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3 in 10 parents financially support their children during the pandemic: study



Parents continue to lend a helping hand to their children financially throughout the coronavirus pandemic.

In fact, 31% say they think they are supporting their children more now than they did before COVID-19, according to a new study from Bank of America.

The bank’s Preferred Insights: Hindsight is 20/20 Personal Finance Report consulted 2,000 “wealthy” Americans in the United States in fall 2020, including 1,456 current and future parents, and found that children, youth and not so young, depend on their mother’s or father’s money. .

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While nearly a third of parents told Bank of America that they supported their children financially, many also said they were prepared to pay for major expenses related to life events.

To be exact, 75% of current or future parents who responded to the survey said they would be willing to pay for their child’s college education and 74% said they would be willing to pay for their child’s wedding. child.

Daily living expenses were not as high on parents’ list, but almost half said they would be ready to help if their child needed it. For example, 49% said they would pay their child’s phone bill and 44% said they would pay their child’s rent.

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Although parents who took the Bank of America survey want the best for their children, more than three-quarters (77%) say there is a threshold.

Thirty percent of parents who agree that children should not depend on them forever believe that a child will not need financial assistance after receiving “good wages.”

Likewise, 27% believe that children can be cut financially after getting their first job.

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According to the Bank of America study, wealthy respondents aged 18 to 24 would have assets to invest between $ 50,000 and $ 1 million, while respondents over 25 would have assets to invest between 100,000. and $ 1 million.

These respondents, some of whom are already parents, say they learned about personal finances from their own parents.

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The top three topics about money taught to respondents were good deals (65%), saving money (64%), and writing checks or balancing check books (60%).

Wealthy parents or expectant parents weren’t the only groups who told Bank of America they wanted to teach their kids how to manage money. Eighty-three percent of all parents surveyed said they wanted to discuss money with their children.

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Some popular money management skills that parents said they want to teach their children include managing credit cards and credit card debt (92%), saving for retirement, and investing (90 %), developing payment strategies and financial habits when funds are low (89%) and setting a budget (88%).



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