Polls / February 13, 2012

Have you ever taken money advice from your parents or grandparents?

Of about 1,500 respondents to the latest eZonomics online poll, 57% have taken money advice from their parents or grandparents.

I inherited your savings style
Parents and grandparents are widely trusted for money advice, with the results of this poll echoing findings of the ING International Survey on Savings. In the IIS, in all 19 countries surveyed family was cited most as a trusted source for help when making a major financial decision. In Turkey, Romania, India and Thailand, at least 80% of IIS respondents named family as a trusted source for money advice. Banks and financial institutions, qualified financial advisors and friends were also popular – but this varied from country to country.

Does mother always know best?
Parents, grandparents, cousins and aunts – they might have a wealth of experience to pass on, with billionaire investor Warren Buffett last year famously publishing letters his grandfather wrote. But having a range of sources can be a better bet.

Researchers have found people who grew up in the depression may be less willing to take financial risk. They are suffering from “scarring", from their negative experiences. Share market losses similarly can influence our attitudes to investing, for decades. 

Alternatively, hindsight bias can skew memories of past investments and we tend to block out bad memories in favour of good ones. Relatives who prospered may look back and inadvertently believe their current wealth was due to their fortunate choices, whereas luck and general economic conditions favoured them.

Ask around
Parents and grandparents might pass on their wisdom, but having a range of sources can be best of all.

This article is related to the ING International Survey:

Savings 2012

Savings 2012

January 1, 2012

How do savers in the Netherlands and Australia differ in Spain, Poland, China, Canada, the United Kingdom and elsewhere? How has the global financial crisis altered savings behaviour? ING International Survey on Savings...

InvestingBiasFamilyLife cycle

eZonomics team
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