2024
9
US Family Finance Market Report 2024
2024-05-06T23:01:48+01:00
REPF8FC472F_DCDE_4AC5_8D64_24E72449DC0E
3695
172815
[{"name":"Personal Finance","url":"https:\/\/store.mintel.com\/industries\/finance\/personal-finance"}]
Report
en_GB
Parents are broadening the financial guidance they give to their children, de-emphasizing savings in favor of a more comprehensive discussion of credit and debt. Patrick Rahlfs, Senior Research Analyst…

US Family Finance Market Report 2024

£ 3,695 (Excl.Tax)

Report Summary

This report explores the dynamics of finances within the family, particularly between adults and their parents and vice versa. How comfortable are families discussing finances? What advice is often given or received, and how does this impact borrowing and spending?

Below, we’ve summarized the core topics analyzed and provided hand-selected findings from the report.

Core Topics Analyzed

  • Market drivers impacting family finance situations.
  • Financial guidance that current adults received from their parents.
  • Financial guidance that current parents are giving to their children.
  • Comfort that consumers have in financial interactions with parents.
  • Comfort that parents have in financial interactions with adult children.
  • Forms of financial support that consumers receive from parents.

US Family Finance Insights

Parents continue to teach and provide financially

Parents in the United States are now more actively teaching their children about a broader range of financial topics, including debt and credit, as opposed to the previous generation’s singular focus on savings. This shift is in response to the rising consumer debt and the inaccessibility of major purchases like homes due to affordability issues.

Adults also continue to receive financial support from their parents, with nearly 80% of individuals aged 35-44 receiving financial assistance from their parents in the past two years. Housing affordability challenges and persistent inflation are key reasons for this continued trend, as urban consumers rely more heavily on parental help for daily expenses and large purchases.

Younger consumers are changing the landscape

Millennials and Gen Z consumers are seeking flexibility in financial products and services. They express a desire for family plans that go beyond the traditional nuclear family structure and accommodate different familial arrangements. This reflects the changing demographics where marriage and childbearing are occurring later in life, and the financial strain of child-rearing is influencing young adults’ financial outlooks.

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Meet the Expert

Patrick joined Mintel in 2018 and has extensive experience as a custom research analyst focused on the financial services industry, specializing in presenting data trends within the credit card and banking sectors. He specializes in creating insights at the intersection of consumer behaviors and the financial services competitive landscape.

Parents are broadening the financial guidance they give to their children, de-emphasizing savings in favor of a more comprehensive discussion of credit and debt.

Patrick Rahlfs - Finance Analyst for Mintel
Patrick Rahlfs
Principal Analyst – Financial Services

Table of Contents

  1. Executive Summary

    • What you need to know
    • Financial education is becoming more well-rounded, touching on debt and investing
    • Graph 1: financial guidance of current parents vs previous generation’s parents, 2024
    • Parental financial support often remains until consumers’ 40s
    • Many young parents do not regularly discuss finances with a partner
    • Graph 2: regular financial discussion with a partner, by parental status, 2024
    • Young women are less satisfied with the financial education they have received
    • Graph 3: consideration of parents as good financial role models, by age and gender, 2024
    • Market predictions
    • Opportunities
    • Investment brands can provide teens with an approachable start
    • Lower-income consumers require savings support
    • Graph 4: financial guidance of current parents, by household income, 2024
  2. Market Dynamics

    • Market context
    • Market drivers
    • Distribution of wealth has shifted toward elderly consumers
    • Graph 5: distribution of household wealth, by age, 2003-23
    • The Great Wealth Transfer looms
    • More than 50% of debt is held by consumers below the age of 50
    • Graph 6: share of debt balance, by age, Q4 2023
    • Inflation remains above 3% in early 2024
    • Graph 7: Consumer Price Index, 2018-24
    • Family milestones exist on more protracted timelines
    • Graph 8: estimated median age of Americans at their first wedding, by gender, 2008-22
  3. Consumer Insights

    • Consumer fast facts
    • Financial guidance from previous generation
    • Many consumers learned the importance of saving from parents, but received limited financial education
    • Graph 9: financial guidance that consumers received from their parents (the previous generation), 2024
    • Older generations were more likely to receive an allowance, learn savings
    • Graph 10: savings behaviors from parents, by generation, 2024
    • Younger consumers’ parents were more open about finances and budgets
    • Graph 11: financial guidance from parents, by generation, 2024
    • Young men were more likely to be introduced to investing concepts as children
    • Graph 12: introduction of investment concepts by parents, by gender and age, 2024
    • Young men were more likely to be introduced to investing concepts as children
    • Men are receiving better financial education, but women are not
    • Graph 13: parents as good financial role models, by age and gender, 2024
    • Parental examples seem to have a clear impact on financial situation
    • Graph 14: perceptions of parents as financial role models, by financial situation, 2024
    • Financial guidance of current parents
    • Current parents are more active in financial education
    • Graph 15: financial guidance by current parents toward their children, 2024
    • Debt and credit has become a greater focus
    • Graph 16: financial guidance of current parents vs previous generation’s parents, 2024
    • Parents often wait until teen years to introduce debt/credit concepts
    • Graph 17: financial guidance of current parents, by age of their children, 2024
    • More than half of parents of adult children openly discuss household finances
    • Graph 18: open discussion of family finances, by age of children, 2024
    • Higher-earning households are much more likely to discuss credit, investments
    • Graph 19: financial guidance of current parents, by household income, 2024
    • Asian consumers are much more likely to save on their children’s behalf
    • Graph 20: financial guidance of current parents, by race, 2024
    • Comfort discussing finances with parents
    • Consumers are largely comfortable discussing finances with their parents
    • Graph 21: comfort discussing financial topics with parents, 2024
    • Older consumers are uncomfortable borrowing from parents
    • Graph 22: comfort lending and borrowing from parents, by generation, 2024
    • Men are more comfortable discussing finances with parents
    • Graph 23: comfort discussing finances with parents, by gender, 2024
    • Hispanic consumers are most likely to seek financial guidance from parents
    • Graph 24: comfort with financial discussions with parents, by race, 2024
    • Comfort discussing finances with adult children
    • Parents are willing to discuss finances with kids, but don’t want to ask for help
    • Graph 25: comfort toward financial topics with adult children, 2024
    • Black and Hispanic consumers are more comfortable receiving help from adult children
    • Graph 26: comfort receiving financial help from adult children, by race, 2024
    • Higher-earners are willing to discuss inheritance planning, but not general advice
    • Graph 27: comfort having financial discussions with adult children, by household income, 2024
    • Recent financial help received from parents
    • Nearly one in three consumers recently received help from parents on daily expenses
    • Graph 28: financial help from parents received in the past two years, 2024
    • Young men are more likely to receive help on large purchases
    • Graph 29: recent financial help received from parents, by age and gender, 2024
    • $75K – $100K income consumers receive the most help on large purchases
    • Graph 30: recent financial help received from parents, by household income, 2024
    • Nearly half of struggling/in trouble consumers rely on parents for help with expenses
    • Graph 31: recent help from parents on day-to-day expenses, by financial situation, 2024
    • Consumers in urban areas depend on more help from parents
    • Graph 32: portion of consumers that received recent financial help from parents, by area, 2024
    • Parental help remains common through consumers’ mid-40s
    • Graph 33: financial help received from parents in past two years, by age, 2024
    • Attitudes toward family finances
    • Consumers are split on whether financial education is the responsibility of parents
    • Mothers are more likely to support bank-provided educational resources
    • Graph 34: attitudes toward financial education, by parental status, 2024
    • Consumers above the age of 55 more regularly discuss finances with partners
    • Graph 35: regular discussion of finances with partner, by age, 2024
    • Younger parents often do not discuss finances with each other
    • Graph 36: regular discussion of finances with partner, by parental status, 2024
    • Younger consumers want more flexible family plans
    • Graph 37: attitudes toward definition of family plans, by generation, 2024
    • Financial behaviors of parents
    • Most parents prefer their children not to use debit/credit cards
    • Graph 38: attitudes toward children’s card usage, 2024
    • Mothers are more hesitant toward their children’s card usage
    • Graph 39: parental attitudes toward card usage and messaging, by gender, 2024
    • Most parents are hesitant toward outreach from financial brands toward children
    • Graph 40: parental attitudes toward children interacting with financial services brands, 2024
    • Black consumers are less comfortable with brands directly reaching out to children
    • Graph 41: attitudes toward children’s interaction with finances on platforms they use, by race, 2024
    • Higher-income consumers are more likely to have children initiate financial conversations
    • Graph 42: financial conversations initiated by children, by household income, 2024
    • Many parents are preparing for their children to stay at home into adulthood
  4. Innovation and Marketing Trends

    • Marketing and advertising
    • Fidelity introduces its Fidelity Youth App with a $50 sign-up bonus
    • Greenlight’s paid social ads highlight parental testimonials
    • New York Life seeks to create a culture of wealth generation
    • Venmo touts freedom for teens, support for parents
    • Opportunities
    • Highlight simplicity
    • Educate parents about the flexibility of 529 plans
  5. Appendix

    • Consumer research methodology
    • Generations
    • Abbreviations and terms

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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