Business View Magazine | October 2019

5 BUSINESS VIEW MAGAZINE OCTOBER 2019 O p e n i n g L i n e s O C T O B E R R 2 0 1 9 PARENTS JUST DON’T UNDERSTAND (FINANCES): 3 IN 5 AMERICANS RELY ON UNCERTAIN PARENTS FOR FINANCIAL T here’s nothing more convenient than a call to mom or dad for a quick gut check on important financial matters, but do they always know best? A new survey found that while 61 percent of Americans consider parents a key influence in shaping the way they manage their finances, parents of kids under age 21 lack confidence in a number of personal finance topics, with 46 percent giving their level of financial literacy a grade of C or lower. In fact, not all parents reported feeling confident when it comes to managing a 401(k) (53 percent), planning for retirement (61 percent) or taking out and paying off student loans (55 percent). The skill parents felt least confident in was investing in the stock market (33 percent). In spite of parents’ lack of confidence around certain financial topics, most Americans selected parents (32 percent) over partner/spouse (16 percent), internet sites and blogs (12 percent), a financial advisor (12 percent), or school classes (8 percent) as the resource they turn to the most to learn about managing finances. “Parents have the benefit of having real-life experience that has helped them to sharpen their personal finance skills, but most are not going to be experts in every topic,” said Tim Harris, Executive Vice President at COUNTRY Financial. “Whether you’re a parent or not, it’s important to educate yourself in all of the ways finance affects your life, from the day-to-day management of budgets and loans, to planning for the future. Consider consulting with a financial expert who can build your confidence and help to fill in those gaps.” Americans Lack Financial Literacy & Education Americans’ reliance on their parents for matters of