Financial priorities shift when men become dads

Raising a son or daughter is the most important and longest job a father will ever have. This Father’s Day we recognize the 70 million dads around the country for their contribution to raising the next generation. In addition to being a driver, chef, and janitor, the job of parent requires men to teach their children about a seemingly endless number of subjects.

One thing children learn from their fathers is how to manage money. In a recent survey by the NFCC, the majority of respondents indicated that they learned the most about personal finance from their parents.   And a study by ING DIRECT found that nearly all parents feel responsible for their children’s financial education.  While there is some concern that parents don’t feel adequately prepared to teach their children about money, what might matter most is the example that they are setting.

Most people can increase their financial literacy by reading books, taking classes, or talking to experts.  But making the right financial choices isn’t only about knowledge – it’s about putting that knowledge to good use.  Unfortunately, the survey by ING DIRECT revealed that only three out of ten parents think that they are "excellent" financial role models. 

While many dads may not feel like “excellent” role models, there is some evidence that becoming a father causes men to adjust their financial priories for the good of their families.

  • Dads are good providers – More dads said they’d “get another job if they couldn’t pay the mortgage or the rent” (43% vs. 28%), and more believe that “purchasing a home today is a good investment” (75% vs. 67%) than men with no children.  (From “Home Ownership” survey, June 2011)
  • Dads do what it takes to help financially – More dads said they’d “put off plans for buying a car” (48% vs. 30%), “put off plans for buying a house” (25% vs. 16%), and “shop at less expensive stores” (61% vs. 52%) compared to men without children to help maintain their families’ financial condition during a difficult economy.  (From “Financial Literacy Month” survey, March 2009)
  • Dads have their priorities right – When asked what the silver lining might be in a tough economy, more dads said they were “spending more quality time with family and friends” (42% vs. 26%) compared to men without children.  (From “Financial Literacy Month” survey, March 2009)
  • Dads are sensible about unplanned-for money – More dads than men with no children would take care of “an obligation” with a tax refund (53% vs. 38%).  (From “Tax Time” survey, February 2007)

This Father’s Day, consider the financial lessons your dad taught you by example.  And this Father's Day, remember that one of the most important gifts you can give to a parent is to simply say “Thanks.”

 

 

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.