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 often as a trusted source for help when making a major financial decision. In Turkey, Romania, India and Thailand, 80% or more 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 the level 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.
Be aware, for example, that researchers have found people who grew up in the depression may be less willing to take financial risk. Known as “scarring”, a range of negative experiences – including share market losses – can influence our attitudes to investing for decades. Parents and grandparents’ experiences may differ from the situations their children face.
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 current wealth was made by a series of fortunate choices whereas, in truth, luck and general economic conditions favoured them.
Parents and grandparents might be able to pass on their wisdom, but a range of sources can be helpful in checking it out.
This article is related to the ING International Survey: