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Young adults and their parents hold significantly different attitudes and levels of education about personal finance, suggest the results of a recent survey Wells Fargo & Co. conducted of its own banking customers. Finding jobs, paying off student loans and paying off other debts, such as credit cards, were the top three priorities that 1,000 parents of college students surveyed online in April and May listed for their children. The 600 young-adult respondents, ages 18 to 22, most commonly listed buying a car as their top priority, then finding a job and buying a home. As a group, young adults listed paying off student loans as their fourth priority, followed by paying off other debts. Young adults also are much less confident than their parents are about their financial futures, the data suggest. While 95% of parents said they were confident their children will attain their financial goals, only 5% of young adults expressed the same confidence. Forty-one percent of young adults said they knew what a credit score is, compared with 75% of parents who did. Also, 28% of young adults said they understood annual percentage rates, while 73% of parents did. Asked about the effectiveness of budgets in managing personal finances, 71% of young adults said budgets are somewhat ineffective, and 24% said they are very ineffective. Comparatively, 57% of parents said budgets are somewhat effective, and 35% called them very effective. In one area of agreement, both parents and young adults said they were cutting back on some spending and better managing their money during the economic downturn.
