So we got David our 6-year-old son a bank account recently. He is very excited about it, and every time we pass his bank or one at a different location he proudly shouts, “That’s my bank.” We are trying to instill in him at a young age that money is for saving for something special not for wasting on every toy he may want for the moment. Of course this is starting to backfire. Remember I told you how much he wanted a dog?  Well he tells me he has enough money in his account to buy one. Yikes! More on that battle to come.

While David is young I still want him to know how to save money and how to budget what we do have. And in these recessionary times you would think every kid would be somewhat aware of the current economy.

Not so according to a recent survey conducted by Wells Fargo. The survey shows 95% of parents say they are confident their children will attain their financial goals, but only 5% of the younger adults said they were as confident.

And when it comes to budgeting…big disparity. 92% of parents thought budgets were a good idea and 95% of their kids say it wasn’t. Parents said they wanted their kids to find a job, pay off student loans, credit cards and debt. The younger set thought differently. Their priorities are buying a car, finding a job, and purchasing a home.

And when it came to understanding the money tools they will need when they face the real world? Big differences!

41% know what a credit score is  (parents, 75%)

28% understand annual percentage rates (parents, 75%)

23% understand 401(K) (parents, 73%)

31% understand compound interest (parents, 64%)

So what does this all mean?  It means we need to really start to educate our kids early.  We need to sit down with them and show them how money is earned, how it grows and what paying interest and earning interest means.

Wells Fargo offers critically needed financial education to students and adults nationwide with Hands on Banking®/ El futuro en tus manos®, a free, fun, non-commercial program available in both English and Spanish. The Hands on Banking program teaches people in all stages of life about the basics of responsible money management, including how to create a budget, save and invest, borrow responsibly, buy a home and establish a small business.