Parents would rather talk to their kids about drugs, smoking, and bullying than family finances or investing, according to a recent T. Rowe Price survey.
It's not that most parents feel like they don't know enough to talk to their kids about finances because more than 90 percent said they understand how to set financial goals and the importance of saving. Some 64 percent of parents said they had a good understanding of how to beat inflation, 76 percent said they know what diversification is, and 66 percent understood asset allocation, according to the survey.
Many parents (72 percent) said they spend the majority of their time teaching their kids about how to spend wisely, according to the survey. But only 51 percent of parents said they teach their kids how to set goals for saving money and only 46 percent said they teach their children about spending and saving, resulting in children lacking a long-term understanding of how to handle their future finances.
Adding to those numbers, just 50 percent said they regularly set aside money to save or invest, 43 percent said they set goals for savings, and 41 percent go over spending and saving trade-offs before they make financial decisions, according to the survey.