Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Parents and Grandparents College Savings Survey
2
TABLE OF CONTENTS
RESEARCH METHOD…………………………………….... . KEY FINDINGS………………………………………………… SURVEY RESULTS…………………………………………… APPENDIX……………………………………………………...
3
4
5
25
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how – bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
This survey was conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation.1
The statistical margin of error for the total sample of N=2,018 American adults within the target group is +/- 2.1 %.2 This means that in 19 out of 20 cases, survey results will differ by no more than 2.1 percentage points in either direction from what would have been obtained by the opinions of all target group members in the U.S. Sample was drawn from major regions in proportion to the U.S. Census. 1 Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services. 2 Assumes survey participants are the same as non participants. Note: Percentages may not add up to 100 due to rounding.
New England
5%
Mid-Atlantic
16%
South
26%
Southwest
11%
West
20%
2,018 American adults (half Millennial Parents, half Grandparents with
Millennial Children)
Online Survey
October 20-26,
2016
Average time to complete survey:
18 minutes
Head Solutions Group on behalf of TD
Ameritrade Holding Corporation1
49% Male
51% Female
Midwest
22%
WHEN WHAT WHO
CONDUCTED BY
Research Method
Throughout this report, arrows indicate a significant difference between Millennial Parents and Grandparents.
Callouts show significant differences between subgroups noted (i.e. Males and Females, or between Ethnicities) within Millennial Parents (shown in green callouts) or within Grandparents (in yellow), or between a subgroup and the total sample of Millennial Parents or Grandparents.
Key Findings
• Millennial parents prioritize education for children and emergency savings over retirement savings as their top savings priorities. As expected, grandparents put their retirement savings first.
• Millennial parents have $9,180 in student debt, on average, and $11,995 in other debt such as credit card balances, lines of credit and personal loans.
• Two-thirds (64%) of millennial parents who have student debt believe it is likely that the debt will be paid off before their own children reach college age.
• Nine in 10 millennial parents plan to pay at least some of their child’s college fees.
• Millennial parents who expect their child to go to college are prepared to eat out less (50%), spend less money on themselves (50%) or live a simpler lifestyle (49%) to save money for their child’s college fees.
• Six in 10 (60%) grandparents have paid at least some of their children’s college fees.
• Six in 10 millennial parents say they are “happy to help” pay the college fees of their children.
• Six in 10 millennial parents who do not expect to pay in full for their child’s college believe that their child should take responsibility for some/all fees.
• During teenage years, 6 in 10 (61%) millennial parents held a part-time job in the summer compared to half (52%) of grandparents who did the same.
• Six in 10 (63%) grandparents believe they prepared their children for the “real world” very well.
• Millennials and grandparents alike were most likely to be taught about the real world through learning basic household skills (59% and 71% respectively).
Millennial parents prioritize education for children and emergency savings over retirement savings as their #1 savings priorities. As expected, grandparents put their
retirement savings first
Q200b. Base: All Millennial Parents n=1,004; All Grandparents n=1,014 Arrows indicate a significant difference between Millennial Parents and Grandparents at 95% confidence
Which of the following is your #1 savings priority?
19
19
15
13
5
4
4
4
14
36
3
9
7
4
3
0 10 20 30 40
Education for my children
Emergency fund
Retirement
A down-payment on a home
Health or medical emergency
Home improvements
A car/motor vehicle
Gifts/holiday purchases
Millennial Parents Grandparents
3
2
1
1
2
7
4
0
0
1
4
0
1
14
0 10 20 30 40
A vacation
Education for myself
My wedding/civil ceremony
Wedding/civil ceremony of my children
Education for my grandchildren
Wedding/civil ceremony of mygrandchildren
Some other specific purchase
Nothing in particular
n/a
n/a
n/a
%, in order of Millennial Parents %
Millennial parents who are saving for their children’s education are saving, on average, $310 per month, while grandparents are saving a monthly average of $205 toward their
grandchildren’s education
Q205. Base: All saving for education for children: Millennial Parents, n=563, All saving for education for grandchildren: Grandparents n=206.
In a typical month, how much money, if any, do you save towards the following?
Average (nearest $5)
Millennial Parents Grandparents
$310
$205
0
50
100
150
200
250
300
350
Monthly Savings
Education for my children Education for my grandchildren
Millennial parents have $9,180 in student debt, on average, and $11,995 in other debt such as credit card balances, lines of credit and personal loans
Q220. Base: All Millennial Parents n=1,004; All Grandparents n=1,014 1. Trimmed Average, excluding top and bottom 5% to reduce impact of outliers
How much debt do you and your spouse/partner (if applicable) currently have if at all?
Millennial Parents Grandparents
51
21 13 7 5 2
85
6 4 2 2 1 0
20
40
60
80
100
$0 $1 to $10,000 $10,001 to $30,000 $30,001 to $50,000 $50,001 to $100,000 Over $100,000
31
11 9 7
11 11 11 9
32
7 9 7
10 13 13
9
0
5
10
15
20
25
30
35
$0 $1 to $1,000 $1,001 to $3,000 $3,001 to $5,000 $5,001 to $10,000 $10,001 to $20,000 $20,001 to $50,000 Over $50,000
Student Debt
Other debt (excluding Student Debt and mortgages)
Average1: $9,180 Average1: $1,215
Average1: $11,995 Average1: $12,820
• Grandparents still hold $1,215 in student debt, and a further $12,820 in other debt (excluding student loans and mortgages)
%
How likely is it that the student debt held by you and/or your spouse/partner (if applicable) will be fully paid off before your children are of an age when they may start college?
Two-thirds (64%) of millennial parents who have student debt believe it is likely that the debt will be paid off before their own children reach college age
Q240. Base: All Millennial Parents with student debt n=272
Millennial Parents %
46
18
14
10
9 2 Very likely
Quite likely, as long as I do not experience anyunforeseen financial setbacks
Equally likely as unlikely
Quite unlikely
Very unlikely
I don't know
• However, we know that grandparents still carry $1,215 in student debt
64% say it is likely the debt will be paid off
Paying for Children’s College
Nine in 10 millennial parents plan to pay at least some of their child’s college fees
Q700. Base: All Millennial Parents n=1,004
28
34
29
7 2
All of the fees
Half of the fees or more, but notall
Some of the fees, but less thanhalf of the fees
None of the fees
I don't expect my child/childrenwill go to college
91% plan to pay at least some of their children’s college fees
• Millennial parents with only one child are more likely than those with more children to plan to pay all the fees (1 child: 34%, 2: 25%, 3 or more: 21%)
• Latino/Hispanic and Asian millennial parents are twice as likely than caucasian millennial parents to expect to pay all the fees (43%, 42%, 23%, respectively)
1 child: 34% 2 children: 25%
3 or more children: 21%
Latino/Hispanic: 43% Asian: 42%
Caucasian: 23%
How much of your child’s college fees do you and your spouse/partner (if applicable) expect to pay?
% Millennial Parents
H Income. $100k+: 35%
Six in 10 millennial parents who do not expect to pay in full for their child’s college believe that their child should take responsibility for some/all fees
Q705. Base: All Millennial Parents not paying for all of their child’s college fees n=702
4
5
6
15
26
39
60
Other reasons
My child will get scholarships/grants/aid
My parents are planning to pay for my child's college fees
We are saving for our own retirement
I/we paid for my/our own college so think my/our child should too
I/we cannot afford to do so
I/we believe my child should take responsibility for all/some of his/her college fees
0 10 20 30 40 50 60 70
• Millennial parents with a household income of $100,000 or more are more likely than millennial parents as a whole to believe their child should take some responsibility for college fees (71% vs. 60%, on average)
H Income $100k+:71%
H Income <$75k:49%
Why are you and your spouse/partner unlikely to pay for all/ part of your children’s college fees?
% Millennial Parents
Six in 10 millennial parents say they are “happy to help” pay the college fees of their children
Q710. Base: All Millennials Parents who expect their child/children to go to college (n=984). Multiple responses allowed * Small base n=76
How do you feel regarding the extent to which you expect to pay the college fees of your children?
58
40
26
9 7 7 3
10
Happy to help Relieved Guilty Sad Angry None of the above
• Four in 10 (40%) millennial parents, including 6 in 10 (58%) African American millennial parents, are proud to pay their child’s fees • One-quarter (26%), including 4 in 10 African-American (44%) and Latino or Hispanic (39%) millennial parents feel “obligated” to
pay their child’s fees
Millennial Parents
%
%, ‘Proud’
Caucasian Asian African-American Latino or Hispanic
%, ‘Obligated’
39%
39%
58%
36%
24%
22%
45%
39%
Proud Obligated
Six in 10 (57%) millennial parents do not expect their parents to help with the college fees of their child
Q712. Base: All Millennial Parents with a living parent n=885
22
57
21
Yes
No
I don't know
Latino/Hispanic: 31%
• Three in 10 (31%) Latino/Hispanic millennial parents expect that their own parents will help with their child’s college fees, compared to 2 in 10 (22%) millennial parents overall
Do you expect that your parents will help with the college fees of your child/children?
% Millennial Parents
Millennial parents who expect their child to go to college are prepared to eat out less (50%), spend less money on themselves (50%) or live a simpler lifestyle (49%) to save
money for their child’s college fees
Q720. Base: All Millennial Parents who expect their child will go to college n=885. Multiple responses allowed
50
50
49
39
37
33
29
26
20
18
16
16
6
8
0 10 20 30 40 50 60
Eating out less/cutting back on entertainment
Spending less money on myself
Living a simpler lifestyle
Buying a used car/Keeping a car for longer
Having fewer vacations/travelling less
Finding a better paid job
Retiring later than desired
Working full or part time instead of being a stay-at-home parent
Having a smaller family home
Having fewer children than I would ideally like
Saving less for my retirement
Spending less money on my children
Providing less financial support to aging parents
None of the above
Millennial Parents
Stay-at-home: 38%
Stay-at-home: 62%
• Four in ten (38%) stay-at-home parents would be willing to sacrifice staying at home, and work instead, in order to save money for college fees
What would you sacrifice in order to save money for your child’s college fees?
%
Six in 10 (60%) grandparents have paid at least some of their children’s college fees
Q730. Base: All Grandparents n=1,014
22
16
22
21
19
All of the fees
Half of the fees or more, butnot all
Some of the fees, but lessthan half of the fees
None of the fees
My adult child did not go tocollege
60% paid at least some of their children’s college fees
• Four in 10 (41%) grandparents with a high household income ($100,000 or more) paid all of their child’s college fees, where as only 1 in 10 (9%) of those with a household income of $50,000 or less paid the same proportion
Female: 18% Male: 26%
H Income <$50k: 9% H Income $100k+: 41%
How much of your child’s college fees did you and your spouse/partner (if applicable) pay?
% Grandparents
Half (50%) of grandparents who did not pay all of their child’s college fees believed in their child taking responsibility for paying fees
Q735. Base: All Grandparents who did not pay all of their child’s college fees among those whose adult child went to college n=604
6
2
3
10
12
36
50
0 10 20 30 40 50 60
Other reasons
My/my spouse/partner's parents paid for my child's college fees
My child paid their own way
I/we paid for my/our own college so thought that my/our child should too
My child got scholarships/aid/grants
I/we could not afford to do so
I/we believed my child should take responsibility for all/some of his/her college fees
• Slightly more than a third (36%) of grandparents could not afford to pay all/part of their children’s college fees
H Income <$50k: 50% H Income $100k+: 25%
Why did you and your spouse/partner not pay for all/part of your children’s college fees?
% Grandparents
Part-time Jobs as Teens
During teenage years, 6 in 10 (61%) millennial parents held a part-time job in the summer compared to half (52%) of grandparents who did the same
Q815. Base: All Millennial Parents n=1,004, Grandparents n=1,014
61 51
16
Yes, a part-time jobin the summer
Yes, a part-time jobthroughout the
school year
No
52 54
14
Yes, a part-time jobin the summer
Yes, a part-time jobthroughout the
school year
No
Yes, a part-time job in the summer Yes, a part-time job throughout the school year No
Millennial Parents
• Half (51%) of millennial parents and half (54%) of grandparents held a part-time job throughout the school year • For Grandparents, males were more likely than females to have held part-time jobs, whereas for millennial parents there is no
difference between the genders in likelihood to have held a part-time job
Female: 18%; Male: 8%
Female: 49%; Male: 59% Female: 48%; Male: 56%
Did you have a part-time job when you were a teenager?
%
Grandparents
Four in 5 grandparents (83%) had children who had part-time jobs when teenagers, either in the summer or throughout the school year
Q817. Base: All Grandparents n=1,014
52 45
17
Yes, a part-time job in thesummer
Yes, a part-time jobthroughout the school year
No
83%
Did your adult child have a part-time job when they were a teenager?
% Grandparents
Preparing for the ‘Real World’
1
1
1 2
1
3
2
6
7
9
15
17
20
28
28
16
13
18
14
Not very well at all
Very well
Six in 10 (63%) grandparents believe they prepared their children for the “real world” very well
Grandparents
• Millennial parents are not as confident – fewer (55%) say they have prepared their children for the real world well
Q800. Base: All Millennial Parents n=1,004; All Grandparents n=1,014
6 7 8 9 10 1-3
6 7 8 9 10 1-4
Millennial Parents
8 to 10: 55% 1 to 3: 2%
8 to 10: 63% 1 to 3: 4%
H Income $150k+: 44%
How well do you think you are preparing, did prepare or will prepare your children for the “real” world?
%
4 5
5
Millennials are most likely to teach/have taught their children about the real world by imparting basic financial skills (73%)
Q810. Base: All Millennial Parents n=1,004; All Grandparents n=1,014. Multiple responses allowed Arrows indicate a significant difference between Millennial Parents and Grandparents at 95% confidence
In which of the following ways have you, or do you expect to, prepare your children for the “real world”?
73
72
70
67
53
51
44
5
74
78
66
71
60
57
33
3
0 10 20 30 40 50 60 70 80 90
Teaching them basic financial skills
Teaching them basic household skills (e.g. cooking, laundry, grocery shopping),
Teaching them how to manage their allowance/finances when young
Making them save for/pay for some of their own needs/wants
Encouraging them to take a part time job,
Encouraging them to learn a trade or other skill
Encouraging them to take an internship/work study
None of the above
Millennial Parents Grandparents
• Grandparents place greater emphasis on teaching basic household skills than millennial parents do (grandparents: 78%; millennial parents: 72%)
H Income <$50k: 80%
H Income $150k+: 32%
Female: 64%; Male: 56%
Female: 82%; Male: 74%
Female: 61%; Male: 52%
%
4
3
3
2
4
3
5
5
7
8
10
16
14
17
20
21
14
12
19
14
Not very well at all
Very well
Half (53%) of grandparents and 4 in 10 (46%) millennial parents say they were well prepared for the real world by their own parents
Grandparents
Q820. Base: All Millennial Parents n=1,004; Grandparents n=1,014
5 6 8 9 10
6 7 8 9 10
Millennial Parents
8 to 10: 46% 1 to 3: 9%
8 to 10: 53% 1 to 3: 11%
7
How well do you think your parents/guardians prepared you for the “real” world when you were a child?
%
4 3 2 1
5 4 3 2 1
Millennials and grandparents alike were most likely to be taught about the real world through learning basic household skills (59% and 71% respectively)
Q830. Base: All Millennial Parents n=1,004; All Grandparents n=1,014. Multiple responses allowed Arrows indicate a significant difference between Millennial Parents and Grandparents at 95% confidence
In which of the following ways did your parents/guardians prepare you for the “real world”?
59
54
54
48
43
29
25
9
71
58
63
50
46
41
16
8
0 10 20 30 40 50 60 70 80
I was taught basic household skills (e.g. cooking, laundry, grocery shopping)
I was encouraged to take a part time job,
I was made to save for/pay for some of my own needs/wants
I was taught basic financial skills
I was taught how to manage my allowance/finances when young
I was encouraged to learn a trade or other skill
I was encouraged to take an internship/work study
None of the above
Millennial Parents Grandparents
• Being encouraged to take a part time job (54%, 58%) and having to save/pay for some of their own needs/wants (54%, 63%) were other popular methods of being taught about the real world
• Females are more likely to have been taught basic household skills in both generations (Grandparents: 77 vs. 64%, Millennial Parents: 66% vs. 53%)
Female: 66% Male:53%
Female: 25% Male:33%
Female: 77% Male:64%
Female: 38% Male:45%
Female: 54% Male:63%
Female: 60% Male:67%
%
Appendix
Survey sample characteristics
Base: All Millennial Parents, n=1,004; Grandparents n=1,014
5
15
25 23
11
21
5
16
27 22
11 18
New England Mid-Atlantic South Midwest Southwest West
Region
19 12
36 32
0
26 22 28 22 1
High schoolor less
Technicaldegree
Undergraduate collegedegree
Graduate/Professionaldegree
Prefer not to answer
Education
28 23 17 29 2
28 21 18 29 5
Less than $50k $50k-$74.9k $75k -$99.9k $100k + Don't know/ Prefernot to answer
Household Income
Marital Status
14
81
5 0 2
76
16 6
Single, nevermarried
Married/ Commonlaw
Separated/Divorced
Widowed
50 50 47 53
Male Female
Gender
% Millennial Parents Grandparents
70
12 10 8 4 1
88
3 4 6 4 0
Caucasian Asian Latino or Hispanic African-American Others Prefer not to say
Ethnicity
5 19
42 34
16 31 31
22
19 to 24 25 to 29 30 to 34 35 to 37 50 to 54 55 to 59 60 to 64 65 to 70
Age