The survey shows 95 percent of parents say they’re confident their children will attain their financial goals, but only 5 percent of the young adults surveyed said they had such confidence about their personal finance goals.

 

The survey also showed parents’ top three priorities for their children are to find a job, pay off student loans and pay off their credit cards and debt. Youth said their top three were to buy a car, find a job and buy a home.

 

Parents and young adults also have very different views on budgeting – increasingly important as the economic downturn continues. Ninety-five percent of youth said a budget is not effective for them, compared to 92 percent of parents who indicated budgets are effective. Parents are more likely to maintain a paper-based or computer-based budget versus online. Youth, however, are evenly divided on how they keep their budget – paper-based, computer-based or online.

 

“The survey shows there’s a huge knowledge gap between the generations when it comes to money management and there’s a need for more education,” said Stephanie Smith, senior vice president at Wells Fargo Internet Services Group.

 

The survey also asked young adults about financial terms and concepts:

Survey results also revealed parents are more concerned about the economy than their children.

Parents and their children are on the same page about the effect of the economy on their budgeting. Both say they’re cutting back on certain spending and managing their money more effectively.

 

Wells Fargo surveyed more than 1,000 parents and 600 young adults, aged 18 to 22, to identify similarities and differences in behaviors and attitudes toward personal financial management. The survey asked parents about their children’s personal financial management practices and compared their responses to those of the young adults surveyed.