• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

T. Rowe Price: Pandemic's Impact To Financial Well-Being Compels More Parents Than Ever To Have Money Conversations With Their Kids

Parents, Kids & Money Survey also finds that the pandemic has exacerbated existing racial inequalities, including the racial retirement savings gap


News provided by

T. Rowe Price Group, Inc.

Apr 21, 2021, 10:00 ET

Share this article

Share this article


BALTIMORE, April 21, 2021 A new study from T. Rowe Price provides a look at how the coronavirus pandemic has impacted families' financial well-being, compelling more parents than ever to have conversations regarding money matters with their children. Further, the study shows how the pandemic has exacerbated existing racial inequalities, including the racial retirement savings gap.

Continue Reading
T. Rowe Price's Parents, Kids & Money Survey 2021
T. Rowe Price's Parents, Kids & Money Survey 2021
T. Rowe Price's Parents, Kids & Money Survey 2021
T. Rowe Price's Parents, Kids & Money Survey 2021

T. Rowe Price's 13th annual Parents, Kids & Money Survey, which sampled more than 2,000 parents and their 8- to 14-year-olds, reveals insights into the pandemic's impact on different families. The findings suggest that parents feel increased urgency on the need to have money conversations with kids.

In evidence that the pandemic has furthered racial inequalities, Black, Hispanic, and Asian parents were more likely than their white counterparts to report that the pandemic had a negative impact on their financial well-being. Black and Hispanic parents found themselves more than twice as likely to reduce retirement savings versus increasing it and more than twice as likely to reduce college savings.

"It's unfortunate and concerning, albeit not that surprising, to learn from the study that the pandemic has impacted many families' financial well-being. That it has compounded the drivers of the racial wealth gap is incredibly disappointing and an indication that there is much work to be done to address this over the long term," says Jerome Clark, strategic program manager in T. Rowe Price's Multi-Asset Division and father of two.

"The one silver lining is that parents are having more conversations with kids about money. Kids often pick up on unspoken cues, and stressful situations can be turned into powerful teaching tools. Our research shows that kids who have had frequent money conversations with their parents are better positioned for financial responsibility in adulthood. T. Rowe Price's Money Confident Kids® program is particularly well suited to support such conversations given its emphasis on helping kids understand long-term investment concepts and that wealth-building is a long-term endeavor," Mr. Clark says.

T. Rowe Price's annual Parents, Kids & Money Survey has consistently shown that there is an opportunity for all parents to have more money conversations with their kids. To help parents discuss money with their kids, the firm created MoneyConfidentKids.com, which provides free online educational games, classroom lessons for educators, and tips for parents that are focused on financial concepts, such as goal-setting, spending versus saving, inflation, asset allocation, and investment diversification.

PARENTS ARE TALKING TO THEIR KIDS ABOUT MONEY MORE THAN EVER

  • A record number of parents are having money conversations with their kids regularly: T. Rowe Price recommends that parents discuss money matters with their kids once a week or more. In 2021, a record number of parents followed T. Rowe Price's recommendation with 47% of parents having money conversations with their kids once a week or more. Since 2017, less than 35% reported following T. Rowe Price's recommendation each year.
  • More money conversations were taking place: 44% of kids and 43% of parents report having more money conversations since the pandemic.
  • Conversations were happening within families of all races: While T. Rowe Price's 2020 Parents, Kids & Money Survey, which was administered before the pandemic, found that Black families were more likely to have money conversations with their kids, the 2021 survey found no meaningful differences among races. Families of all races report having more money conversations in 2021.

FAMILIES' FINANCIAL WELL-BEING IS STRAINED BY THE PANDEMIC

  • Many families report the pandemic has negatively impacted their financial well-being: 80% of parents say their financial well-being has been impacted by the pandemic, with 67% of them saying the impact has been negative. However, some families (33%) say the pandemic has had a positive impact on their financial well-being.
  • Some families' savings have taken a hit during the pandemic: 29% of families are saving less for retirement, 27% decreased savings for college, and 35% are saving less for other goals. Meanwhile, 40% report decreased income and 34% report increased credit card debt. However, there is a smaller percentage of parents that report increased retirement savings (23%), college saving (20%), saving for other goals (27%) and income (22%), as well as decreased credit card debt (21%).  
  • The percentage of families carrying credit card debt has increased: Families reporting they have credit card debt rose from 43% in 2020 to 57% in 2021.
  • Parents were using their retirement funds early: 53% of parents responded that they have pulled funds from their retirement savings within the past year. The number one reason cited for doing so was health care costs. 
  • More arguments related to finances were taking place: 42% of parents report having more arguments about money.
  • Kids perceived their parents as more stressed: 52% of kids said their parents are more stressed.
  • Some kids were receiving less allowance: 28% of parents reported decreasing their kids' allowance.

THE RACIAL WEALTH GAP IS EXACERBATED BY THE PANDEMIC

  • Parents of color were most negatively impacted: Among families who report that their financial well-being was impacted by the pandemic, Black (74%), Hispanic (77%), and Asian (78%) parents are more likely to report that they were negatively impacted by the pandemic than white families (65%). 
  • Black and Hispanic parents were most likely to reduce retirement savings: Black and Hispanic parents were more than twice as likely to decrease retirement savings as they were to increase it (Black parents: 37% versus 14%; Hispanic parents: 35% versus 14%). However, the percentage of white families that decreased retirement savings was comparable to the percentage of white families that increased retirement savings (28% versus 26%). This may compound the existing retirement savings gap, as only 40% of Black families and 40% of Hispanic families have retirement savings compared with 62% of white families.  
  • Parents of color saw similar trends with college savings: Black and Hispanic families were more than twice as likely to decrease rather than increase college savings (Black families: 35% versus 11%; Hispanic families: 34% versus 14%). In contrast, the percentage of white families that decreased college savings was comparable to the percentage of white families that increased retirement savings (26% versus 22%). This trend is particularly concerning because, according to the survey responses, Black families (34%) and Hispanic families (31%) are significantly more likely than white families (16%) to have student loan debt.  
  • Parents of color were more likely to report a reduction in their income: Black (50%), Hispanic (51%), and Asian (47%) parents were more likely to report their income decreased, compared with white parents (38%).
  • Increases in credit card debt were not meaningful between groups: 30% of Black, 38% of Hispanic, 31% of Asian, and 35% of white families report increased credit card debt.

MONEY CONFIDENT KIDS is a registered trademark of T. Rowe Price Group, Inc.

ABOUT THE SURVEY
The 13th annual T. Rowe Price Parents, Kids & Money Survey, conducted by Dynata, aimed to understand the basic financial knowledge, attitudes, and behaviors of both parents of kids ages 8 to 14 and their kids ages 8 to 14. The survey was fielded from January 25, 2021, through February 5, 2021, with quotas of approximately 49% men and 51% women. A total of 2,023 parents of children aged 8 to 14 in the U.S. participated in the representative sample, and the sampling error for the representative sample is +/-2.1% at the 95% confidence interval. In addition, a separate oversample of multiple ethnic groups who are parents of children aged 8 to 14 in the U.S. was completed to provide more depth of analysis. The ethnic oversample (n=1,018) included African-American/Black parents (n=215); Hispanic/Latino or Spanish-origin parents (n=238); Asian parents (n=219); and other ethnic parents (American Indian, Alaskan Native, Native Hawaiian, or other Pacific Islander (n=404). All statistical testing done among subgroups is conducted at the 95% confidence level. Reporting includes only findings that are statistically significant at this level.

ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), is a global investment management organization with $1.52 trillion in assets under management as of March 31, 2020. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com or our Twitter, YouTube, LinkedIn, Instagram, and Facebook sites.

SOURCE T. Rowe Price Group, Inc.

Related Links

www.troweprice.com

Modal title

Also from this source

T. ROWE PRICE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS


T. ROWE PRICE ADDS NEW HEAD OF GLOBAL SEPARATELY MANAGED ACCOUNT OFFERING

Explore

More news releases in similar topics

  • Banking & Financial Services
  • Surveys, Polls and Research
  • African American
  • Diversity, Equity & Inclusion
  • Children

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2023 Cision US Inc.