According to the T. Rowe Price Parents, Kids & Money Survey, parents on average grade themselves a B- when it comes to their total understanding of basic saving and investing concepts such as setting goals, the importance of saving, spending smartly, inflation, and diversification. The study of 504 parents nationwide also revealed that 60 percent of parents feel that financial discussions do not happen nearly enough, and more than half are worried they could be doing more to prepare their children to be financially competent by the time they turn 18.

Although the current economic conditions have served as a catalyst to encourage nearly half of parents to have more conversations with their kids about money, the survey revealed that more than half of parents feel they have to periodically reinforce money lessons because their kids quickly forget them.

Regular occurrences such as giving an allowance, shopping together, getting birthday money, or balancing a checkbook are ideal times to impart basic financial lessons, especially around setting goals and spending wisely. However, according to the survey, most parents do not always leverage these occasions. Nearly half of parents neglect to utilize receiving money as a gift as a teachable moment and the majority do not always capitalize on shopping or grocery store trips as opportunities to have a conversation about money and finances. In addition, 41% of parents who give their children an allowance report that they always or sometimes come back for more money after it runs out.

Other survey findings include:

• Piggy Banks Help Teach Kids About Money - 85% of parents report that their child has a piggy bank, and nearly all say that having one sets a good example about the importance of saving. A majority of parents say the decision to take money out is shared, while nearly a third say the decision rests with the child alone.
• Financial Conversations are a Shared Responsibility - More than two-thirds of parents say that speaking to children about money is a shared responsibility. However, when one parent is solely responsible, the task falls on the mother nearly two-thirds of the time.