Parents, Don’t Wait to Talk to Your Kids About Money

  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
christina.goethe@tdameritrade.com
On Twitter @TDAmeritradePR
or
For Investors:
Jeff Goeser,402-597-8464
Investor Relations & Finance
jeffrey.goeser@tdameritrade.com
 
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