t. rowe price's 2016 parents, kids & money survey

8TH ANNUAL PARENTS, KIDS & MONEY SURVEY—HOLIDAY SPENDING FINDINGST. Rowe PriceNovember 2016

Detailed Results

2

2%

30%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

I don't spend any money on the holidays

No

Yes

Saving for the Holidays

T. Rowe Price 2016 Parents, Kids & Money Survey N=1,086 (Total Respondents)

Q63. DO YOU NORMALLY SAVE FOR HOLIDAY SPENDING THROUGHOUT THE YEAR?

Millennial parents are more likely than Gen X and baby boomer parents to save throughout the year (83% vs. 67% vs. 50%)

Parents with more than one child are more likely to save throughout the year (72% vs. 58%)

3

3%

11%

11%

14%

24%

40%

56%

56%

0% 10% 20% 30% 40% 50% 60%

Other

Retirement savings

Payday loan

Emergency Fund

Tax refund

Regular savings

Credit cards

Current income

Paying for Holiday Spending

T. Rowe Price 2016 Parents, Kids & Money Survey N=1,060 (Spend on Holidays)

Q64. WHICH OF THE FOLLOWING HAVE YOU EVER USED TO PAY FOR HOLIDAY SPENDING?(CHECK ALL THAT APPLY)

25% select at least one

4

7%

9%

23%

35%

26%

0% 5% 10% 15% 20% 25% 30% 35% 40%

More than 12 months

7-12 months

4-6 months

2-3 months

I pay it all in the first month

Credit Card Holiday Spending

T. Rowe Price 2016 Parents, Kids & Money Survey N=588 (Use Credit Cards for Holiday Spending)

Q65. HOW QUICKLY DO YOU PAY OFF WHAT YOU SPENT ON CREDIT CARDS FOR HOLIDAY SPENDING?

A total of 16% of parents take more than six months to pay off credit card holiday spending

5

Holiday Spending


53%

58%

64%

74%

82%

0% 20% 40% 60% 80% 100%

I try to get everything on my kids’ lists, no matter how much it costs

I never stick to my holiday spending budget

I spent more over the holidays than I should have

I spend the same exact amount for holiday presents on each of my kids

It’s important to give to charity over the holidays

Q66. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS?(DISPLAYING PERCENT WHO AGREE)

Men are more likely than women to try to get everything on their kids’ lists (60% vs. 45%)

6

Holiday Spending—By Parent Age


33%

42%

54%

66%

80%

50%

58%

63%

72%

81%

75%

69%

75%

84%

88%

0% 20% 40% 60% 80% 100%

I try to get everything on my kids’ lists, no matter how much it costs

I never stick to my holiday spending budget

I spent more over the holidays than I should have

I spend the same exact amount for holiday presents on each of my kids

It’s important to give to charity over the holidays

Millennial

Gen X

Baby Boomer


Three-quarters of millennial parents try to get everything on their kids’ lists and spend more over the holidays than they should

7

13%

20%

36%

18%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40%

A lot more than last year

A little bit more than last year

The same as last year

A little bit less than last year

A lot less than last year

Holiday Spending Comparison


Q67. COMPARED TO THE YEAR BEFORE, WOULD YOU SAY YOUR HOLIDAY SPENDING THIS YEAR WAS:(INDICATE WHICH APPLIES)

8

34%

37%

29%

0% 5% 10% 15% 20% 25% 30% 35% 40%

$500 or more

$200 to $499

Less than $200

Amount Spent on Kid—Holiday Presents


Q68. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON HOLIDAY PRESENTS?

Mean: $422Median: $300

9

Kid Responses


69%

87%

0% 20% 40% 60% 80% 100%

My parents encourage me to give money to charity

My parents encourage me to donate clothes or toys to charitable causes (e.g.,Goodwill, Salvation Army, Toys for Tots, etc.)


RESPONDENT PROFILE

11

49%51%

Respondent Profile

26%

25%

25%

24%

South

Northeast

West

Midwest

Q2. REGIONQ1. AGE Q3. GENDER

MenWomen

Q5. HOUSEHOLD INCOME

76%

11%

9%

4%

1%

Married

Separated/Divorced

Single

Married (same sex)

Widow/Widower

Q4. MARITAL STATUS

29%

58%

13%

< 35

35–50

51+

30%

38%

32%

< $50K

$50K–$99,999

$100K+

74%

16%

9%

5%

2%

White/Caucasian

Hispanic/Latino

Black/AfricanAmerican

Asian

Native American

Q6. RACE/ETHNICITY

T. Rowe Price 2016 Parents, Kids & Money SurveyN=1,086 (Parents: Total Respondents)

12

Respondent Profile

Q7. EDUCATION LEVEL

64%

14%

9%

4%

4%

3%

2%

Employed full time

Stay-at-home parent

Employed part-time

Self-employed

Unemployed

Retired

Student

Q8. EMPLOYMENT STATUS

2%

11%

21%

12%

33%

21%

< HS graduate

HS graduate

Some college

Assoc. degree

Bachelor's degree

Graduate degree

28%

42%

19%

11%

1

2

3

4+

Q9. # KIDS IN HH

51%49%

Q11. KID GENDER

BoysGirls

Q12. KID AGE

10%

14%

16%

13%

14%

19%

14%

8

9

10

11

12

13

14

T. Rowe Price 2016 Parents, Kids & Money SurveyN=1,086 (Parents: Total Respondents); N=1,086 (Kids: Total Respondents)

80%

15%

5%

Biologicalonly

Non-biolgical

only

Mix

TYPE OF KIDS

13

Respondent Profile

25%

53%

17%

4%

1%

None

One

Two

Three

Four +

# BOYS IN HOUSEHOLD# KIDS IN HOUSEHOLD

KID GENDER MIX

28%

42%

19%

11%

One

Two

Three

Four +

21%

25%

54%

Girls only

Boys only

Boys and girls

T. Rowe Price 2016 Parents, Kids & Money SurveyN=1,086 (Parents: Total Respondents)

# GIRLS IN HOUSEHOLD

22%

51%

21%

5%

2%

None

One

Two

Three

Four +

14

Respondent Profile

75%

22%

3%

None

One

Two +

# KIDS 8 – 14 IN HH# KIDS < 8 IN HH

KID AGE MIX

25%

53%

42%

19%

11%

None

One

Two

Three

Four +

29%

52%

3%

16%

8-14 only

8-14 and younger

8-14 and older

8-14 and both

T. Rowe Price Parents, Kids & Money SurveyN=1,086 (Parents: Total respondents)

# KIDS > 14 IN HH

63%

30%

6%

1%

One

Two

Three

Four +

OBJECTIVE & METHODOLOGY

16

Objective and Methodology

Objective

To understand the basic financial knowledge, attitudes, and behaviors of both parents of children ages 8 – 14 and their children ages 8 – 14.

Methodology

T. Rowe Price commissioned an online survey of parents of children ages 8 – 14 and their children ages 8 – 14 .

The survey was fielded from 2/4/16 to 2/11/16, with parent quotas of approximately 50% men and 50% women.

A total of 1,086 parents and children ages 8 – 14 in the U.S. participated; the sampling error for a sample of 1,086 is +/- 3% at the 95% confidence interval.

The survey was fielded through MetrixLab, Inc.

T. Rowe Price 2016 Parents, Kids & Money Survey

t. rowe price's 2016 parents, kids & money survey

Economy & Finance