National Survey Reveals Lifelong Influence of Debt DNA
Children learn a lot from parents, including saving and spending habits.
A recent survey of 811 Americans, commissioned by the national nonprofit organization, CESI Debt Solutions, found similarities between the saving/spending habits of adults and their childhood experience with money. 49% of those surveyed say they grew up in house with frugal parents or whose parents taught them about money. 47% were given an allowance growing up. 46% save money on a regular basis.
“Debt DNA is a term we use to describe how people’s money habits are influenced by their parents’ actions as well as the culture/environment they grew up in,” explains Neil Ellington, VP of CESI Debt Solutions. “There are multiple factors that influence how we spend money but very often our counselors find clients either forgot the money lessons they learned as a child or circumstances such as a job loss or medical crisis forced them to abandon what their parents taught.”
• 73% were told by their parents the family could not afford something because of money issues.
• 78% say they grew up in a home where they knew money was tight but it wasn’t always talked about.
• 75% were told they needed to wait a while to get something they wanted.
• 45% say they are saving for a rainy day or the comfort of knowing there is money for an emergency.
• 70% consider themselves thrifty or at least careful spenders
What the experts say
“While it is encouraging people know about the importance of saving, the reality is many people need to do a better job of saving,” adds Ellington. “The wise saying of pay yourself first, putting a regular portion of your paycheck into savings, is as true today as when our parents taught it.
The great recession reminded everyone of that.”
For more information about CESI Debt Solutions, please visit: http://www.cesidebtsolutions.org