Parents of the post-subprime crisis generation are more willing to talk to their kids about managing their money than about sex, according to a CreditDonkey.com survey.
Out of over 1,000 college students were asked if their parents taught them about sex and money management. While nearly 63% said that their parents helped them learn about managing their money, only 53.2% said that their parents talked to them about sex.
Parents were also slightly more likely to talk money than drugs: 61.1% said that their parents had talked to them about drugs.
Parents were more likely to teach their kids how to drive than to talk to them about sex, drugs, or managing money: 81.65% said that their parents had helped them learn to drive.
|Did your parents teach you about money management? © CreditDonkey|
|Did your parents talk to you about sex? © CreditDonkey|
|Did your parents talk to you about drugs? © CreditDonkey|
|Did your parents teach you how to drive? © CreditDonkey|
"Money can no longer be the big taboo it used to be," noted Charles Tran of CreditDonkey.com. "After decades of stagnant wages, sky high tuition fees, and a more competitive work environment, it is more important than ever that parents talk to their kids about money--and parents seem to be aware of this."
The focus on money seems to be working. The vast majority of respondents said that they had opened a bank account by age 18--a whopping 92.4%. However, many said that they don't have a credit card (29.8%) and nearly as many have not bothered to apply for one (28.1%).
|At what age did you open your first bank account? © CreditDonkey|
|At what age did you get your first credit card? © CreditDonkey|
|Were you approved for the first credit card you applied for? © CreditDonkey|
Those that do and don't have a credit card were confident about their ability to manage debt. 84.7% of students said they felt responsible enough to use credit cards. That confidence also translated into positive action; 41.9% of respondents with a credit card said they paid off their credit card balances every month, and 41.4% said they usually pay more than the minimum amount due on their credit cards every month.
|Do you feel responsible enough to use a credit card? © CreditDonkey|
|Do you pay the minimum amount due? © CreditDonkey|
"Debt management and debt avoidance seem to be second nature to this generation," Tran noted. "Whether it's because parents are teaching their kids how to use credit cards and avoid high credit card debt, or because they are learning from their parents mistakes, this generation seems to know how to manage debt."
That knowledge will benefit college students when facing student loans. In 2011, student loan debt in the United States exceeded $1 trillion, surpassing total credit card debt.
CreditDonkey.com conducted the online survey of 1,041 college students from August 2 to August 27, 2012.