FOCUS
Parental Guidance Suggested
A
sk most anyone and they can tell you lessons they learned the hard way. A survey released by T. Rowe Price
6 CPAFOCUS
in March 2015, “Parents, Kids & Money Survey,” shows more than half—58 percent— of parents are applying that belief to money lessons for their kids, ages 8 to 14. Additionally, 52 percent of parents said they believe their kids should have their own credit cards to learn money management. However, only 21 percent of kids reported feeling knowledgeable about credit. In a separate survey conducted by Junior Achievement USA® (JA) and Te Allstate Foundation, also released in March 2015, 84 percent of teens (13 to 18 years-old) say their parents serve as their most influential teachers when it comes to money management skills. Yet, in that same survey, more than one-third (34 percent) of parents say their approach to teaching their kids about money is to not discuss finances with their kids and “let kids be kids.” More and more parents are leaning toward financial education in schools. Nearly all of the respondents in the T. Rowe Price survey (91 percent) said kids should learn financial lessons in school, compared to only 70 percent in 2010. Additionally, 75 percent of parents think personal finance should be required to graduate from high school. However, only 17 states— including Oklahoma—have a personal finance course requirement, which is only a slight increase from 13 in 2011. A report released in 2014 by the Federal Reserve showed that young people in states that mandated personal financial education on average had higher credit scores than their counterparts in states that don’t. Based on feedback from kids and teens in the JA and Te Allstate Foundation and the T. Rowe Price Survey, as well as studies from
May/June 2015
the Council on Economic Education and the Federal Reserve, the logical answer seems fairly clear: use both. Growing up, most kids learn basic lessons—spelling, reading, math, manners, etc.—both in the home and at school. Money is certainly one of life’s most basic lessons, regardless of where you live or the currency used. In a 2012 telephone survey conducted for the American Institute of CPAs by Harris Interactive, 67 percent of parents strongly agreed that they knew enough about personal finance to teach their children good habits, but only 13 percent of parents said they talk daily with their children about financial matters. Parents were far more likely to have discussed other vital topics, like the risks of smoking (82 percent), the dangers of drugs and alcohol (84 percent), the importance of getting good grades (87 percent), the benefits of good eating habits (87 percent) and the importance of good manners (95 percent). Hopefully, the divide will be bridged quickly: 48 percent of the teens in the JA and Te Allstate Foundation survey think their parents will help pay for college, while only 16 percent of parents of teens report planning to pay for post-secondary education—which means about one third of American teens are close to getting a rude awakening. Members of the OSCPA were asked
on Evolve (
evolve.oscpa.com) and on the OSCPA’s Facebook page (
www.facebook.com/ OklahomaCPAs), “What was the best money advice you got from your mom/dad?” Here’s what they had to say: “My dad told me, ‘Son there’s one thing for
sure.... no matter how much money you make it will never be enough.’” —Travis Singleton, CPA; Controller; Te Gray Companies; Ardmore, Okla.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32