Researchers say that how well you manage your money -- not how much you have -- is the key to stronger mental health. (© Rawpixel.com - stock.adobe.com)
NEW YORK — In today’s increasingly complex financial landscape, American parents are working overtime to prepare their children for fiscal responsibility — offering an average of 114 pieces of unique financial advice annually. However, there’s a catch: their children are only listening about 54% of the time!
A new nationwide survey, conducted by Talker Research for international money app Wise, polled 5,000 American parents over 30, with equal representation across all 50 states. The findings paint a picture of parents navigating the challenging waters of financial education in an ever-evolving digital age.
Children typically seek financial guidance about four times monthly, while parents proactively offer unsolicited advice roughly five times per month. But how confident are parents in the financial wisdom they’re sharing? The results are mixed: 36% report feeling “very” confident, while 34% are only “somewhat” confident in their financial recommendations.
When it comes to specific financial topics, parents feel most at home discussing traditional money matters. Budgeting tops the list, with 55% of parents expressing confidence in this area, followed by managing savings options (52%) and credit card navigation (41%). Understanding debt and credit scores both garnered 32% confidence levels.
However, the study reveals a significant gap in parents’ comfort with international finance. Only a mere 4% felt confident advising their children on managing money outside the U.S., while currency conversion (11%) and sending money abroad (14%) also ranked among their lowest confidence areas.
“Parents have to manage countless complex conversations as they prepare a child for adulthood. Finances are certainly top of the list, and with varying levels of confidence depending on the banking topic at hand, international finance is one area where more education is essential,” says Ankita D’Mello, Principal Product Manager at Wise, in a statement.
The research also uncovered a growing anxiety among parents, with 40% worried their children will “outgrow” their financial expertise. This concern may be well-founded, as 74% of respondents believe financial management has become more complicated since their own childhood. Nearly half (48%) attribute this complexity to the internet’s double-edged sword: while information is readily available, determining its trustworthiness proves challenging.
The good news? Parents are eager to expand their financial knowledge, with 72% actively seeking to learn more to better guide their children. Interest in international finance is growing, driven by general curiosity (36%) and recognition of our increasingly interconnected world (32%). Personal travel aspirations — both for parents (30%) and their children (22%) — also fuel this interest.
Looking ahead, 79% of parents are open to exploring new tools and resources to enhance their financial literacy, with 22% actively seeking new services. This openness to learning reflects a broader trend: 46% of parents acknowledge they still have more to learn about financial management themselves.
“Parents looking to grow their financial expertise don’t have to go at it alone, especially those who want their kids to listen to them more. Leveraging tools built specifically to solve multifaceted financial problems, like international payments, is a great way to more easily navigate services that are traditionally challenging to understand,” D’Mello adds. “With more financial information available now than ever before, it’s essential to work with providers that are established, affordable, convenient, and transparent, especially when looking to move money internationally.”
Survey methodology
Talker Research surveyed American parents (aged 30+) split evenly with 100 per state. The survey was commissioned by Wise and administered and conducted online by Talker Research between Aug. 29 and Sept. 12, 2024.
