SURVEY FINDINGS
- Some parents save for the holidays: Over a third of parents (36%) save for the holidays throughout the year.
- And most overspend on the holidays: 62% of parents agree with the statement, “I spent more for my kids over the holidays than I should have.”
- Parents who overspend on holiday purchases are more likely to argue: 50% of the parents who overspent on the holidays argue about money with their spouse, while only 27% of parents who did not overspend argue about money with their spouse.
- A minority of parents have used retirement savings and emergency fund: 7% of parents have tapped their retirement savings to pay for holiday purchases, and 9% have used their emergency funds.
- Holiday spending prioritization: Some parents are prioritizing holiday savings over saving for long-term goals.
- Nearly a third (30%) of parents who do not regularly save for retirement do save regularly for holiday spending.
- Over a quarter (28%) of parents who do not regularly save for their kid’s college education do save regularly for holiday spending.
- 62% of parents who feel they set a good financial example for their kids don’t save for holiday spending throughout the year.
- Moms have better holiday saving habits than dads: Moms are more likely to save for holiday spending throughout the year, while dads are more likely to use inappropriate funds when it comes to paying for holiday spending.
- 40% of moms said that they save for the holiday season throughout the year compared with 32% of dads.
- 11% of dads said that they used an emergency fund during the holidays compared with 6% of moms.
- 11% of dads have used retirement savings to pay for the holidays compared with only 3% of moms.
ABOUT THE SURVEY
The seventh annual T. Rowe Price Parents, Kids & Money Survey, conducted by MarketTools, Inc., aimed to understand the basic financial knowledge, attitudes, and behaviors of both parents of kids ages 8–14 and their kids ages 8–14. The survey was fielded from January 20, 2015, through January 27, 2015, with a sample size of 1,000 parents and 881 kids ages 8–14. The margin of error is +/- 3.1 percentage points. All statistical testing done among subgroups (e.g., boys versus girls) is conducted at the 95% confidence level. Reporting includes only findings that are statistically significant at this level.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ-GS: TROW) is a global investment management organization with $725.5 billion in assets under management as of September 30, 2015. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com or our Twitter, YouTube, LinkedIn, and Facebook sites.