Parents

Many individuals and families find themselves in a precarious financial situation these days, especially as the cost of receiving education increases,[1] housing prices rise,[2] and living expenses climb.[3] In all the hustle and bustle of just trying to survive financially themselves, some parents may be curious about or even become distraught when thinking about how they should prepare their children for a financial future. Some parents may try their best to have discussions about finances and actively teach their children, while others may label financial discussions as “adult topics” and try to shield their children from the stressful reality of money management.

The transition from adolescence to emerging adulthood is not only challenging for the emerging adult, but also for the parents navigating the constantly changing boundaries associated with it. Going from family rules and setting curfews for adolescents to lots of independence for college aged children, this change may not be an easy one for anyone involved.

The meaning and function of marriage in society has shifted in recent years. What used to be done for the purpose of childbearing and/or creating social and political ties binding two families together is now commonly done for the sake of romance and emotional connection. People are searching not only for a spouse, but for a soulmate—someone who can support their physical, temporal, and emotional needs.[1] Even though this shift has occurred, many couples still choose to expand their family by having children, yet little know of the impact this can have on their marriage. The choice to bear children can come with a significant decrease in marital satisfaction for new mothers.1, [2]

In a recent article, Dr. Ashley LeBaron-Black and colleagues[1] explored the association between parental financial education during a child's upbringing and the financial wellbeing of those children as they transition into emerging adulthood.   

If you’ve read anything on this website, you’ve learned that parents have a significant impact on their child’s thoughts, beliefs and behaviors surrounding money. Even emerging adults report how their parents’ actions are still impacting them. A recent study[1] by Dr. Joyce Serido and other researchers focused on how emerging adults retrospectively viewed how they were parented and how it affects their financial habits and personal wellbeing in their first year of college.

The phrase “we’re all family here” has become a modern-day workplace staple. Appealing to the need for human belonging, businesses with the best of intentions attempt to create a supportive, collaborative company culture. But the blurring of lines between personal and professional often comes at the expense of one to the other. Tasked with meeting the demands of two “families,” employees inevitably crack under pressure and may underperform in the home and/or workplace. Companies may see better results as they invest in their employees’ actual families, and here’s why:

In a world with information readily available at our fingertips, we often forget about the power of teaching within the home. For example, although children could Google any financial question, what and how they learn about money from their parents (called financial socialization) is the top predictor of their future financial wellbeing.1 The financial literacy gained through these processes will inevitably benefit children later in life as it is applied in emerging adulthood.2,3 Why do children learn more about money from parents than from peers, media, work, or other sources? The home is where children spend most of their time, and the groundwork laid there can have long lasting effects on children’s attitudes and behaviors. There are three primary ways that parents teach children about money: modeling, discussion, and experiential learning.4

How well do today’s emerging adults do when it comes to managing money? For the most part, not as well as we would hope. But that can change. A multi-generational, interview-based project was conducted to better understand what and how parents are teaching their children about finances. Based on the What’s and How’s of Family Financial $ocialization project, researchers have drawn numerous conclusions to assist parents in addressing and shrinking the gap between financially literate and financially illiterate emerging adults.[1]

When you are asked to donate at the cash register, do you do it? Your answer is likely the same as your parents’ answer to this question because children learn financial habits, like whether to donate or not, from their parents and often emulate what they’ve seen their parents do.

Having a child can bring a wave of emotions. As many parents can attest, some of these emotions might not be “positive” ones, however. Although estimates vary, around 1 in 5 fathers[i] and mothers[ii] in the United States may experience postpartum depression. In addition to the mental effect of women’s post-birth hormonal rollercoaster, mental health challenges might also result from seeking to balance work with new family responsibilities—all with a potentially varying sleep schedule.