TEACHING CHILDREN ABOUT INVESTING

According to the Visa International Financial Literacy Barometer 2012 survey how do Americans rank when it comes to financial literacy?

According to a survey of parents from many countries, commissioned by Visa International, in conjunction with Kiplinger's, Americans ranked fourth overall when it comes to financial literacy, finishing behind Mexico, Brazil, and Australia. In the study, which surveyed residents of 28 countries, respondents were asked questions to measure how often parents discuss financial matters with their children, whether teens and young adults under their care were adequately prepared to manage their own money in adulthood, and how well parents manage their own financial affairs. A majority of respondents believed their children did not understand basic financial management practices such as expense budgeting, savings, debt management, and responsible spending habits. Over 70% of U.S . respondents agreed they could do a better job of teaching their children these basic financial lessons.

How much time do American parents spend discussing financial matters with their children?

According to the same Financial Literacy survey, American parents spend approximately 26 days a year discussing financial matters with their kids. In comparison, Mexican parents spend an average of 42 days per year, and Brazilians spend approximately 38 days per year.

How often do parents engage their children in discussing financial matters, such as saving and spending?

According to the Fourth Annual Parents, Kids & Money Survey published by T. Rowe Price, 76% of parents and 67% of children report that they have had conversations on the importance of saving and spending at least somewhat often, but only 32% of parents are having these types of conversations very often.