A recent survey by GOBankingRates was done to uncover the best financial advice respondents learned from their dads growing up. The survey asked: What’s the best money advice you learned from your dad?
The responses — in order of most selected — were:
- Don’t spend money you don’t have. (34.4 percent)
- Pay your bills on time. (20.1 percent)
- Save for a rainy day. (18.5 percent)
- Don’t quit your job before you have another. (17.7 percent)
- No risk, no reward. Invest! (9.3 percent)
This study could shed light on how major financial crises in the fathers’ generations affected the way their children approach money management. Here are some excerpts from the survey analysis, focusing on Generations Y and Z (read the full survey results for analysis of other generations):
Studies have shown Gen Y is the best generation when it comes to saving money; the survey found that millennials also heeded their fathers’ advice about spending money. Gen Y participants were more likely than any other age bracket to select “don’t spend money you don’t have” as their fathers’ best money advice, at 32.2 percent.
Why? Millennials are the children of baby boomers — and, like their grandparents, weathered hard financial times in formative years. As Gen Y graduated college and entered the job market, the Great Recession was in full force; it’s no wonder millennials have learned to live within their means.
Generation Z is composed of young children, adolescents and teens on the cusp of entering adulthood. Many in this bracket are still counting on their parents’ financial support and have years ahead to map out their finances.
It comes as no surprise that more of these financially adventurous (yet parent-reliant) 18- to 24-year-old people have taken to heart their fathers’ money advice of, “No risk, no reward. Invest!,” at 14.8 percent, versus just 3.5 percent of respondents age 65 and older.
After all, as the youngest generation polled, members of Gen Z have the most time to take risks before starting to think seriously about retirement.