When it comes to your parents’ finances, there are some things you may not know. For starters, your parents may be richer than you realize! In a recent study, more than half of the parents who have more than $3 million dollars in assets haven’t told their kids just how wealthy they are. And another 15 percent won’t even admit they’re well off. Often, they think there’s plenty of time to talk about money later.
But another reason your parents aren’t upfront about money? Because you may not be in the will. That’s one of the biggest reasons parents won’t admit how much they’re worth. The truth is, 49 percent of parents say it’s not important to leave money to their kids, because they’ll do fine on their own. And they plan to give their money to charity.
Our parents may also be the reason we’re not good at managing our money. The truth is, 42 percent of us pick up our money habits from our parents. And we think we learned good stuff. But more than half of us don’t have a budget. One quarter of us don’t pay our bills on time. And one-third of us don’t save at all, for retirement or emergencies.
The final financial fact: You may not know that you’re ruining your parents’ retirement. That’s because 60 percent of parents provide financial support for adult children. Even though most of them can’t really afford it. The truth is, one quarter of parents have taken on more debt to help their kids. And 7 percent have postponed their retirement because they can’t stand to watch their kids struggle financially.