College of Human Ecology
Office of the Dean
RW-246 Rivers Building
East Carolina University
Greenville, NC 27858-4353
252-328-1098
www.ecu.edu/che
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PN/ November 2, 2010
Contact:
Peggy Novotny, Director of Marketing and Communication
252-328-2882,
FOR IMMEDIATE RELEASE
Many parents don’t do enough to teach their children financial literacy
Greenville, NC (November 2, 2010)—Many young adults believe they should have received more knowledge about finances from their parents. A study in the current edition of Family Relations: Interdisciplinary Journal of Applied Family Studies examines the influence parents have on college students’ financial knowledge, financial attitudes, and financial behaviors.
Researchers Bryce Jorgensen of East Carolina University and Jyoti Savla of Virginia Polytechnic Institute and State University surveyed 420 college students to see how much the students were influenced by their parents in money matters. Using a survey designed by Jorgensen and used internationally, the researchers learned that parents influenced the students’ financial attitudes and behaviors but not their financial knowledge, even though 67% of the students said they expected to learn financial knowledge from their parents. The students also said that their lack of financial knowledge (average scores 58%) influenced their financial attitudes, which in turn influenced their financial behaviors.
Other findings showed that parents with higher incomes tended to have more positive influence on their children, and their children had better financial attitudes and behaviors. Further, students’ financial knowledge, attitudes, and behaviors increased from freshman to senior year, indicating that their financial literacy improved due to maturation and experience rather than parental influence.
“Money tends to be more of a taboo subject in the home than discussions about sex,” said Jorgensen. “This is very problematic, especially in today’s economic climate where the individual savings rate has declined and debt, bankruptcies, and unemployment have increased. The lack of desire or inability of parents to communicate with their children about finances needs to change. Young adults with the highest financial literacy scores came from homes where their parents both modeled and discussed financial issues.”
Jorgensen believes the study has implications for parents, financial aid offices, student affairs professionals, administrators, Cooperative Extension and other educators. “Students must gain the financial literacy needed to be financially responsible adults in this increasingly complex economy,” said Jorgensen. “Since many parents may be financially illiterate themselves, any program to financially educate the students might also consider a component to educate parents. Increasingly, parents’ financial literacy and their capacity to teach finances to their children will increase the financial literacy of young adults.”
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Bryce Jorgensen, PhD, is with the Department of Child Development and Family Relations at East Carolina University. Jyoti Savla, PhD, is with the Center for Gerontology and Department of Human Development at Virginia Polytechnic Institute and State University.
A .PDF of the article in its entirety may be acquired by contacting Dr. Bryce Jorgensen at .
The East Carolina University Department of Child Development and Family Relations is within the College of Human Ecology. The College educates professionals who enhance the well-being of people and communities. Through research, service, and outreach, each academic discipline strives to improve the relationship between people and their environments. For more information on the Department of Child Development and Family Relations, visit www.ecu.edu/che/cdfr.
Contact
Bryce L. Jorgensen, PhD
Assistant Professor
Department of Child Development and Family Relations
College of Human Ecology
East Carolina University
Ph. 252-737-2074