There are significant differences in the way mothers and fathers
address money matters with their adult children. That is the core
finding of a
new report issued by Ameriprise Financial
.
The study looked at how mothers and fathers discuss finances
with their adult children, as well as how likely they were to lend
money to support their sons and daughters. According to the
results, boomer women are more likely to have regular conversations
about their money and health-care costs. But when it comes to
actually lending money to an adult child for a major purchase, men
tend to be the ones offering support.
Adult children benefit from boomer parents
Despite the differences between genders, virtually all boomer
parents surveyed reported providing some funds to their adult
children. The survey found 93 percent of baby boomers said they had
given their adult children financial support.
However, when it comes to major purchases, fathers are more
likely than mothers to open their wallets and share the wealth.
Ameriprise found the following percentages of men compared to women
were willing to help with their children's purchases and bills:
- Fund an automobile purchase: 58 percent vs. 48 percent
- Pay for their child's auto insurance: 51 percent vs. 43
percent
- Co-sign a loan or lease: 42 percent vs. 32 percent
- Make a car payment for their child: 37 percent vs. 29
percent
In addition, fathers were more likely than mothers to say they
would help an adult child buy a car or
pay off their credit cards
rather than contribute to their own retirement fund.
Women more willing to have money discussions
While men are more willing to share their money, women are more
likely to talk about it. When it comes to finances, health-care
costs and family issues, boomer women tend to discuss these issues
in greater percentages as compared to men. The trend seems to
continue to daughters, of whom 67 percent report regularly
discussing finances with family, as opposed to 59 percent of
sons.
One reason boomer women may be more likely to have these
discussions is concern for the future. Only 14 percent of mothers
say they are very optimistic about their financial future, as
compared to 21 percent of fathers. In addition, a mere 16 percent
of these women are very confident they will reach the
financial goals
they feel are important.
However, children appear to be returning the favor of their
parents' financial support by increasingly lending a hand to their
mothers and fathers. Daughters, in particular, have reported a
significant increase in the amount of financial support and
household help they provide their boomer parents. Two in three
daughters say they now provide some form of support to their
parents, as compared to 48 percent who said the same five years
ago.