NEW YORK, Aug. 5, 2019 /PRNewswire/ -- American parents are feeling the weight of familial financial obligations.
In fact, 42% of parents say they were not financially prepared to have a child, according to a new white paper from Policygenius, the nation's leading online insurance marketplace. Of those parents who do believe they were financially prepared, 23% lack key financial instruments — like a traditional savings account, private life insurance or 529 college savings plan — that make it easier to shoulder child-related expenses.
One in three parents (32%) name "paying down debt" as their top financial goal. Tackling red ink superseded more aspirational goals like saving for retirement (21%) and buying a house (10%).
"The reality is, it's expensive to have a child, especially when you add that strain to the rest of your financial commitments," says Patrick Hanzel, a CFP® and advanced planning specialist at Policygenius. "Every new or soon-to-be parent has a lot to think about financially, but making a plan you can stick to is a good place to start."
Policygenius' first annual Parents & Money: Financial wellness among American families white paper examines financial wellness among parents of varying age, gender and marital status. For instance, it found:
- 64% of married parents felt financially ready for a child versus 38% of single parents
- 63% of men felt financially ready for a child versus 53% of women
- 34% of parents ages 18 to 44 say childcare is their biggest child-related expense
- 22% of parents ages 45 and up say recreation/extracurricular activities is their biggest child-related expense
"Every major life event brings on new and bigger expenses," Hanzel said. "Setting financial goals as early as possible is the key to establishing good habits and preparing yourself for the future."
Policygenius' white paper — Parents & Money: Financial wellness among American families — is based on responses from a nationally representative group of 1,500 parents with at least one child under the age of 18. It was conducted through Google Surveys from June 3 through June 6, 2019. You can read the full report here.
About Policygenius: Policygenius is the nation's leading online insurance marketplace, based in New York City. We've helped more than 5 million customers shop for all types of insurance like they shop for everything else — online. We launched in 2014 and are one of the early insurtech pioneers. We were named one of Inc. Magazine's Best Workplaces for 2018 and 2019.
For more information:
Senior Media Relations Manager, Policygenius