Lesson Learned: Parents' Good Examples Key to Financial Preparedness

     Lesson Learned: Parents' Good Examples Key to Financial Preparedness

Genworth Releases First Edition of 'Psychology of Financial Planning' Research
Series

PR Newswire

RICHMOND, Va., Jan. 29, 2013

RICHMOND, Va., Jan. 29, 2013 /PRNewswire/ --A new Genworth survey finds that
Americans whose parents set good financial examples are more likely to be
among the 62 percent of Americans who have a financial plan and feel confident
in their financial future.

To view the multimedia assets associated with this release, please click:
http://www.multivu.com/mnr/54347-genworth-lesson-learned-parents-good-example-key-to-financial-preparedness

(Photo: http://photos.prnewswire.com/prnh/20130129/MM48782LOGO)

The first results of the Psychology of Financial Planning Survey, released
today by Genworth, are part of a series of research findings that will be
issued throughout 2013. The purpose of the survey was to gain insights into
the psyche of Americans about what prompts or restricts them from planning for
their financial futures.

"One of Genworth's main goals in conducting this research is to figure out how
we can best help consumers prepare for important financial events that will
occur in their lives," said Pam Nelson, Genworth director of Customer
Insights. "Often consumers are so focused on their immediate financial
situations that it causes a mental blockthat prevents them from preparing for
their financial futures. We are hoping to better understand and address
consumer needs and fears with innovative products and resources that can get
them on the road to financial success."

Surprisingly, younger Americans are taking steps early on to plan for their
financial futures and are just as likely as other age groups to have a
financial plan. Sixty-one percent of respondents ages 25 to 39 have a
financial plan, compared with 61 percent of respondents age 40 to 50 and the
63 percent of respondents over the age of 60 with a plan. The finding is
particularly insightful given the economic turmoil of the past several years,
from the Great Recession to the Fiscal Cliff, indicating younger people have
taken heed.

"Since younger adults are characterized as living in the here and now, it
might seem surprising that they are putting so much emphasis on long-term
financial planning. However, their current generation's foundational years
are occurring in a period of economic hardship and decline which is shifting
this paradigm," said Dr. Barbara Nusbaum, a New York-based psychologist and
money coach.

Parental Examples: The Apple Doesn't Fall Far From the Tree

When explaining why people do and don't plan for their financial future, Dr.
Nusbaum said an important factor is that we learn our financial feelings,
attitudes and behaviors from our parents both through indirect teaching and
observation. The data confirms Dr. Nusbaum's psychological assessment with
more than six in ten (61 percent) respondents who believe that their parents
set a good example for them in terms of financial planning. Respondents with
good examples were more likely to have a financial plan and be confident in
their financial future:

                              Had parents that set    Didn't have parents that
                              good financial examples set good financial
                                                      examples
Have a financial plan         66 percent              55 percent
Feel confident in their       71 percent              53 percent
financial future
Fear not having enough money
to live comfortably in        33 percent              41 percent
retirement

Adds Olympic Gold Medalist and national Genworth spokesperson Wendy Boglioli,
a motivational speaker who champions financial and physical fitness: "Parents
play such a pivotal role for their children – financially, physically and
mentally – important life lessons that are passed on from generation to
generation.

"My parents did not have much money," she said. "In fact, my mom and dad
raised seven kids on $1.90 an hour for over 20 years. But they had a plan and
stuck to a daily budget. Their hard-earned money had to work for them in very
creative ways. Fortunately, my siblings and I learned to do the same thing."

While we internalize good and poor financial habits from our parents, Dr.
Nusbaum points out that even without parents who set good financial examples,
people can take it upon themselves to learn better financial habits and
develop a plan for their future. Dr. Nusbaum suggests the following tips to
help consumers get back on track at any
age:http://www.multivu.com/assets/54347/documents/54347-Financial-Planning-Tips-1.28.13-original.pdf.

Consumers can access the following survey to see how their financial planning
habits and confidence compare with others:
http://www.surveygizmo.com/s3/1136328/Financial-Planning-Survey

About the Study

Psychology of Financial Planning Survey is a national survey conducted by
Toluna and J&K Solutions on behalf of Genworth. The survey was administered
online from December 7-11, 2012. 1023 adults ages 25+ with a household income
in excess of $50,000 were surveyed. The survey holds a 95% confidence with 3%
margin of error.

Additional information about the survey, video content, tips and advice for
consumers, which can also be used by financial advisors to leverage with
clients, is available via our multimedia news release
http://www.multivu.com/mnr/54347-genworth-lesson-learned-parents-good-example-key-to-financial-preparedness.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance
holding company dedicated to helping people secure their financial lives,
families and futures. Genworth has leadership positions in offerings that
assist consumers in protecting themselves, investing for the future and
planning for retirement -- including life insurance, long term care insurance,
financial protection coverages, and independent advisor-based wealth
management -- and mortgage insurance that helps consumers achieve home
ownership while assisting lenders in managing their risk and capital.

Genworth has approximately 6,300 employees and operates through three
divisions: Insurance and Wealth Management, which includes U.S. Life
Insurance, Wealth Management and International Protection segments; Global
Mortgage Insurance, which includes U.S. and International Mortgage Insurance
segments; and the Corporate and Runoff division. Its products and services are
offered through financial intermediaries, advisors, independent distributors
and sales specialists. Genworth Financial, Inc., which traces its roots back
to 1871, became a public company in 2004 and is headquartered in Richmond,
Virginia. For more information, visit genworth.com. From time to time,
Genworth Financial, Inc. releases important information via postings on its
corporate website. Accordingly, investors and other interested parties are
encouraged to enroll to receive automatic email alerts and Really Simple
Syndication (RSS) feeds regarding new postings. Enrollment information is
found under the "Investors" section of genworth.com

Media –
www.genworth.com/presscenter

SOURCE Genworth Financial

Contact: Julie Westermann, +1-804-662-2423, julie.westermann@genworth.com;
Jessica Fuller (Prosek Partners), +1-212-279-3115 ext. 256, jfuller@prosek.com
 
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