Another significant area where parents’ perceptions diverge is how young adults view money. Parents may not be as aware as they should be as their children look to the future and take steps to accomplish longer-term financial goals.
Read more: Most Gen Z homebuyers are tapping their savings for down payments
Although one-third of young adults (32%) are saving for a home and one-fifth (19%) are building up their retirement nest egg, only 23% and 12% of parents, respectively, believe they are.
While most young adults (83%) believe that having a stable financial situation is important for overall happiness, roughly the same percentage (83%) think that they need more support and guidance when it comes to managing their money, and 68% say they feel overwhelmed and in need of assistance.
However, parents tend to underestimate these emotions in young adults. This underlines a critical window of time for parents to get involved early in their children’s financial lives and lessen some of the stress that comes with attempting to plan their financial future.
