T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Earnings Presentation (March 2012)
33 slides from T. Rowe Price's earnings presentation, March 2012
Slide 1: Fourth Annual Parents, Kids & Money Survey
Fourth Annual Parents, Kids & Money Survey Detailed Results March 2012 Copyright 2010 T. Rowe Price. All rights reserved.
Slide 2: Frequency of Family Money Conversations
Frequency of Family Money Conversations How often do you actually have conversations about money and the importance of spending and saving on a regular basis? Parents and kids are mostly in agreement about how often they are talking with each other about money issues. The majority of parents (76%) a
Slide 3: Parents are Talking More About Money with Kids
Parents are Talking More About Money with Kids Compared to a year ago, are you having more/same/fewer conversations about money and the basics of saving and Top reasons for increase in spending with your child? conversation frequency Child can understand more/needs 38% to learn as gets older Economy
Slide 4: What Kids Want to Know About Money
What Kids Want to Know About Money What money topics do you wish your parents would talk to you about more often? Saving (20%) and how to make more money (18%) topped the list of money topics kids want parents to talk about more often. Still, 45% didn’t know or couldn’t name a money topic they wante
Slide 5: Kids Go to Moms First with Money Questions
Kids Go to Moms First with Money Questions When you have a question about money, who do you go to first to get answers? More than half (54%) of kids report they go to their moms first when they have a question about money, compared to 40% who go to their dads first. Copyright T. Rowe 2010 Price 2012
Slide 6: Parents Don’t Always Agree on Money Matters… and Kids Know It
Parents Don’t Always Agree on Money Matters… Agreement with: Parents agree with each other on money matters and Kids Know It Kids are aware that their parents don’t always agree on money matters, with nearly half of all parents (46%) stating they don’t agree on money issues. Copyright T. Rowe 2010 P
Slide 7: Parents Are Not Honest with Kids About Money Matters
Parents Are Not Honest with Kids About Money Matters How often do you not tell the truth Being honest with yourself when it comes to money, which of the about money-related items? following have you ever not told the truth about to your child? Three-fourths (77%) of parents report not telling the tr
Slide 8: One Third of Parents Avoid Talking to Kids About Family Finances
One Third of Parents Avoid Talking to Kids About Family Finances Agreement with: Parents talk to child about family’s current financial situation Nearly one-third (32%) of parents say they avoid talking about their family’s current financial situation with their kids. Copyright T. Rowe 2010 Price 20
Slide 9: Parents Think They Encourage Kids to Talk About Money
Parents Think They Encourage Kids to Talk About Money… Agreement with: Parents encourage child to talk about money. But Kids Don’t Quite Agree Kids don’t fully agree with parents about being encouraged to talk about money matters: 24% of kids disagree or strongly disagree that they are encouraged to
Slide 10: Parents Feel Prepared for Money Conversations
Parents Feel Prepared for Money Conversations How prepared do you feel to teach your child about basic finances such as setting goals, the importance of saving, spending smartly, inflation and diversification? Most parents (82%) feel they are at least “fairly well prepared” to discuss basic financia
Slide 11: Parents Find Financial Conversations Hard to Have with Kids
Parents Find Financial Conversations Hard to Have with Kids How easy or difficult do you find the following topics to discuss with your child? “Easy” “Difficult” 95% 5% 93% 7% 94% 6% 90% 10% 81% 19% 80% 20% 72% 28% 71% 29% 61% 39% Relative to other topics important to discuss with their kids, parent
Slide 12: Parents’ Understanding of Financial Topics
Parents’ Understanding of Financial Topics I have a really good understanding of… Parents report having a sound understanding of how to set goals and the importance of saving, with more than 90% agreeing they understand these concepts. However, only 64% agree they have a good understanding of how to
Slide 13: Kids’ Understanding of Financial Topics
Kids’ Understanding of Financial Topics PARENTS KIDS My child has a really good I have a really good understanding of… understanding of… Kids tend to think they know more about financial topics than their parents think they do. For example, the majority of kids agree they understand the importance o
Slide 14: Parents and Kids Don’t Understand How to Best Grow Money Over Time
Parents and Kids Don’t Understand How to Best Grow Money Over Time PARENTS KIDS When asked a series of questions to test their Having ___, as well as a savings account, gives your money knowledge of how to best the best opportunity to grow over a long period of time. grow money assets over Stocks 49
Slide 15: Teaching of Financial Concepts
Teaching of Financial Concepts Which of the following financial concepts are you teaching your child/parents teaching you? Parents and kids agree on which financial concepts parents are teaching their kids. Most parents (72%) indicate they spend most of their time teaching about what it means to spe
Slide 16: Parents Don’t Think They Are as Smart as Their Kids Think They Are
Parents Don’t Think They Are as Smart as Their Kids Think They Are How would you grade yourself/your parents as a role model for your child/you regarding your saving and spending habits? REPORT CARD B- REPORT CARD B+ When it comes to serving as a role model for spending and saving habits, kids give
Slide 17: Parents Didn’t Get Best Start in Learning about Money
Parents Didn’t Get Best Start in Learning about Money PARENTS KIDS My parents did a good job teaching me about money. My parents do a good job teaching me about money. When asked if their own parents did a good job teaching them about money, 39% of parents feel their parents did not. However, kids o
Slide 18: Parents Not Setting Best Money Example for Kids
Parents Not Setting Best Money Example for Kids Which of the following activities do you do with your own finances? Less than half of parents are conducting some good financial behaviors. Fifty percent (50%) are regularly setting aside money to save or invest and only 43% have set a savings goal, fa
Slide 19: Putting Financial Knowledge into Practice
Putting Financial Knowledge into Practice When it comes to back-to-school shopping, which of the following activities do you do together? Parents make more financial preparations for back-to-school shopping than kids appear to be aware of. While most parents make lists, go through things to see what
Slide 20: Putting Financial Knowledge into Practice
Putting Financial Knowledge into Practice When you take a family vacation, which of the following activities do you do before you go? When preparing for a family vacation, many parents (45%) report they involve their kids when deciding where to go, and kids agree (51%). However, kids are largely una
Slide 21: Putting Financial Knowledge into Practice
Putting Financial Knowledge into Practice How do you handle gift giving for the holidays? While the majority of parents (64%) say they make a shopping list for holiday gifts, only 19% stick to it and another 12% buy gifts for themselves. Kids imitate this behavior – 26% make a list but only 11% stic
Slide 22: Parents’ Financial Regrets
Parents’ Financial Regrets Thinking back to your childhood and knowing what you know now, what is your biggest financial regret? Parents’ biggest financial regret is not saving enough (43%), followed by spending too much or being in debt (32%) and started saving too late (29%). This finding is not s
Slide 23: Financial Advice
Financial Advice What is the most important financial advice you plan to or have already given your child? Nearly one-third (31%) of parents state the most important advice they can give their kids is “work hard.” Nine percent aren’t sure what the most important advice is that they can give their ki
Slide 24: Parents Think Life on Other Planets More Likely Than Kids Having a Secure Financial Future
Parents Think Life on Other Planets More Likely Than Kids Having a Secure Financial Future How likely do you think each of the following are? More parents feel that it is more likely that life exists on other planets (59%) than Social Security will be available in its current form when their kids re
Slide 25: Allowances
Allowances Reasons for Not Giving an Do you give your child an allowance? Allowance I can’t afford to give an 26% allowance How Allowance is Given I prefer to pay for the items 22% they need Allowance is 86% I don’t see the value in giving 12% earned an allowance Given 14% My child is too young 7% r
Slide 26: Appropriate Ages
Appropriate Ages What is the appropriate age to have: Parents Kids % kids who (mean age) (mean age) already have these Credit card 20 18 4% Cell phone 13 12 56% Computer 12 11 57% Job 16 16 9% Access to own 16 15 31% savings account Kids give slightly younger mean ages for when they should have cred
Slide 27: Kids Think They Can Manage Their Money… Parents Disagree
Kids Think They Can Manage Their Money… Agreement with: Kids are able to make own financial decisions. Parents Disagree Three in five (61%) kids agree they are able to make their own financial decisions, but nearly as many parents (59%) disagree that their kids are able to do so. T. Rowe Price 2012
Slide 28: Kids Think Online Games Would Help Them Learn About Money
Kids Think Online Games Would Help Them Learn About Money How helpful do you think an online game would be to helping you learn the basics about saving and spending? The majority (85%) of kids think an online game would be help them learn more about the basics of spending and saving. T. Rowe Price 2
Slide 29: Demographics & Methodology
Demographics & Methodology Copyright 2010 T. Rowe Price. All rights reserved.
Slide 30: Survey Goal & Methodology
Survey Goal & Methodology Goal • To understand the basic financial knowledge, attitudes and behaviors of both parents of children ages 8-14 and their children ages 8-14. Methodology • T. Rowe Price commissioned an online survey of parents of children ages 8-14 and their children ages 8-14. • The sur
Slide 31: Demographics - Parents
Demographics - Parents Marital Status Single, never married 10% Employment Annual Household Married/domestic Employed full time 51% Income partnership/living with 77% Employed part time 10% Under $25,000 17% partner Separated/divorced 10% Self-employed 6% $25,000-$49,999 23% Widowed 2% Not employed,
Slide 32: Demographics - Parents
Demographics - Parents Age Gender Ethnicity 18-24 4% Male 50% White/Caucasian 80% 25-29 4% Female 50% Black/African American 12% 30-34 14% Asian 3% 35-39 16% Pacific Islander <1% 40-44 19% Spanish/Hispanic/ Latino Native American 1% 45-49 18% Yes 11% Other 4% 50-54 10% No 88% 55-59 7% Prefer not to
Slide 33: Demographics - Kids
Demographics - Kids Age 8-10 28% 11-12 36% 13-14 36% T. Rowe Price 2012 Copyright 2010 Parents, T. Rowe Kids & All Price. Money Survey rights reserved. 33
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