Financial Education

When it comes to financial education, most Americans feel like they're going it alone. Across all generations, 8 out of 10 Americans surveyed say they acquired financial management skills on their own. About half  "know a little" about money management but only 4 percent have a high level of expertise.

 

Americans surveyed give their parents high grades for teaching them to have a strong work ethic, but low grades for teaching them about money. On the other hand, a quarter of the parents surveyed said their children have no interest in learning about saving and investing from them. Another quarter say "I don't know enough about it to teach them."

 

Schwab's Rethinking Retirement Survey polled representatives of Generation Y (ages 13-31), Generation X (ages 32-43), Baby Boomers (ages 44-62) and the Silent Generation (ages 63-83). Here's what we heard:

 

REPORT CARD: Parents
Q: What letter grade would you give your parents for teaching you each of the following: Total Gen Y Gen X Baby Boomers Silent Generation
How to have a strong work ethic

B+

 B B B+ B+
Importance of a good education B B B- B- B-
How to be a good parent B- B B- C+ C+
Religious and spiritual values C+ C C C+ B-
Dangers of drug and alcohol abuse C C+ C C- C-
How to manage money wisely C- C- C- C- C

 

"Live within your means" and "begin saving early" are considered the best lessons for parents to teach their children, according to the survey.
Q: Which are the most important lessons in saving and investing for parents to teach their children? Total Gen Y Gen X Baby Boomers Silent Generation
Live within your means 69% 63% 71% 71% 74%
Begin saving at an early age 65% 62% 61% 69% 64%
Avoid high-interest debt 29% 32% 31% 30% 25%
Learn how to invest wisely 17% 21% 17% 13% 13%
Get sound financial advice from a trustworthy resource 6% 4% 6% 4% 10%

 

95% of those surveyed agree that financial management should be included in the standard high school curriculum.
Q: Financial management should be a standard part of the education curriculum in high school. Total Gen Y Gen X Baby Boomers Silent Generation
Strongly agree 66% 53% 65% 72% 73%
Somewhat agree 29% 39% 31% 25% 23%
Somewhat disagree 4% 7% 3% 3% 3%
Strongly disagree 1% 2% 1% 1% 1%

 

While most Americans surveyed want financial help and guidance, they're not sure who to trust.

 

REPORT CARD: Financial Resources
Q: Who do you trust for reliable information about financial security during retirement? Total Gen Y Gen X Baby Boomers Silent Generation
Professional financial advisors

C+

 B C+ C C
Family and friends C C+ C C C
Non-profit organizations C C+ C C- D+
Banks C- C+ C- C- D
Employers C C C C- D+
Political leaders F F F F F
Popular media D- D- D- F F
The Internet C- C C- C- D+
Brokerages D+ C- C- D+ D
Insurance companies D D+ D- D- F

 

Other Resources

 

 
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