One Pain Point for 2018: Parents’ Growing Responsibility to Care for Their Own Moms and DadsMost Parents Self-Identify as The Star Wars Character Yoda When it Comes to Money Issues
December 20, 2017 — NEW YORK–(BUSINESS WIRE)–American parents of children ages 18 and younger are more hopeful about the future of children than they were at the start of the decade, according to a new Ipsos survey released today and sponsored by New York Life.
More than half of parents (54 percent) say children in the United States overall will have a better standard of living than their parents do when they become adults, up from 41 percent in 2011. When asked about their own children, more than two-thirds (67 percent) say their children will have a better standard of living than they do, compared to just over half who said the same thing in 2011 (54 percent).
Parent respondents are also optimistic about their own finances heading into 2018, with 57 percent reporting that their financial situation will improve next year. And two in five (38 percent) will seek professional guidance to manage their finances.
Next-Gen Will Have It Better…
“Despite a growing number of uncertainties in the world around us, parents remain hopeful that the next generation will have it better,” said Brian Madgett, Vice President, New York Life. “Parents report that they plan to address their financial burdens in 2018, reducing debt, saving more and seeking professional help to manage their finances – important steps that bode well for their family’s financial future.”
Even with these upbeat sentiments, one item seems to be looming– almost half (46 percent) expect they will have to increase their responsibility for the care of their own parents in 2018.
“This survey validates what our agents are seeing in homes across the country – more parents find themselves ‘sandwiched,’ responsible for their children and facing a growing responsibility for their parents. Preparing for the implications of the sandwich effect – which may change their financial priorities and derail some of their good 2018 plans will be an important priority for many in the next year,” said Madgett.
Ways to Help Children Succeed
Parents said they find the following practices important to help their children succeed in 2017:
|Practices that are needed||2017|
|Teaching financial responsibility by giving an allowance, a piggybank, a savings acct, and advice regarding smart spending|
|Encouraging your child(ren) to work toward a well-paying career choice||38%|
|Putting money aside for college education||31%|
|Making sure you have a financial plan to take care of your child in case something happens to you||29%|
|Talking openly about your own personal or family finances||29%|
|Leaving a financial legacy for your child(ren)||19%|
“We applaud parents who are empowering their children with a financial education and at the same time are taking steps, including saving for college and leaving a legacy, to protect the financial future of their children,” added Madgett.
Yoda – “Do. Or do not. There is no try…”
When respondents were asked which Star Wars movie character best reflects how they handle their family finances, the majority selected Yoda, who is described as patient and someone who uses past experiences to guide future decisions. Also critical to Yoda’s persona is teaching the next generation.
“We believe the choice of Yoda means more parents are understanding the connection between a bright future for children and financial literacy,” said Madgett.
Here are the Star War characters choices and percent who picked these characters:
|Yoda – patient, will use past experience to guide future decisions (serving them very well), while passing on wisdom and knowledge to future generations is also an important piece of overall goal||23%|
|Luke Skywalker – family oriented, will build financial goals around needs of family, relying on the expertise of others (though at times reluctantly) to find the way to navigate through the ups and downs||19%|
Chewbacca – loyal and committed, will consult partner when making financial decisions and is ready to take on any task for the good of their family
|Princess Leia –somewhat adventurous, challenging norms but remaining focused, will seek balance between enjoying achieved successes and continuing to work hard for continued growth/success toward financial goals||13%|
|Obi–Wan Kenobi – wise and experienced, will apply past knowledge to side step trouble and find success and is actively willing to take on big obstacles (working solo or with others) for the greater good||12%|
|Han Solo – independent and willing to take risks, has/will experience some financial setbacks but perseveres towards a positive financial goal for self and/or family||9%|
|C3PO – fretful, will often wind up in a financial bind, sometimes needing help from others but other times surprising even themselves in working out a solution||9%|