USA TODAY: Millennials bank on parents for advice, fin. help
April 21, 2015
CHARLOTTE, N.C., and McLEAN, Va. (4/22/15)--When millennials need financial advice--or a little more money in their wallet--they most often turn to their parents, according to the Bank of America/USA TODAY Better Money Habits millennial report released Tuesday.
Eighty percent of millennials say their parents have had an influence on their attitudes toward money, with nearly 60% attributing their current financial behavior to their parents' advice or examples.
"Our research shows that parents remain the strongest influence on the money habits their children develop and practice as adults," said Andrew Plepler, Global Corporate Social Responsibility executive for Bank of America.
Parents and millennial children put a heavy emphasis on the importance of savings. Sixty-eight percent of millennials have money set aside for savings. After the Great Recession, saving for an emergency has become a priority for 49% of millennials and 32% of parents.
The report noted that both millennials and parents think millennials' financial hurdles to buying a house or saving for retirement are more difficult than those faced by the previous generation. Student debt and slow job growth are among the challenges holding millennials back financially.
"A lot of today's millennials are dealing with a lot of financial factors that their parents, and certainly adults in America, did not have to contend with a generation or two ago," personal finance expert Lynnette Khalfani-Cox told USA TODAY (April 21).
Sixty-five percent of millennials (65 percent) said their parents helped them out "a lot" or "some" when they were just starting out compared with 36% of parents who say they received financial help at the same stage in life. Nearly a third provide financial assistance because they believe their children truly "need" their help, the report said.
Overall, 40% of millennials currently receive financial help from their parents, including 20% who are married or living with a partner.