With a lot of kids heading off to college in the coming weeks, parents may be struggling to decide whether or not they should give their kids spending money. Well, if they do, a new report suggests they may never know what their kids will actually be using that money for.
A new survey reveals that 34% of Millennials admit they’ve lied to mom and dad about where they’re spending their parents’ money while in school, while 12% say they haven’t lied, but that’s because their parents haven’t actually asked.
Overall, about 67% of Millennials who get money from their parents say they get about $2,000 or less a year. As for what they’re spending it on, 76% mostly use it to eat out, while 59% use it buy clothes, 53% say they use it for drinks and snacks, and 15% admit they use it for partying.
Of course, not all kids are being completely bankrolled by their parents. In fact, 60% say they worked at some point while in college, while 44% have worked every year. Plus, of those getting recreational money from their parents, 60% contribute monetarily to their education and 65% are taking out student loans to cover costs.
- Finally, if parent are worried about whether giving their kids money is doing them good, it seems the answer is yes. The survey finds that 70% of those receiving financial support from their parents say it has contributed to their academic success. In addition, 85% say managing that money helped them learn personal finance skills.
Source: Market Watch