23% of Americans turn to their moms over a professional financial advisor for money advice
Mother knows best.
A new survey of more than 1,000 U.S. adults conducted by Varo Money and Propeller Insights reveals that 60% have a money mentor of some kind — and for many, that person is their mom.
When it comes to seeking financial advice, 23% of Americans turn to their mothers over a professional financial advisor, or even their father. And for millennials, the number is even higher with 35% banking on mom. Even though there are more than 200,000 individuals employed as financial advisors in the U.S., according the Bureau of Labor Statistics, it turns out that many people prefer keeping their finances in the family.
Alana Hadid, 32 year-old half-sister of Gigi and Bella and co-founder of the luxury denim line La Detresse told Moneyish that some of the best financial advice she’s gotten has been from her mom. “Wise people work to put money in their hands, not in their hearts,” said Hadid.
Dionna, a 26 year-old school coordinator in the Pacific Northwest, told Moneyish that she still accepts financial guidance from her mom. “She always told me to pull out cash from the grocery store to save for a rainy day or to plan a surprise — so I get $20 cash back every time,” Dionna said.
Nearly three quarters of Americans say their parents are good at managing money, according to the survey, which might explain why about half of millennials and 29% of Gen Xers receive financial help from their folks. In the last year alone, 60% of millennials have borrowed money from their parents, and 16% borrow money on a regular monthly basis.
So when is it time to cut the cord? With student loan debt at an all-time high of $1.48 trillion and one in five millennials getting financial help to pay off loans, parents are on the hook to help provide for their kids longer than they have been in the past. The report reveals that nearly half of millennials rely on their parents to pay their cell phone bill; 27% receive help with utilities; a quarter accept assistance with car payments; and 16% let their parents help them pay for childcare.
Margaret, a 33-year-old private school employee in Seattle, Wash. told Moneyish that, “Before I got married, I turned to my mom for guidance. She told me to have a joint bank account, but to keep a separate one, as well, because you always want to have some financial independence — just in case. And I’m so happy I listened to her, because I was able to maintain my independence when I got divorced.”
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