How a lack of financial literacy spells trouble [ Advertiser disclosure]( [View in browser ]( [Bankrate®]( April is Financial Literacy Month, and with it, fewer Americans are achieving financial independence than before. From shrinking savings to young adults raiding their parents retirement account, here's what you need to know this week in the battle for money sense. When the parents pay the rent
How adult children are eating into their parents savings [alt goes here]( As layoffs strike, rents rise and a recession looms, young adults are turning to the Bank of Mom and Dad for help with their bills. A [survey by Bankrate]( found that more parents are shelling out for their kids, at the cost of Junior's financial independence and mom and dad's retirement funds. The big numbers:
• Over two-thirds (68 percent) of parents said they were currently making a [financial sacrifice]( for their adult children.
• Over half (51 percent) of parents dug into their emergency savings in order to help their kids, while 53 percent said they [sacrificed their retirement]( savings.
• Households that made less than $50,000 per year are more likely to [pull from]( their emergency savings, retirement funds and debt repayment funds in order to help their adult children. The big impact: Helping out their kids is costing parents [big time](. One in five respondents said they gave up their savings, paying off debt or put off some other financial milestone to help their adult children, putting the older generation at financial risk when rough times hit. Where do we go from here? Financial independence doesn't start when your kids turn 18. It's better to start the money conversation early and [prepare your kids]( for the world of budgeting, emergency savings and 401ks. Tedâs take
âRemember that saying about putting your oxygen mask on before helping others. While we of course want to be empathetic and help our kids, sometimes financial assistance goes too far.â
[Ted Rossman, Bankrate senior industry analyst]( Don't wait for "the money talk" with your kids
No, you don't have to replace Bluey with The Ramsey Show [alt goes here]( A lack of financial literacy can gravely impact your kids. Over half of teenagers in high school said they don't feel prepared to finance their future plans. Rising student loans, rental prices and interest rates can all spell disaster to an unprepared young adult who makes financial mistakes out the door. Don't wait until the teen years â [start now](. Quick bite: Only 23 states require high schoolers take a personal finance class to graduate. Is your state [one of them]( [Read article]( Quiz: On average, men answered 55 percent of personal financial questions in a quiz correctly. What percentage of questions did the women answer correctly? A. 33 percent B. 45 percent C. 57 percent D. 65 percent Find the answer at the end of this weekâs edition! How Gen Z tackles their finances
Goodbye, paper checks â hello, banking apps [alt goes here]( Young adults are handling their money almost entirely digitally, which is creating a gap with the "Cash is King" generation. When cashless transactions, online-only banks and digital budgeting tools are the name of the game for Gen Z, hereâs [how to teach your teens]( about the new world of finance. Quick bite: More credit card providers are offering budgeting tools and spending trackers. Here's how you can [take advantage](. [Read article]( Financial myths, busted Making six figures means I don't need a budget, right? Nope! [Start a budget]( no matter what your income. It's too late for me to save for retirement. Nu-uh! You can catch up at any age â [here's how](. Do I have to carry a balance on my credit card to get a good credit score? Just the opposite. [Learn why](. Did you know? Bankrate offers online courses on budgeting, debt management, investing and more. [Sign up]( and boost your financial literacy today! Reading between the lines of financial literacy
Because even Jeff Bezos needs a personal budget [alt goes here]( Whether you own a Fortune 500 or work retail, financial literacy is for everyone. However, it doesn't come naturally â here's what you [might be missing](. Quick bite: Over 30 percent of Americans lose sleep over everyday expenses. Don't let your money woes [keep you up](. [Read article]( Quiz answer: B. 45 percent. The financial literacy gap is a persistent burden on women, putting them at risk for heavy debt, a lack of emergency savings and insufficient retirement funds. [Here's why](. © 2023 Bankrate LLC. All Rights Reserved. Bankrate LLC ⢠38 01 PG A Boul evard ⢠Su ite 5 55 ⢠Palm Beach Gardens, FL 33410 You received this update at {EMAIL} because you have a Bankrate account. You may unsubscribe from this email [here](. View our [privacy policy](.