Who is more “old school” in teaching children fiscal responsibility? A new investor survey conducted by Millionaire Corner finds that younger parents are more hard-core in instilling in children a strong work ethic and a respect for responsible money management.
Students who do not think they should have to pay for their own college education, for example, will find a more sympathetic ear from seniors. Just over a third (36 percent) of those over 60 agrees with that statement compared with 50 percent of those under 40.
Regardless of age, hard work, education, and frugality are the top three factors to which households with a net worth between $100,000 and $1 million (not including primary residence) attribute their success, according to a 2011 Millionaire Corner wealth level study. Nearly 60 percent of these investors rank the financial situation of their children or grandchildren as their biggest personal concern.
On one thing all of the age groups agree: it is important for children to receive an allowance to learn about the value of money, although those 60 and up are particularly adamant on the subject. More than three-quarters (76 percent) agree with this opinion compared with just over 63 percent of those under 40.
With millions of parents struggling in this sluggish economy, a commitment to teach their children fiscal responsibility is admirable, and, according to Charles Schwab’s 2011 Teens and Money Survey, probably necessary. Fewer teens, for example, know how to write a check and balance a checkbook than four years ago.
Of the respondents to our October survey, just over 54 percent of those under 40 think it is important for high school students to have a minimum wage job compared with 47 percent of those over the age of 60. Conversely, nearly 42 percent of those ages 60 and up believe that it is important for students to not work during high school and instead focus on academics and extra-curricular activities vs. 33 percent of those under 40.
For most families, college looms as one of the biggest financial challenges. The average total of debt per student in the class of 2011 will be around $23,000. On this matter, too, respondents under 40 and 60 and over, are in virtual agreement (41.5 percent and 38.6 percent, respecitively) that it is important for students to graduate from college debt-free.