A study conducted by Charles Schwab just last year found that three in five Americans live paycheck to paycheck, yet only one in four has a written financial plan. In fact, the majority of Americans are hesitant to receive any outside help when it comes to managing their money, even though those who do reach out tend to exhibit more positive investing and saving behavior. 45 percent of U.S. adults aged 40 to 59 said they’d rather visit the dentist than make an appointment with a financial advisor, due in large part to the fact that they feel uncomfortable sharing financial missteps with a stranger.
To gain a better understanding of who people trust when it comes to financial advice, we polled 1,000 Americans to find out who, if anyone, they turn to for money-related questions. We found that while those in older age brackets (65+) still enlist the help of a financial planner, many younger demographics actually go to their parents before resorting to the internet. Some key findings included:
- 23% of respondents would rather go to their parents for financial advice compared to just 19% who would turn to the internet.
- 33% of men would go to a financial advisor versus 26% of women.
- 4 out of 10 of those aged 55+ would go to a financial advisor.
Millennials Most Likely to Reach Out to Their Parents for Advice
Each year, the internet continues to grow in staggering amounts, with users utilizing the web for everything from social media consumption to eCommerce. Today, roughly nine out of ten American adults use the internet. Because there are millions of active internet users searching Google daily, we were surprised to find that still, most respondents would go to their mothers for financial advice over the web.
Our survey polled Americans ages 18 to 65+ and found that of those under 24, 44% would go to their parents for financial advice versus just 33% who would trust Google to answer money-related questions.
Men More Likely to Go To a Financial Advisor Than Women
Around 31% of respondents said they felt most confident reaching out to a financial advisor. Of this number, 33% were men versus just 26% women. Conversely, 14% of women are most likely to turn to their mothers versus just 9% of men.
Those Aged 55+ Most Confident in Financial Advisors
It appears the older generation is less hesitant to reach out to certified financial advisors. Of the 29% who listed financial advisors as their go-to, 40% of respondents were 55 and older. This could lean heavily into the fact that those of this age are nearly retired and feel more inclined to consult an expert in things relating to their retirement income strategy.
Studies have shown that a handful of Americans over the age of 30 don’t understand basic financial terminology such as determining their 401k, knowing what interest is, or understanding how inflation works. Many of these people also feel lost when it comes to a long-term, stable financial plan. Financial planning, however, enables you to create an ongoing process that will not only help with current cash flow but also help build a nest for retirement. Regardless of who you visit for financial advice, be it mom, the internet, or a financial adviser, it’s important to become educated on the terminology, processes, and ways to ensure a secured future.