| FOR IMMEDIATE RELEASE Jan. 13, 2010 |
Contact: Mark Leach Media Relations 817-569-2419 msleach@firstcommand.com www.firstcommand.com |
 Print-friendly PDF(95 KB) |
Financial Advisors urge parents to dispel common money myths, First Command reports
Survey results reveal myriad ways advisors teach their own children about money
FORT WORTH, Texas – As Americans continue to adopt a new frugality in their financial lives, Financial Advisors are encouraging parents to teach these same values to their children by dispelling the common money myths that have been at the root of many of our nation’s recent financial troubles, according to First Command Financial Services, Inc.
A survey of more than 340 First Command Financial Advisors reveals that respondents believe parents who want to foster financial responsibility in their children should emphasize several potentially destructive financial myths as being not true, including:
- “I need to make more money before I can start saving.”
- “I’m too broke to invest.”
- “I shouldn’t deprive myself now by locking my money for decades in retirement savings.”
“These results drive home the importance that financial professionals place on teaching children sound financial habits,” said Terri Kallsen, CFP® and executive vice president of strategic development at First Command. “Financial Advisors are particularly attuned to the wonderful teaching moments that arise from real-life experiences, such as this current period of economic turmoil and the challenges of responsible holiday spending. As both a CERTIFIED FINANCIAL PLANNER™ professional and a parent with three kids at home, I find these experiences are a great place to start in helping our children understand the complexities of personal finance and prepare for a financially responsible future.”
Seeking to help parents open the lines of communication, First Command is sharing advice that the company’s Financial Advisors deem most important for fostering financial literacy and responsibility in their own children. The company recently commissioned a survey of its advisor force by Sentient Decision Science, LLC, a full-service behavioral research firm that also produces the First Command Financial Behaviors Index™.
When asked what single, best piece of advice they would give parents who want to teach their children about financial issues, advisors mentioned:
- Be a good financial role model for your children (i.e. lead by example)
27 percent - Start teaching your children about finances at an early age
19 percent - Have children take some responsibility for managing their own finances
15 percent - Discuss financial issues openly and honestly with your children
12 percent
First Command Financial Advisors think that spending without a budget is one of the most important issues plaguing children today. Sixty percent of advisors with children think that this is one of the major financial pitfalls children are susceptible to in the future, and the majority think that spending without a budget is the greatest financial mistake made by both teenagers (72 percent) and children in college or university (78 percent). As a result, 41 percent of Financial Advisors talk to their children about spending on a budget at least monthly, with 11 percent talking about this issue at least a few times a week.
Despite the nation’s recent economic troubles, advisors remain optimistic about the financial futures of their own children. More than 80 percent of advisors think their children are better prepared financially than other children. And 65 percent think their children will be better off financially in the future than they are.
“Due to the coaching nature of their profession, Financial Advisors are well equipped to instill sound money behaviors in their children,” Kallsen said. “But all parents can learn from these financial professionals and point their own children toward a more financially secure future. By highlighting the topics and advice they share with their own children, our advisors are providing encouragement and support to all parents looking for help in teaching their kids about money.”
To learn more about talking to your children about money, check out the survey results at www.firstcommand.com/education.
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals
