Parents, Don’t Wait to Talk to Your Kids About Money Why Early Money Lessons Matter in the Financial Future Business Wire OMAHA, Neb. -- April 18, 2013 Talking to children about money isn’t always easy for parents, but Financial Literacy month is a great opportunity to initiate those conversations. And, parents, you’ll be doing your kids a big favor. Children whose parents spoke extensively to them about saving money are significantly more likely to think saving is important (80% vs. 69%) and more likely to be good budgeters (82% vs. 71%) than other children, according to a survey from TD Ameritrade Holding Corporation (NYSE:AMTD). And while parents may think their children will learn financial education in school, nearly half (46%) of children report that their parents are still the number one source for learning about financial responsibilities and money management (only 17% said school). “Parents can take advantage of the influence they have on their children to teach them some basic financial skills and ultimately help them establish good saving habits,” says Carrie Braxdale, managing director, investor services TD Ameritrade, Inc. (“TD Ameritrade”), a broker dealer subsidiary of TD Ameritrade Holding Corporation. “Research shows that parents who work with their children early to develop a financial plan and clearly set financial expectations can help better prepare them for financial success later in life.” TD Ameritrade offers these suggestions to help parents get the conversation started: Establish good savings habits early on *Encourage your kids to start saving early and regularly and teach them how to establish a good budget. Explain how to identify expenses and income as well as the difference between “needs” and “wants.” This will show what they can realistically afford and help them avoid getting into debt. Teach money lessons by doing, not telling *If your child asks for spending money, rather than just saying yes or no, establish a lending arrangement so they can live through the process – the experience will teach them better than just telling them what they should be doing. *Rather than just telling them, ask children to study up and report back on what they learned. Tell them to teach you about what an IRA or a 529 savings plan is for example. Put a carrot to it and reward them for a job well done. Discuss trade-offs *Take opportunities to illustrate what it means to make sacrifices for things they want. For example, if they want to buy a tablet, outline the cost, how much they have saved and how much they need, i.e. it costs $500, they have $200 saved and they still need to save $300 more to get it. What will they need to give up in order to earn the additional $300 to purchase the tablet? Share from your experience *Did you rack up too much credit card debt as a college student? Are you still paying off your student loans? Did you start saving for retirement too late? These are all valuable teaching opportunities for your kids. Think about the mistakes you made, the lessons you learned, and how you can use those experiences to teach them a better way. “One of the things we see with financial planning is that the ‘how’ is really important,” Braxdale continued. “The more we can teach our children the methodology and cost-benefits analysis when they are young, the more these lessons become muscle memory that they can use when they become adults and need to make important money decisions.” For more information on the free education tools that TD Ameritrade offers, visit TD Ameritrade’s education center https://www.tdameritrade.com/education.page. You can also follow the Company on Twitter, @TDAmeritradePR. AMTD-G Gen Z Survey Methodology 2,001 U.S residents participated in an online survey from April 27-May 1, 2012. The 2,001 survey respondents sample was drawn from major regions in proportion to the U.S. Census – New England (5%); Mid-Atlantic (16%), South (25%), Midwest (22%), Southwest (12%) and West (20%). In each region, approximately half of the respondents were male and half were female. The two primary groups included were: Gen Z = 1,001 (born 1990 to 1999) and Parents of Gen Z = 1,000 (has a child in their household aged 13 to 22). The statistical margin of error in this survey is ±3.1%. This means that in 19 cases out of 20, overall survey results for primary groups in the study (i.e., Parents of Gen Z vs. Gen Z) will differ by no more than 3.1% in either direction from what would have been obtained by measuring the opinions of all target group members born in the U.S. Head Research conducted this survey on behalf of TD Ameritrade Holding Corporation. About TDAmeritrade Holding Corporation Millions of investors and independent registered investment advisors (RIAs) have turned to TDAmeritrade's (NYSE:AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 37 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TDAmeritrade has time and again been recognized as a leader in investment services. Please visit TDAmeritrade's newsroom or www.amtd.com for more information. Brokerage services provided by TDAmeritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org). About Head Research Head Research is a division of Head Solutions Group (U.S.) Inc., a leading market research partner for Financial Services companies in North America. With offices in New York, Toronto, and Montreal, Head delivers the deep customer insights that increase institutional knowledge and propel business action. Head Research and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services. Contact: TD Ameritrade Holding Corporation For Media: Christina Goethe, 201-369-8541 Communications & Public Affairs firstname.lastname@example.org On Twitter @TDAmeritradePR or For Investors: Jeff Goeser,402-597-8464 Investor Relations & Finance email@example.com
Parents, Don’t Wait to Talk to Your Kids About Money
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