College of Human Ecology
Office of the Dean
RW-246 Rivers Building
East Carolina University
Greenville, NC 27858-4353
252-328-1098
www.ecu.edu/che
__________________________
PN/ November 2, 2010
Contact:
Peggy Novotny, Director of Marketing and Communication
252-328-2882, novotnym@ecu.edu
FOR IMMEDIATE RELEASE
Many parents don’t do enough to teach their children financial literacy
Greenville, NC (November 2, 2010)—Many young adults believe they should have received more
knowledge about finances from their parents. A study in the current edition of Family Relations:
Interdisciplinary Journal of Applied Family Studies examines the influence parents have on college
students’ financial knowledge, financial attitudes, and financial behaviors.
Researchers Bryce Jorgensen of East Carolina University and Jyoti Savla of Virginia Polytechnic Institute
and State University surveyed 420 college students to see how much the students were influenced by
their parents in money matters. Using a survey designed by Jorgensen and used internationally, the
researchers learned that parents influenced the students’ financial attitudes and behaviors but not their
financial knowledge, even though 67% of the students said they expected to learn financial knowledge
from their parents. The students also said that their lack of financial knowledge (average scores 58%)
influenced their financial attitudes, which in turn influenced their financial behaviors.
Other findings showed that parents with higher incomes tended to have more positive influence on their
children, and their children had better financial attitudes and behaviors. Further, students’ financial
knowledge, attitudes, and behaviors increased from freshman to senior year, indicating that their
financial literacy improved due to maturation and experience rather than parental influence.
“Money tends to be more of a taboo subject in the home than discussions about sex,” said Jorgensen.
“This is very problematic, especially in today’s economic climate where the individual savings rate has
declined and debt, bankruptcies, and unemployment have increased. The lack of desire or inability of
parents to communicate with their children about finances needs to change. Young adults with the
highest financial literacy scores came from homes where their parents both modeled and discussed
financial issues.”
Jorgensen believes the study has implications for parents, financial aid offices, student affairs
professionals, administrators, Cooperative Extension and other educators. “Students must gain the
financial literacy needed to be financially responsible adults in this increasingly complex economy,” said
Jorgensen. “Since many parents may be financially illiterate themselves, any program to financially
educate the students might also consider a component to educate parents. Increasingly, parents’
financial literacy and their capacity to teach finances to their children will increase the financial literacy
of young adults.”
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Bryce Jorgensen, PhD, is with the Department of Child Development and Family Relations at East
Carolina University. Jyoti Savla, PhD, is with the Center for Gerontology and Department of Human
Development at Virginia Polytechnic Institute and State University.
A .PDF of the article in its entirety may be acquired by contacting Dr. Bryce Jorgensen at
jorgensenb@ecu.edu.
The East Carolina University Department of Child Development and Family Relations is within the College
of Human Ecology. The College educates professionals who enhance the well-being of people and
communities. Through research, service, and outreach, each academic discipline strives to improve the
relationship between people and their environments. For more information on the Department of Child
Development and Family Relations, visit www.ecu.edu/che/cdfr.
Contact
Bryce L. Jorgensen, PhD
Assistant Professor
Department of Child Development and Family Relations
College of Human Ecology
East Carolina University
Ph. 252-737-2074
jorgensenb@ecu.edu