About 95% of parents say they are confident that their children will achieve their financial goals, but only 5% of young adults express that kind of confidence about themselves.
Wells Fargo & Company, San Francisco, has published those figures in a summary of a recent survey that included 1,000 parents, and 600 of those parents’ adult children.
The children who participated were ages 18 to 22.
Although the children expressed less confidence about their personal finances, the parents expressed more concern about the economy.
- Only 22% of the young adults were afraid of not having enough money to finish college, compared with 46% of the parents.
- 38% of the young adults were concerned about finding a job, while 52% of the parents had concerns about their kids finding jobs.
- 21% of the young adults were concerned about the U.S. stock market, versus 41% of the parents.
Wells Fargo also asked about participants’ understanding of common financial terms and concepts.
About 23% of the young adults knew what a 401(k) plan is, and 31% were familiar with the concept of compound interest.
About 73% of the parents were familiar with 401(k) plans, and 64% knew about compound interest.