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Wilmington, DE- Tough economic times have forced parents to cut back on their kid’s savings while also reaching into their kid’s pockets to pay daily household expenses, according to a new survey released by ING DIRECT. The new survey also showed while parents are tapping into their kid’s savings accounts, they’re more prepared to talk to their children about drugs and alcohol or sex and dating than money and finances.
According to the survey results, one in three parents (34 percent) have reduced the contributions they make to their children’s savings, and nearly one in five (18 percent) parents who have savings set aside for their children have taken money from their children’s savings to cover bills or pay off debt.
“It’s clear that parents are struggling with their expenses during these difficult times, but tapping money put aside for their kids will only exacerbate a family’s problems when it comes time to pay for college,” said Arkadi Kuhlmann, President of ING DIRECT USA, the nation’s largest direct bank. “Parents need to set an example by setting up an automatic savings plan. A ‘set it and forget it’ savings mentality makes it easy for parents to save, while teaching their children about the importance of putting some money aside for future needs.”
Even as parents tap their children’s savings accounts, many are not preparing for their children’s financial future.
· One in four (27 percent) parents with children under the age of 18 do not have any savings set aside for their children.
· The number increases to one in three (33 percent) for parents in the 35 to 44 age bracket who typically have children approaching college age.
When it comes to speaking to children about finances:
Two in five (39 percent) parents are more prepared to talk to their children about drugs and alcohol than money and finances.
Nearly three in ten (27 percent) parents are more prepared to talk to their children about the birds and bees or dating than money and finances.
Although a large number of parents feel they are not prepared to talk about finances with their children, nearly all (94 percent) parents believe that they are primarily accountable for educating their children about the importance of money and responsible spending. However, the survey results showed that 96 percent of parents feel financial education should also be taught in school. Almost half (42 percent) of parents think schools should start teaching financial education before fifth grade, and eight in ten (82 percent) think it should happen before high school.
The national online survey was conducted within the United States by Harris Interactive on behalf of ING DIRECT between April 6-8, 2009 among 2,123 adults age 18+, 535 of whom were parents of a child under 18 years old.
According to the survey results, one in three parents (34 percent) have reduced the contributions they make to their children’s savings, and nearly one in five (18 percent) parents who have savings set aside for their children have taken money from their children’s savings to cover bills or pay off debt.
“It’s clear that parents are struggling with their expenses during these difficult times, but tapping money put aside for their kids will only exacerbate a family’s problems when it comes time to pay for college,” said Arkadi Kuhlmann, President of ING DIRECT USA, the nation’s largest direct bank. “Parents need to set an example by setting up an automatic savings plan. A ‘set it and forget it’ savings mentality makes it easy for parents to save, while teaching their children about the importance of putting some money aside for future needs.”
Even as parents tap their children’s savings accounts, many are not preparing for their children’s financial future.
· One in four (27 percent) parents with children under the age of 18 do not have any savings set aside for their children.
· The number increases to one in three (33 percent) for parents in the 35 to 44 age bracket who typically have children approaching college age.
When it comes to speaking to children about finances:
Two in five (39 percent) parents are more prepared to talk to their children about drugs and alcohol than money and finances.
Nearly three in ten (27 percent) parents are more prepared to talk to their children about the birds and bees or dating than money and finances.
Although a large number of parents feel they are not prepared to talk about finances with their children, nearly all (94 percent) parents believe that they are primarily accountable for educating their children about the importance of money and responsible spending. However, the survey results showed that 96 percent of parents feel financial education should also be taught in school. Almost half (42 percent) of parents think schools should start teaching financial education before fifth grade, and eight in ten (82 percent) think it should happen before high school.
The national online survey was conducted within the United States by Harris Interactive on behalf of ING DIRECT between April 6-8, 2009 among 2,123 adults age 18+, 535 of whom were parents of a child under 18 years old.
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