values are key to improving children’s financial readiness.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
