Young adults who discussed money with their parents are even more likely to have a budget, more likely to have an emergency fund, more likely to put 10 percent or more of their income toward savings and more likely to have a retirement account, T. Rowe Price said.
Still, when it comes to adulthood, 64 percent of 18- to 24-year-olds felt unprepared to deal with real-world finances.
“Adulting may be a bigger challenge for those who didn’t receive any financial education at school or home as kids since they’re less likely to have a budget, an emergency fund and retirement savings,” said Stuart Ritter, a senior financial planner at T. Rowe Price and the father of three.
In addition, “the decisions about retirement savings and health-care plans that young adults need to make have gotten more complex,” he said.
Ritter suggests having conversations with your children about money more often and beginning at a younger age. “This shouldn’t be ‘The Money Talk’ the day before they go off to college — it’s about everyday teachable moments, starting early and covering all of the topics.”
“We are talking to our kids about the dangers of illegal drugs long before they are facing those situations,” Ritter said. “Personal finance should be the same way.”
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