{"id":835920,"date":"2025-04-10T06:41:26","date_gmt":"2025-04-10T10:41:26","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/new-research-from-ameriprise-financial-parents-finances-explores-the-unique-financial-decisions-and-competing-priorities-parents-face-throughout-their-childrens-live\/"},"modified":"2025-04-10T06:41:26","modified_gmt":"2025-04-10T10:41:26","slug":"new-research-from-ameriprise-financial-parents-finances-explores-the-unique-financial-decisions-and-competing-priorities-parents-face-throughout-their-childrens-live","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/new-research-from-ameriprise-financial-parents-finances-explores-the-unique-financial-decisions-and-competing-priorities-parents-face-throughout-their-childrens-live\/","title":{"rendered":"New Research from Ameriprise Financial \u2013 Parents & Finances \u2013 Explores the Unique Financial Decisions and Competing Priorities Parents Face Throughout Their Children\u2019s Lives"},"content":{"rendered":"

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New Research from Ameriprise Financial \u2013 Parents & Finances<\/i> \u2013 Explores the Unique Financial Decisions and Competing Priorities Parents Face Throughout Their Children\u2019s Lives<\/b><\/p>\n

MINNEAPOLIS–(BUSINESS WIRE<\/a>)–
\nParents today are balancing competing priorities vying for their wallets and their heartstrings, with six in 10 concerned that the tradeoffs they\u2019re making daily will impact their financial future, according to a new study \u2013 Parents & Finances<\/i> \u2013 released today by Ameriprise Financial (NYSE: AMP). Nearly all respondents say parenthood brings them joy and purpose (96%) yet is harder than they expected \u2013 both emotionally and financially.\n<\/p>\n

\nThe silver lining: nearly nine in 10 (88%) parents who enlist professional help from a financial advisor to manage the tradeoffs say the advice was helpful in making decisions related to their children.\n<\/p>\n

\nThe Parents & Finances<\/i> study surveyed more than 3,000 American parents with at least one child age newborn to 30. Ameriprise commissioned the research to explore how these parents approach money as their children grow to understand their goals, concerns, and perspectives.\n<\/p>\n

Pressure of competing priorities<\/b><\/p>\n

\nParents reported the top goals \u2013 both in the near and long term \u2013 competing for their hard-earned dollars: saving for retirement (59%), paying for children\u2019s education (39%) and managing day-to-day living expenses (36%). Additionally, most parents (91%) place a high value on a family \u201cbucket list,\u201d with taking vacations together as the top item. Yet, more than half of parents (60%) are concerned that the tradeoffs they need to make among these varying priorities will impact their long-term financial goals.\n<\/p>\n

\nDespite the tradeoffs, the Ameriprise study revealed that parents are navigating financial decisions mindfully from the beginning of their decision to have a child through their adulthood. Eighty percent of parents factored their financial situation into the decision to have a child, and a similar percentage (89%) plan to pay for some portion of their children\u2019s college education. In fact, half (49%) started saving for college before their child turned five years old, with a portion starting before their child was born (9%).\n<\/p>\n

\n\u201cOur research confirms what most parents in the throes of caregiving are thinking: balancing family finances while juggling shifting priorities can feel challenging,\u201d said Deana Healy, Vice President of Financial Planning & Advice at Ameriprise. \u201cRegardless of net worth, most parents have a finite amount of money to allocate to their most important financial goals. We know from our work at Ameriprise supporting millions of parents that it\u2019s achievable to feel financially confident\u2013 it comes down to careful planning.\u201d\n<\/p>\n

Guilt is a struggle for the majority of parents<\/b><\/p>\n

\nThe Ameriprise study revealed that seven out of 10 parents (72%) experience parental guilt with more than a third (35%) putting pressure on themselves to be the \u201cperfect parent,\u201d \u2013 which led to increased spending on their children. More than half (52%) offered children treats or perks, four in 10 (43%) overspent on an item or experience, while a third (33%) did something that was beyond their initial budget. This parental pressure stems from good intentions: parents\u2019 number one source of financial stress is the desire to give their children the best life possible (44%).\n<\/p>\n

\n\u201cParenting brings so much joy. But it can come with so many expectations and competing priorities, especially when it comes to managing family finances,\u201d said Healy. \u201cOur advice: be clear with your financial priorities today, so you don\u2019t lose sight of the future goals you\u2019re working so hard to achieve for yourself and your family.\u201d\n<\/p>\n

How parents take control financially<\/b><\/p>\n

\nThe Parents & Finances<\/i> research revealed four tips parents can implement to help balance their varying goals:\n<\/p>\n

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  1. Give children a strong financial foundation.<\/b> Parents in the study shared how they support their children in making smart financial decisions: open a savings account for them (76%), encourage them to save for a short-term goal (68%), and stop them from spending money unwisely (61%). Additionally, most parents (70%) involve their children in family financial decisions to help instill values and principles.\n<\/li>\n
  2. Be strategic with children\u2019s allowances.<\/b> Parents also reported giving children a strong financial start by being thoughtful about when to let them make their own choices with money. More than half (55%) of parents pay their children an allowance, and nearly nine in 10 (88%) pay their children for actions or achievements, such as chores (68%), good grades (55%), babysitting (28%), and athletic success (24%).\n