FRANKFURT (dpa-AFX) When it comes to money, young people predominantly trust their parents. In a survey conducted by fund provider Union Investment, almost three-quarters (71 percent) of the 1,006 respondents born between 1995 and 2012 said that their parents play "an important role" when it comes to financial issues and investment topics.
When it comes to questions about stocks, investment funds, or ETFs, 18 percent of Gen Z consider their parents' home to be the most important source of information, ahead of bank advice (15 percent) and social media (12 percent).
Parents see themselves as their children's financial coaches
Regardless of their own level of knowledge, the parent generation also sees itself as by far (89 percent) the most important source of advice for their children on financial matters. The survey was conducted in April and May of this year and included 1,021 women and men born between 1960 and 1990 with one or more children who belong to Gen Z. Nearly a quarter (24 percent) of the younger generation trust the investment advice they receive from their parents the most.
But financial knowledge is often patchy
However, economist Oscar Stolper from the University of Marburg, who conducted the study on behalf of Union Investment, identified significant gaps in knowledge: on average, only just over half (54 percent) of all parents surveyed were able to answer at least two out of three questions correctly about investing in stocks and funds. Forty-six percent answered none or only one question correctly.
Stolper's conclusion: "If wealth creation depends on the financial knowledge of parents, many children lack a solid starting point." This is because children often copy their parents' investment behavior. Financial education must "go beyond conversations at the kitchen table."/ben/DP/zb
