ADVERTISER DISCLOSURE
AcclaimVisa.com is an independent, advertising-supported web site. AcclaimVisa.com is compensated by the credit card issuers whose offers appear on our site. This compensation can impact how and where credit products appear on our site, including, for example, the order in which they may appear within product listings. AcclaimVisa.com does not offer, review or present all available credit offers.

Young Adults Snub Parents’ Financial Advice

[Monday, May 26th, 2014]

The younger generation could be heading for financial trouble, unless they heed the advice of mom and dad. The latest Financial Literacy Opinion Index from the National Foundation for Credit Counseling (NFCC) showed that although Baby Boomers generally have an excellent grip on their finances, their kids aren’t rushing to them for advice on how to manage their money.

Mom and Dad know best

Sixty-four percent of survey respondents felt they could find better financial advice beyond their mom or dad. Only 20% said they would go to their father and 16% to their mother if they wanted some wisdom on handing their finances.

But the NFCC said this is a mistake. The Baby Boomer generation—those people between 55 and 64—are savvy about money, as a whole. Eighty-two percent of them pay their bills on times and do not have any debts in collections. Fifty-two percent do not carry credit card debt from one month to the next. And only 3% of them are concerned they might not be able to pay off their credit card debt.

The importance of credit scores

Having a solid credit history is key to a good credit score. Without that, young people might find themselves being turned down for credit cards. People with less-than-stellar credit may not be eligible for rewards credit cards, instead having to turn to secured cards. Secured credit cards require the borrower to put down a lump sum for collateral before opening a credit account.

A good credit score is also vital when taking out a mortgage, a business loan, renting an apartment—or even getting a job. Many employers check credit reports before make a job offer.

Reconsider that advice

Older generations do have financial wisdom to offer their children, if only those children will listen. Struggling Millennials should think again about who they ask for help with money matters. It just may be that mom and dad do know best, after all.

Gail Cunningham, NFCC spokesperson, summed it up: “Younger generations may want to reconsider where they seek financial advice, as the data associated with baby boomers from the NFCC’s 2014 Financial Literacy Survey indicates that the 55-64 age range has their financial act together in many areas associated with successful money management.”

The NFCC’s April Financial Literacy Opinion Index took place from April 1 through 30, 2014 and was answered by 861 respondents on the organization’s website.

Copyright © 2006-2017
AcclaimVisa.com.
All Rights Reserved

AcclaimVisa.com is an independent, advertising-supported web site. AcclaimVisa.com is compensated by the credit card issuers whose offers appear on our site. This compensation can impact how and where credit products appear on our site, including, for example, the order in which they may appear within product listings. AcclaimVisa.com does not offer, review or present all available credit offers.

All the credit card information presented without warranty and can change. To confirm the terms and conditions click the "Apply Now!" button and review the current information on a secure credit card terms page. AcclaimVisa.com can be compensated by the credit card issuers when visitors apply for a credit card through this website.

* The acclaimvisa.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. acclaimvisa.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the acclaimvisa.com website are property of their respective owners.

Disclosure: Not an access card.