Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
Futures fell after Trump said the U.S. will raise tariffs on more than $500 billion worth of Chinese imports, increasing trade tensions.Marketsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Education Minister Ong Ye Kung says the Singapore government has been preparing for the challenge of an aging workforce "for the past 20 years."Employmentread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
Despite Kudlow's expectations, China said on Saturday that it strongly opposes Trump's decision to levy additional tariffs on $550 billion worth of Chinese goods, and warned...Politicsread more
President Donald Trump said Sunday he was not happy after North Korea launched short-range ballistic missiles over the weekend.Politicsread more
Forget stuffing the trust fund. If you want your child to have a secure financial future, don't just focus on how much money you leave them, begin the financial discussion early with them, so they can learn how to manage their own money.
The new 2016 Parents, Kids & Money survey by T. Rowe Price found 68% of parents who discuss financial topics with their children,(ages 8-14), at least once a week are more likely to have kids who say they are smart about money. That's compared with 38% of parents who do not have financial discussions with their children.
Okay, but how do parents discuss financial topics with their kids? 85% of respondents said they generally just talk for a few minutes, as things come up. Only 15% of parents said they set aside a specific time to discuss money topics with their kids. 59% generally only talk to their kids about money when they ask about it.
Importance of Financial Discussions
Getting the conversation started seems to be a major hurdle.The survey found 71% of parents are reluctant to discuss financials matters with their children.
What are the most important topics for parents when it comes to talking with their children about their financial future?
*89% of parents highlight the importance of saving
*83% place emphasis on how to earn money
*80% focus on maintaining a budget and setting financial goals
*55% of parents say it's important to discuss giving to charity
*54% of parents believe it's important for their children not to talk about money in public
Who's more likely to bring up topics of finance? The survey found that boys ask about money more than girls. Also, men are more likely than women to discuss the importance of saving and spending wisely at least once a week, or more.
Talking to Boys & Girls
Parents also talked to their boys more than their girls about money, because boys asked more questions and seemed more interested. However, the survey also found 43% of parents thought their boys needed more help with their money, compared with 30% for girls.
Allowing Kids to Manage Their Finances
The report found 68% of parents allow their kids to decide what to save their money for and 67% let their kids decide what they spend their money on. About 30% of parents let their children manage their own accounts. But only 19% of parents have showed their own financial statements to their kids.
How old do parents think kids should be to get an allowance? 46% of parents believe the appropriate age is between 5 and 9. About 30% think kids should be between 10 and 14.
Amount of Allowance
The majority of parents believe they will give an allowance, but their kids have to earn it. Men are more likely than women to give allowance.
*61% of parents give their kids $10 or less a week
*18% give their kids $11 to $20 a week
*20% give their kids $21 or more per week
How much of their allowance do kids save?
*9% save none of it
*25% save less than half of it
*29% save half of it
*22% save more than half of it
*15% save all of it
As you can see, there's a lot of diversity when it comes to how to teach your children about money. No one way is going to best for everyone, but you starting early and often seems to be the best plan.