Are you talking to your children or grandchildren about saving and spending habits? According to a recent study done by TIAA-CREF, chances are you’re not talking to them as much as you could be. The study looked at grandparents and grandchildren and found that only 8 percent of grandparents are talking with their grandchildren about saving for college and spending habits, while 85% of those young adults say they are open to conversation. (Click here for TIAA-CREF’s report)
The study shows that the top topic grandchildren would like to talk about is their grandparent’s memories and past experiences. This is a huge opportunity to share your financial choices, both good and bad, and how those choices impacted your personal story.
One big concern on the minds of young adults is the cost of college, and that cost keeps going up. This report also shows that grandparents are largely unaware of the cost of college today. From the College Board Trends Pricing report for 2013-2014 (click here for the full report), a moderate, in-state 4-year public college cost around $100,000 while a private 4-year college education averages around $164,000.
Joseph Coughlin, Ph.D., director of the Massachusetts Institute of Technology AgeLab, who collaborated with TIAA-CREF on the study said, “When you empower children to understand financial decisions, they develop a lifelong sense of confidence and trust in themselves, helping them become successful adults.”
So, start having those conversations with your children and grandchildren. You have a big opportunity to make a positive impact on their future financial success.
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