Having the talk about the birds and the bees is a given for parents, but for Baby Boomers having the money talk with their kids was even more important, according to a new study by Chase, with 96% of Boomers believing that the “money talk” has value.
In this study, carried out by Chase and the Center for Research on Consumer Financial Decision Making at the University of Colorado, they delved deep into how the different generations feel about money and the way they talk about it.
They found that the different generations all have their own level of willingness when it comes to talking about finances, but the younger generation appear to be pretty open.
“We find that different generations have different family obligations and a different willingness to talk money with other family members. Perhaps that is because Millennials are in tighter financial circumstances and need to talk with family members and others to cope,” said Professor John Lynch, who directs the Center for Research on Consumer Financial Decision Making.
The money talk trends with Boomers
Why is the money talk so important? Parents of Boomers weren’t so upfront about money, making their offspring more vigilant about having the talk. This new trend for parents resulted in millennials having more awareness about the value of budgeting, as well as more financial confidence, and a higher level of ambition when it comes to retiring early. And in these areas they outperform their older counterparts.
The data shows just how much things have changed. With just 34% of Boomers indicating that their parents talked about money, while 74% of millennials said the same thing. How much money did their parents make? Just 20% of Boomers knew their parents’ income because they told them, yet 54% of millennials said their parents were open about how much they made.
Millennials gearing up for retirement
Millennials have a jump on retirement starting to save at 23 – 17 years earlier than their parents. What age do they want to retire at – 60 is the age – outdoing their parents by a decade.
And they are not only confident about their ability to make money-related decisions, but they are clearly already getting ready to meet their future financial goals. And 82% are up for talking about finances with just about anyone, whether that’s family, friends or some type of financial adviser.
Millennials also plan on having the money talk with their kids – and will be having it two years earlier than they had the talk. With many planning on sitting down with their children when they are 13 years old.
This survey was conducted between June 9 and 17, 2016. It was made up of 2,021 adults 18 or older, residing in the USA.