Parents Talk Finance with Their Kids, But Need More Resources to Build Confidence

• New research from Wise finds American parents dole out over 100 pieces of financial advice a year, but confidence levels hugely vary by topic
• Parents had the lowest confidence in topics related to moving and managing money internationally; highest confidence in budgeting, savings and credit
• Respondents noted a desire to further their financial knowledge in today’s changing world, especially with more information available than ever before

New York, NY, October 15, 2024 — The average American parent offers their child 114 pieces of unique financial advice per year, according to new research conducted by Talker Research on behalf of the international money app Wise. However, parents admit their financial advice doesn’t always land: respondents said their child listens only about half (54%) of the time.

A survey of 5,000 American parents — aged 30+ and split evenly by 100 individuals across all 50 states — uncovered this disconnect by asking respondents about the type of financial advice they give their children, how confident they are in their own guidance, and where they’re seeking to improve the guidance they provide.

On average, respondents said their child asks for financial advice about four times per month. On top of that, parents surveyed also give unsolicited advice about five times a month.

Parents talk frequently about finance, but what’s their real confidence level?

The survey findings showed that parents’ confidence levels vary in the advice they’re giving to their child. Of those who are asked for financial advice, 36% said they’re “very” confident, while 34% said they are “somewhat” confident in the suggestions they provide. 

Of course, the range of topics parents are asked for advice on impacts their ability to counsel their child.

Parents were the least confident in their ability to offer advice when it comes to moving and managing money outside the U.S. From a list of 15 different financial areas, parents had the lowest confidence in assisting their child with international finance (4%). They also lacked confidence in currency conversion (11%) and sending money abroad (14%).

On the other hand, a majority of parents noted higher confidence in helping their child with budgeting their money (55%), managing savings options (52%) and navigating credit cards (41%), as well as understanding debt (32%) and credit scores (32%).

“Parents have to manage countless complex conversations as they prepare a child for adulthood. Finances are certainly top of the list, and with varying levels of confidence depending on the banking topic at hand, international finance is one area where more education is essential,” said Ankita D'Mello, Principal Product Manager at Wise.

“As our lives become increasingly global, whether that’s a child studying abroad or sending money to family and friends in another country, the importance of managing money across borders is only becoming more of a mainstay for parents and their kids.”

The world of international finance is complicated — and parents know it

While parents acknowledge the areas in which their financial knowledge is lacking, many of those surveyed said they’re interested in learning more about these topics, including international finance and related areas (19%).

For those who want to learn more about topics related to international finance, it’s because they’re generally interested in it (36%), and they believe it’s important knowledge to have as the world becomes increasingly interconnected (32%). Some want to learn more as either they (30%) or their child (22%) are hoping to travel internationally, or because it’s an area of their knowledge they think is lacking (27%). 

Whether parents want to learn more about international finance or other topics, one thing is abundantly clear: 72% want to further their financial knowledge to better help their children. 

New tools and services are sought after resources by parents 

Why this uptick in appetite for financial knowledge? Regardless of their confidence levels in different financial topics, 40% of parents surveyed shared concerns their kids will “outgrow” the advice they are equipped to give. 

This may be due to the changing nature of how we manage our finances, as nearly three-quarters (74%) of respondents believe it’s become more complicated since they were a child. When asked why they believe financial management has become more complicated, 48% of these respondents noted the internet makes it easy to search for financial information, but it’s hard to know what to trust. 

Ultimately, this hunger for knowledge is contributing to a thirst for information, as nearly half of parents surveyed (46%) believe they have more to learn about financial management. While there are a number of ways parents can go about this, the vast majority (79%) of parents said they’re open to new tools and resources to help them improve their financial knowledge, and nearly a quarter (22%) actively look for new services to use.

“Parents looking to grow their financial expertise don't have to go at it alone, especially those who want their kids to listen to them more. Leveraging tools built specifically to solve multifaceted financial problems, like international payments, is a great way to more easily navigate services that are traditionally challenging to understand,” said D’Mello. “With more financial information available now than ever before, it’s essential to work with providers that are established, affordable, convenient and transparent, especially when looking to move money internationally.”  

About the research

Talker Research surveyed American parents (aged 30+) split evenly with 100 per state. The survey was commissioned by Wise and administered and conducted online by Talker Research between Aug. 29 and Sept. 12, 2024.