By Olivia Nnorom
Nearly two-thirds of young adults would like to have more conversations with their parents about money and finances, in contrast to what 38 percent of parents thought, according to MoneyTransfers.com’s analysis of data from a Canadian survey.
The survey, conducted by RBC (Royal Bank of Canada), found that the lack of financial education in the current schooling system is raising the need for young adults to navigate their personal finances through other sources.
In its analysis of the poll, which surveyed both young adults and parents, MoneyTransfers.com, which find and compares the best money transfer providers for customers’ needs, reported that over 70 percent of young adults (aged 18-24) cite the cost of living as their biggest challenge in life, followed by inflation at 54 percent. However, only 44 percent of parents believe their children are concerned about their finances, even though almost two-thirds of young adults reported being “very stressed” about it.
The poll revealed a vast majority of young adults (83 percent) say they need more support when it comes to finances and money management, and over two thirds (68 percent) said they felt overwhelmed – feelings that were underestimated by their parents.
Among the surveyed community, 71 percent of parents believed that their children return to them for financial matters. However, only 45 percent of young adults reported that they get financial education from their parents.
This shows that there is room for parents to provide more education and advice when it comes to personal finances. However, as young adults are more engaged with their finances than their parents believe, they look for financial information from other sources – 44 percent of young adults reported their sources as banks, 27 percent from friends, 26 percent from online articles, 26 percent from other family members, and 25 percent from media.
The result also showed that only 15 percent of parents discuss family finance with children.
The survey further found that the young adults who reported being engaged in their finances were more likely to be confident in their ability to save (83 percent) and invest (60 percent), and experienced increased feelings of financial responsibility (82 percent).
“It’s clear that young people expect more when it comes to financial education, and even though there is a wide array of information available, education should really start at home,” Jonathan Merry, CEO of MoneyTransfers.com, said.
“Young adults are clearly interested in managing their finances, and giving them an early start can only help,” Merry said.
