Family Holiday Saving & Spending Trends

7TH ANNUAL PARENTS, KIDS & MONEY SURVEY: SUPPLEMENTAL DATA T. Rowe Price November 2015

Detailed Results

2

Contents

Holiday Spending Habits Holiday Spending Data Cuts

– By Parent Gender – By Saver vs. Spender Parents – By Other Types of Savings – By Splurging – Impact of Holiday Spending Habits on Kids – Holiday Overspending

Respondent Profile Objective and Methodology

HOLIDAY SPENDING HABITS

4

4%

7%

9%

16%

29%

36%

47%

56%

0% 10% 20% 30% 40% 50% 60%

I don’t spend money on the holidays

Retirement savings

Emergency fund

Tax refund

Regular savings

I save for holiday spending throughout the year

Credit cards

Current income

Paying for Holiday Spending

T. Rowe Price 2015 Parents, Kids & Money Survey N=1,000 (Total Respondents)

• 37% of parents use savings (regular savings, retirement savings, emergency fund) to pay for holiday spending.

WHICH OF THE FOLLOWING HAVE YOU USED TO PAY FOR HOLIDAY SPENDING? (CHECK ALL THAT APPLY)

5

38%

62%

0% 10% 20% 30% 40% 50% 60% 70%

Disagree

Agree

Overspending on the Holidays


• Nearly two-thirds of parents feel as if they spent more on the holidays than they should have.

AGREE OR DISAGREE: I SPENT MORE FOR MY KIDS OVER THE HOLIDAYS THAN I SHOULD HAVE

HOLIDAY SPENDING DATA CUTS

7

11%

11%

32%

3%

6%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

I have used retirement savings to pay for holiday spending

I have used my emergency fund to pay for holiday spending


Women Men

Holiday Spending by Parent Gender


Women tend to plan more for holiday spending than men, who in turn, are more likely than women to use emergency funds and retirement savings to pay for holiday spending.

PERCENT OF PARENTS WHO RESPONDED POSITIVELY:

8

6%

7%

41%

55%

9%

11%

29%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%




I spent more on my kids over the holidays than I should have

Spender Saver

Holiday Spending by Saver vs. Spender


59% of savers do not save for the holidays throughout the year.

Yet, self-identified “savers” are less likely to splurge on holiday spending, and more likely to save throughout the year.

PERCENT OF PARENTS WHO RESPOND POSITIVELY:

9

Holiday Spending by Setting a Good Financial Example


38%

26%

0% 5% 10% 15% 20% 25% 30% 35% 40%


Don't Set a Good Financial ExampleSet a Good Financial Example

62% of parents who feel they set a good financial example don’t save for holiday spending throughout the year.


10

Holiday Spending by Saving for Retirement


44%

30%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%


Don't save for retirementRegularly Save for Retirement


Nearly a third (30%) of parents who do not regularly save for retirement do save regularly for holiday spending.

11

Holiday Spending by Saving for College


12%

13%

43%

66%

2%

4%

28%

56%

0% 10% 20% 30% 40% 50% 60% 70%





Don't Save for College

Regularly Save for College

Over a quarter (28%) of parents who do not regularly save for their kid’s college education do save regularly for holiday spending.


12

13%

14%

76%

3%

5%

52%

0% 10% 20% 30% 40% 50% 60% 70% 80%




No Yes

Holiday Spending by Splurging vs. Not


“Splurgers” are more likely to say they spent too much on holiday spending and more likely to use their emergency fund and retirement savings to pay for holiday spending.


Frequently Splurge

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Impact of Holiday Spending Habits on Kids


54%

90%

42%

82%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Parents do a good teaching about money

Parents set a good financial example

No Yes

Parents who save for holiday spending throughout the year are more likely to have kids who say they are doing a good job teaching them about money and setting a good financial example.

PERCENT OF KIDS WHO RESPOND POSITIVELY:

Parents Save Throughout the Year for Holiday Spending

14

Holiday Overspending


50%

52%

66%

91%

27%

46%

54%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Parents argue about money with their spouse

Parents carry a credit card balance

Kids say parents worry about money

Parents make sacrifices to spend money on their kids

No Yes

Parents who overspent on holiday shopping are more likely to argue about money with their spouse and have kids who say their parents worry about money. They are also more likely to say they make sacrifices to spend money on their kids.

PERCENT OF RESPONDENTS WHO RESPOND POSITIVELY:

Parents Overspent on Holiday Spending

RESPONDENT PROFILE

16

50% 50%

Respondent Profile

27%

25%

24%

23%

South

Northeast

West

Midwest

Q2. REGION Q1. AGE Q3. GENDER

Men Women

Q5. HOUSEHOLD INCOME

77%

11%

9%

2%

1%

Married

Separated/divorced

Single

Married (same sex)

Widow/widower

Q4. MARITAL STATUS

15%

65%

20%

< 35

35–50

51 +

30%

44%

26%

< $50K

$50K–$99,999

$100K +

74%

13%

13%

5%

1%

White/Caucasian

Black/AfricanAmerican

Hispanic/Latino

Asian

Native American

Q6. RACE/ETHNICITY

T. Rowe Price 2015 Parents, Kids & Money Survey N=1,000 (Parents: Total respondents)

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Respondent Profile

Q7. EDUCATION LEVEL

59%

16%

10%

5%

5%

3%

1%

Employed full-time

Stay at home parent

Employed part-time

Self-employed

Unemployed

Retired

Student

Q8. EMPLOYMENT STATUS

1%

15%

19%

16%

33%

16%

Less than HS graduate

HS graduate

Some college

Associate's degree

Bachelor's degree

Graduate degree

31%

44%

17%

9%

1

2

3

4 +

Q9. # KIDS IN HH

53% 47%

Q11. KID GENDER

Boys Girls

Q12. KID AGE

12%

14%

16%

14%

14%

15%

15%

8

9

10

11

12

13

14

T. Rowe Price 2015 Parents, Kids & Money Survey N=1,000 (Parents: Total respondents); N=881 (Kids: Total respondents)

OBJECTIVE AND METHODOLOGY

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Objective and Methodology

Objective

To understand the basic financial knowledge, attitudes, and behaviors of both parents of children ages 8-14 and their children ages 8-14.

Methodology

T. Rowe Price commissioned an online survey of parents of children ages 8-14 and their children ages 8-14.

The survey was fielded from 1/20/15 to 1/27/15, with parent quotas of at least 50% men and 50% women.

A total of 1,000 parents and 881 children ages 8-14 in the U.S. participated; the sampling error for a sample of 1,000 is +/-3.1% at the 95% confidence interval.

The survey was fielded through MarketTools, Inc.

T. Rowe Price 2015 Parents, Kids & Money Survey T. Rowe Price Investment Services, Inc. 2015-US-16195

Economy & Finance

Family Holiday Saving & Spending Trends