Mobile banking company Varo Money, Inc. has announced the results of their “Mom: CFP” survey. The survey of more than 1,000 U.S. adults age 18+, conducted by Propeller Insights on behalf of Varo Money in March 2018, determined that Mom is the go-to financial advisor of many Americans and that many people rely on their parents for some form of financial support well into adulthood.
Mom, Certified Financial Planner
Most American adults (60%) have a “money mentor” of some kind, and Mom is at the top of the list.
When it comes to getting financial advice, Americans will turn to their mother (23%) over a professional financial advisor (13%) or their father (19%). The figure was even higher among Millennials (35%) and women (28%). Many Americans also turn to their significant other for financial advice (23%).
Almost three-quarters of Americans (74%) say their parents are good at managing money. This is lucky, because about half (48%) of millennials and 29% of Gen Xers still receive financial help from their parents.
Mom and Dad, Lenders
More than half of millennials (60%) and 35% of Gen Xers have borrowed money from their parents sometime in the past year; 16% of millennials borrow money from their parents on a monthly basis, and another 16% borrow money on a weekly or daily basis.
What’s more, 46% of millennials—and 24% of Gen Xers—say their parents still pay their phone bill. Millennials and Gen Xers also get financial help with:
· Utilities — 27%
· Major purchases — 26%
· Car payments — 24%
· Mortgage or rent — 17%
· Childcare — 16%
Another 1 in 5 millennials get financial help with student loans.
“It’s no surprise that younger Americans are more reliant on their parents for financial support than previous generations have been. They are facing unique challenges, like student loan debt, delayed marriage, and a scarcity of high-income jobs,” said Emily Brauer Gill, Director of Brand & Communications at Varo Money. “At Varo, we offer our customers a solution for getting ahead financially that doesn’t add stress to their lives.”
Varo Money, Inc. (“Varo”), is changing the future of banking with their mobile app: a frictionless bank account offered through The Bancorp Bank that also helps customers do more with their money. Varo is building a mobile banking experience that helps customers cover their expenses, pay their bills and build their wealth over time — so they can stop worrying about money and go live their lives. Unlike traditional banks or other fintech apps, Varo offers a complete solution with integrated deposit, budgeting, savings, and lending products that aim to help customers bank with ease and achieve better financial outcomes. There’s no reason for a bank branch on every corner anymore: all that customers need is an iPhone to bank seamlessly. Based in San Francisco and privately held, Varo has raised $78M to date, led by Warburg Pincus. Varo Personal Loan and Varo Backup Line are offered by Varo Money, Inc., under state licenses, subject to application approval. For more information, please visit www.varomoney.com and follow Varo on Facebook @varomoney or Twitter @varomoney.