2015 Family Financial Trade-offs Survey Highlights

2015 FAMILY FINANCIAL TRADE-OFFS
SURVEY
T. Rowe Price

2
Contents
T. Rowe Price Family Financial Trade-offs Survey
Saving
for
retirement
Saving for
kids’
education
Perceptions About Saving for Retirement & College Education
Respondent College Experience
Family Financial Profile
Saving for College
Paying for College
Saving for Retirement
Findings on Millennials vs. Gen Xers
Gender Data Cuts
Respondent Profile
Objectives & Methodology

PERCEPTIONS ABOUT SAVING
FOR RETIREMENT & COLLEGE
EDUCATION

4
Agree Statements – College Perceptions
N=2,000 (Total respondents)
Saving for
kids’
education
How much do you agree or disagree with each of the following statements?
(Four-point scale – displaying percent that agree)
91%
85%
62%
54%
40%
37%
My kids believe they will go to college
I think my kids are smarter than their peers
Investing in my kids’ college education is actually an investment in my own
retirement
If my kids don’t have a college education, they won’t get a job and will live
with me
I don’t care if my children go to college at all. It is their choice
College isn’t worth the expense

5
Agree Statements – Paying for College
Saving for
kids’
education
85%
79%
74%
63%
56%
54%
51%
49%
43%
Kids who contribute toward paying for college care more and work harder at
getting good grades
I want my kids to worry about money less than I did while I was in college
After experiencing the burden of student loans, I would not want my kids to
experience the same thing*
I feel guilty that I won’t be able to pay more for their college
If a family member is saving for my kids’ college education, I’m comfortable
asking how much they are planning on saving
I regularly talk to my children about how their college will be paid for
I’d be willing to get a second or part-time job to pay for my kids’ college
education
I’d be willing to delay my retirement to pay for my kids’ college education
I’ve raised my kids for 18 years; they’re on their own financially after that
* Only asked to those who had student loans (N=837)
60%
saying
either

6
Agree Statements – Retirement Perceptions
Saving for
kids’
education
58%
51%
49%
47%
43%
34%
I sometimes feel like a failure because I’m not providing enough for
my family and our future
I am trying not to think about retirement and will worry about it later
I don’t think I will ever retire
Instead of retiring, I plan on starting a new career
I lose sleep worrying about how I’m going to pay for retirement
I don’t worry about retirement because I will have a large inheritance

7
Agree Statements – Saving for Retirement
Saving for
kids’
education
80%
70%
61%
58%
56%
55%
It’s important for me that my savings are easily accessible so that I
can easily get to my money if I need it
How my parents have managed saving for retirement has impacted
how I save for retirement
Compared to my peers, I feel ahead of the curve in terms of saving
for retirement
Seeing what happened to my parents' retirement savings during the
recession has really had an impact on how much I save and where I
put my money
I’m more likely to win the lottery than receive any money from Social
Security
Because my parents are struggling with retirement (or will be), I
started saving early for my retirement so I don’t end up like them

8
Agree Statements – Balancing
Saving for
kids’
education
63%
63%
60%
59%
53%
46%
I would rather pay any college loans (mine or my kids’) later than
divert money now away from retirement saving to college savings
I feel overwhelmed by financial pressures
Conversations about saving for retirement or college usually fill me
with a lot of anxiety
Because my kids will go to college before I retire, I feel like I should
put money towards that first and save for retirement after
I would rather dip into my retirement savings to pay for my kids’
college education than have them take on student loans
You shouldn’t put any money in savings until you’ve paid off all your
debt

10
Education Level
1%
10%
17%
14%
42%
18%
Did not graduate HS
HS graduate
Some college
Associate degree
Bachelor's degree
Graduate degree
Q9. What is the highest level of education you’ve completed?
• The majority of respondents attended college (89%*), with 60% having a
Bachelor’s degree or higher
Note: Rounding may cause percentages not to add to 100%
* Because of rounding, combined percentage may differ than sum of bars in chart

11
Who Paid for Respondents’ College
Education
76%
48%
39%
4%
Myself
Parents
Grants or scholarships
Other relatives
N=1,799 (Attended college)
Q10. Thinking about all of your undergraduate college expenses, who helped pay for the cost?
(Check all that apply)
• For respondents who attended college, three-quarters paid at least some of the
expense themselves, while just under half relied on their parents to help pay

12
Paying for Undergraduate Expenses
74%
61%
52%
Regular income from working
Student loans
Savings
N=1,368 (Helped pay for their own college expense); N=837 (Took student loan)
Q11. Which of the following have you used to pay
for the portion of your undergraduate college
expenses that you covered yourself?
• For respondents who helped pay for their own college expense, three-quarters
have used regular income, and 61% took college loans
• Two-thirds of respondents who took out a student loan are still paying it off
Q12. Are you still paying off student loans?
66%
34%
Yes
No

13
The Impact of Student Loans
N=837 (Took student loan)
• The majority of respondents who took out a student loan say they took on too
much debt to pay for college, and three-quarters say that paying off student
loans has impacted their ability to pay for other things
Q13. Looking back, do you think that you took on too
much debt to pay for your college education?
63%
37%
Yes
No
45%
44%
44%
37%
33%
23%
17%
25%
Take better vacations
Save for retirement
Save for my kids' college
Buy a house
Buy a car
Pay for my kids' preschool or primary ed.
Get married
None of the above
Q14. Has paying off student loans impacted
your ability to do any of the following?

14
How Parents Paid for Respondents’
College Education
55%
41%
27%
22%
22%
20%
16%
13%
12%
Regular income from working
Regular savings accounts
College savings accounts
Student loan in my name
Credit cards
Personal loan in their name
Money given to them by my grandparents
Retirement savings accounts
Home equity loan
N=854 (Parents helped pay for their college education)
Q15. Which of the following did your parents use to pay for the
portion of your undergraduate college expenses that they paid for?
• Parents who contributed to respondents’ college education did so primarily
through regular income and regular savings accounts
• Parents were equally likely to take out a loan themselves or pay off a student
loan that was in the respondent’s name

16
Saver vs. Spender
N=2,000 (Total respondents); N=1,726 (Married)
• Respondents are split relatively evenly between savers (48%) and spenders (52%)
• 59% of married respondents say their spouse/partner is a “spender”
Q16. Would you consider yourself to
be more of a saver or a spender?
18%
34%
38%
10%
Definitely a spender More of a spender
More of a saver Definitely a saver
Q17. Would you consider your spouse/partner
to be more of a saver or spender?
23%
36%
31%
10%
Definitely a spender More of a spender
More of a saver Definitely a saver

17
Financial Advisors
Q18. Do you have a financial advisor (who is paid for their service)?
39%
61%
Yes
No
• Slightly more than one-third of respondents have a paid financial advisor

18
67%
33%
Kids’ Monetary Gifts
Q62. Do your kids receive monetary gifts from
grandparents, friends, and/or family members each year?
Yes
No
• Two-thirds of respondents say their kids regularly receive monetary gifts
N=2,000 (Total respondents); N=1,338 (Kids receive monetary gifts)
Q63. On average, how much in total does
each child receive as gifts each year?
24%
43%
24%
9%
Less than $100
$100 to $499
$500 to $999
$1,000 or more

19
What Happens to Monetary Gifts
N=1,338 (Kids receive monetary gifts)
• Respondents are most likely to let kids spend the monetary gifts they receive,
or they put the money in a regular savings account
Saving
for
retirement
Saving for
kids’
education
Q64. What usually happens to the money your kids receive as gifts?
43%
41%
28%
26%
23%
We let our kids spend it on an item they want
We put it in a regular savings account
We put it in a college savings account
We place it in our kids’ piggy bank
I spend it on things they need such as clothes and school supplies

20
Windfall
• With a windfall, respondents are equally likely to use it for college savings,
retirement savings or reducing debt
Saving
for
retirement
Saving for
kids’
education
Q60. If you suddenly had a windfall of money like an inheritance
or bonus, which of the following would you do with the money?
(Choose up to three)
44%
44%
44%
29%
21%
17%
14%
12%
Put it toward college savings
Put it toward retirement savings
Use it to reduce my debt
Add it to my emergency fund
Put it toward a major purchase
Put it toward a vacation or trip
Give to charity
Spend on everyday purchases

21
Marital Arguments
8%
11%
23%
24%
25%
31%
30%
31%
41%
35%
28%
25%
26%
23%
19%
20%
Money in general
How to raise our kids
Saving for retirement
Saving for kids' education
Never Rarely Occasionally Frequently
N=1,726 (Married)
Q20. How often do you and your spouse/partner disagree about each of the following?
• Married respondents argue with their spouse/partner most frequently about
money in general, followed by how to raise their kids
• Spenders are more likely than savers to argue about saving for retirement (58%
vs. 36%) and saving for kids’ education (56% vs. 34%)
Top 2 Box
67%
58%
47%
45%
54% top 2
box for either

22
Planning for Kids’ Education With an Ex
N=94 (Divorced/separated)
• Just under half of separated/divorced respondents argue with their
ex-spouse/partner about saving for kids’ education at least occasionally
Q21. How often do you and your ex-spouse/partner disagree
or argue about the best way to save for your kid’s education?
32%
22%
30%
16%
Never
Rarely
Occasionally
Frequently

23
Parental Concerns
64%
63%
60%
60%
60%
59%
50%
48%
48%
45%
40%
The cost of health care when I'm retired
My kids having the financial resources to go to college
Balancing the need to save for retirement and my kids' education
Running out of money in retirement
My kids being able to support themselves after college
Being able to retire young enough to enjoy myself
My kids acting irresponsibly in college or as a young adult
My parents being able to support themselves through retirement
My kids being a target of bullying
Having enough money to take regular vacations
Giving my kids all the presents I want to this holiday season
Q19. How concerned are you with each of the following?
(Five-point scale – displaying top 2 box)
• Respondents are most concerned with the rising cost of health care and being
able to pay for kids’ college education

24
Family Saving Priorities
• Respondents are more focused on saving for kids’ college than saving for
retirement
43%
57%
Saving for retirement
Saving for kids' education
Q22. Which of the following is the higher priority for you and your family?

26
Saving for College – Frequency
• Currently, 79% of respondents put away money for their kids’ college education
at least sometimes, and an additional 5% are not currently saving, but have
some money put aside
Q23. Currently, how often do you put money aside for your kids’ college education?
Saving
for
retirement
Saving for
kids’
education
10%
25%
24%
30%
5%
5%
1%
Never
Sometimes, but not as often as I should
I frequently put money aside
I save automatically each month from my bank account
I'm not currently saving, but I already have money set
aside for my kids' college education
I am not saving yet but plan to
I'm not sure

27
Saving for College – Starting
N=1,683 (Have college savings)
• Respondents are most likely to begin saving for kids’ college education once
their first child is born
Saving
for
retirement
Saving for
kids’
education
Q24. When did you first start saving for your kids’ education?
41%
24%
11%
9%
8%
6%
Once my first child was born
When my first child started school
When my kids started thinking about which college to go to
When we were planning to have children
When my second child was born
When I heard my friends were saving

28
Saving for College – Types of Accounts
• Regular savings accounts are the most common account used for college
savings
• An almost equal number of respondents use a 529 account and a 401(k)
Saving
for
retirement
Saving for
kids’
education
Q25. What types of accounts do you use for college savings?
45%
31%
30%
26%
24%
18%
15%
13%
12%
9%
8%
2%
Regular savings account
529 account
401(k) account
Checking account
Savings bond
Certificate of deposit (CD)
Traditional IRA
Roth IRA
Individual securities
Annuity
UGMA or UTMA account
I'm not sure
Average number
of accounts = 2.3

29
Why Not a 529?
N=1,167 (Have college savings, but not a 529)
• Lack of awareness is the primary reason respondents don’t use a 529
• One-quarter of respondents believe there is limited access to money in a 529
Saving
for
retirement
Saving for
kids’
education
Q26. Why aren’t you using a 529 account to save for college?
28%
25%
19%
18%
15%
13%
12%
9%
9%
I don't know what that is
I want to be able to access the money I save at any time for any reason
I want to, but haven't had the time to open an account
I don't know in which state my kid(s) will go to college
Because then I won't be able to get financial aid
I've heard negative things about them
I can't afford the minimum requirements and fees
I don't know how to open an account
I don't like the plan that is offered by my state

30
Negative Things About 529 Accounts
N=155 (Have college savings, but not a 529; have heard bad things about 529s)
• There are several misperceptions about 529 accounts
Saving
for
retirement
Saving for
kids’
education
Q27. What negative things have you heard about 529 accounts?
47%
43%
43%
41%
23%
There are high fees
The money you don't use for college is lost
You can lose money in them
There are better accounts for college savings
Our state doesn't have a good plan

31
Current College Savings
• 43% of respondents have less than $10,000 saved for their kids’ college education
• One-third of respondents are very/extremely comfortable with their current college
savings
Q28. How much money do you have
saved for your kids’ college education?
8%
23%
34%
23%
12%
Not at all comfortable
Not very comfortable
Somewhat comfortable
Very comfortable
Extremely comfortable
Q29. How comfortable are you with where you are,
in terms of saving for your kids’ college education?
9%
17%
17%
22%
19%
10%
6%
Less than $1,000
$1,000 to $4,999
$5,000 to $9,999
$10,000 to $19,999
$20,000 to $49,999
$50,000 to $99,999
$100,000 or more

32
Reducing College Saving
N=1,584 (Currently saving for college)
• Job loss would be the primary reason respondents would reduce the amount
they save for college
Saving
for
retirement
Saving for
kids’
education
Q30. Which of the following would cause you to reduce the
amount you regularly save for your kids’ college education?
54%
22%
21%
20%
19%
18%
18%
17%
17%
14%
8%
Loss of a job
Need a new car
Support your parents or other relatives
Realize the need to catch up on retirement savings
Need to pay for home improvement project
Birth or adoption of a new child
Need to relocate
Holiday shopping
Feel it will be impossible to meet increased cost of college
Expensive family vacation
Discouraged by the low college graduation rates

33
Saving Differently for Different Kids
Q44. Do you save differently for your kids’
college education depending on which kid?
36%
64%
Yes
No
• More than one-third of respondents who have more than one kid say they save
differently, depending on which kid they are saving for
N=1,221 (Have more than one kid); N=437 (Save differently)
Q45. Which of the following are true?
49%
41%
40%
37%
32%
I save more for my older kid(s)
because they will go first
The amount I save for my kids’
college is based on how well I think
they’ll do
I base how much I save for each kid
based on where they want to go
I base college savings for each kid
based on how much they will receive
in grants and scholarships
I base how much I save on how well
they do in school before college

35
Paying for Kids’ College
N=2,000 (Total respondents); N=1,678 (Will not be able to cover all college costs)
• All but 16% of respondents will need help paying for their kids’ college education
• Parents plan to rely on grants/scholarships and their kids (through loans and
working) to help cover the cost of their college education
Q31. Which of the following best describes how you
feel about saving for your kids’ college education?
53%
52%
46%
34%
20%
16%
15%
11%
8%
7%
Grants and/or scholarships
Student loans (kids responsible)
Kids will work
Through regular income
Personal loan (I am responsible)
Credit cards
Money from retirement accounts
Home equity loan or 2nd mortgage
Other family members
Sale of real estate
Q32. How do you think you will cover
the remaining cost for your kids’ college?
4%
50%
30%
16%
I don’t plan to save anything for college
I will be able to save enough to pay for
some of the cost of college
most of the cost of college
the entire cost of college

36
Taking on Debt to Pay for College
N=1,678 (Will not be able to cover all college costs)
• Just over half of respondents are willing to take on $25K or more of debt to pay for
their kids’ college education
• Respondents are consistent in the amount of debt they think is acceptable for
themselves and their kids
Q33. How much debt are you willing to take on
personally to provide your kids with a college education?
Q34. How much debt are you willing to let
your kids take on to get a college education?
11%
18%
20%
17%
12%
9%
5%
9%
None
Less than $10,000
$10,000 to $24,999
$25,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $150,000
Whatever it takes
9%
18%
23%
17%
10%
7%
4%
12%
None
Less than $10,000
$10,000 to $24,999
$25,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $150,000
Whatever it takes

37
Paying Off Student Loans
N=1,678 (Will not be able to cover all college costs); N=316 (Not likely to help pay off student loans)
• 44% of respondents say they are very/extremely likely to help their kids pay off
student loans
Q35. How likely are you to help your kids
pay off their student loans after they graduate?
57%
52%
39%
14%
If they are working, then they can
afford to pay off loans
It’s not my responsibility to pay off their
loans
I’ll need to be saving for retirement
I’d prefer my kids live at home after
college so they can have money to pay
their own loans
Q36. Why aren’t you more likely to help your kids
pay off their student loans after they graduate?
6%
13%
33%
28%
16%
4%
Not at all likely
Not very likely
Somewhat likely
Very likely
Extremely likley
I'm not sure

38
Payback
• Nearly half (43%) of respondents expect their kids to pay them back (at least
partially) for college expenses
Saving for
kids’
education
Q37. Do you expect your kids to pay you back for any of their college expenses that you cover?
30%
13%
57%
Yes, partially
Yes, in full
No

39
Acceptable Monthly Loan Payments
• Nearly half of respondents (47%) are willing to let their kids take on monthly
debt payments of $300 or more
Saving for
kids’
education
Q38. Assuming they will have 10-year student loans, how much of a monthly payment are
you willing to let your kids take on after college to pay off their student loan debt?
7%
9%
20%
17%
8%
7%
7%
4%
5%
3%
3%
10%
None
Less than $100
$100 to $199
$200 to $299
$300 to $399
$400 to $499
$500 to $599
$600 to $699
$700 to $799
$800 to $899
$900 to $999
Whatever it takes

40
Asking for Help With College Expenses
• Respondents are more likely to ask for help from their spouse’s/partners’
parents than their own
Saving for
kids’
education
Q39. Have you asked any of the following people to help pay for your kids’ college education?
16%
14%
26%
35%
10%
14%
13%
12%
0% 10% 20% 30% 40% 50%
Friends
Other Family
Parents
In-Laws
Yes
Plan on Asking

41
Reasons for Not Asking for Help
N=949 (Have not asked anyone for help)
• The majority of respondents who have not asked anyone for help believe that it
is not others’ responsibility to pay for their kids’ college education
Saving for
kids’
education
Q40. Why haven’t you asked family or friends for help paying for your kids’ college education?
68%
37%
30%
18%
9%
7%
6%
It's not their responsibility
I never ask others for money
I would feel uncomfortable asking
I don't need any help
We don't talk about money in our family
I'm too embarrassed
I wouldn't want to reveal anything about my finances

42
Does Having a Plan Facilitate Asking for
Help?
Q41. Would you be more likely to ask others to help pay for your
kids’ college if you had a specific plan in place for college
savings and knew exactly how much help you needed?
20%
80%
Yes
No
• For one in five respondents, having a college savings plan would make them more
likely to ask others for help
N=949 (Have not asked anyone for help)

43
Expectations About Who Will Help
• Over half (57%) of respondents are expecting help from family/friends in paying
for their kids’ college education
Saving for
kids’
education
Q42. Whether or not you’ve asked, who of the following do
you expect to help pay for your kids’ college education?
38%
33%
13%
7%
43%
Your spouse's/partner's parents
Your parents
Friends
None of the above

44
Expectations About Who Will Help
N=Varies by category (based on positive responses to Q42)
• Respondents are more likely to be aware of how much friends and in-laws will
contribute than how much their parents will
Saving for
kids’
education
Q43. Are you aware of how much each of the following is
planning on contributing to your kids’ college education?
77%
69%
59%
41%
Friends
Your spouse's/partner's parents
Your parents

46
Saving for Retirement – Frequency
• Currently, 89% of respondents put away money for their retirement at least
sometimes, and an additional 4% are not currently saving, but have some
money put aside
Q47. Currently, how often do you put money aside for your retirement?
Saving
for
retirement
Saving for
kids’
education
5%
19%
22%
48%
4%
2%
1%
Never
I'm not currently saving, but I already have money set
aside for my retirement
I am not saving yet but plan to
I'm not sure

47
Saving for Retirement – Types of Accounts
• 401(k) accounts are the most common account used for retirement savings
Saving
for
retirement
Saving for
kids’
education
Q48. What types of accounts do you have for your retirement savings?
69%
33%
25%
24%
20%
16%
15%
401(k) account
Regular savings account
Traditional IRA
Roth IRA
Regular investment account
Certificate of deposit (CD)
Annuity

48
Why Not a Roth IRA?
N=1,512 (Do not have a Roth IRA)
• Lack of awareness is one of the primary reasons respondents do not have a
Roth IRA
Saving
for
retirement
Saving for
kids’
education
Q49. Why don’t you have a Roth IRA account to save for retirement?
20%
20%
17%
16%
16%
15%
9%
8%
6%
I’m already contributing the maximum to my workplace plan
I don't know what that is
I’m already saving in a Roth 401(k) at work
I want to but haven’t had time to open an account
I’m saving enough in my workplace plan and don’t need to save more
I want to be able to take out my contributions at any time without penalty
I don’t know how to open an account
I’ve heard negative things about Roth IRAs
I do not meet the eligibility requirements to contribute to a Roth IRA

49
IRA Savings – Frequency
N=815 (Have an IRA)
Q50. How often do you put money aside in your IRA?
Saving
for
retirement
Saving for
kids’
education
20%
31%
34%
13%
2%
I haven't put money in my IRA for awhile
I'm not sure
• Two-thirds of those who have an IRA put money in frequently or automatically
each month

50
Current Retirement Savings
• Retirement savings amounts vary consistently from low to high, with 31% saying
they are very/extremely comfortable with where they are in terms of saving for
retirement
Q51. How much money do you
have saved for your retirement?
15%
21%
33%
20%
11%
Not at all comfortable
Not very comfortable
Somewhat comfortable
Very comfortable
Extremely comfortable
Q52. How comfortable are you with where
you are, in terms of saving for your retirement?
17%
12%
15%
14%
15%
13%
14%
Less than $10,000
$10,000 to $24,999
$25,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 or more

51
Old Job Retirement Plans
• Of those who have had a retirement plan with a previous employer, the majority
roll it over into an IRA or workplace retirement plan
Saving
for
retirement
Saving for
kids’
education
Q53. Thinking back on old retirement plans you had at
previous jobs, what have you done with those accounts?
31%
28%
27%
20%
21%
Rolled it over into IRA
Rolled it into new employer’s workplace retirement plan
Cashed it out
Left it in my former employer’s workplace retirement plan
I’ve never had a retirement plan with a previous job

52
Why Cash Out Retirement Accounts
N=531 (Cashed out a retirement account)
• Day-to-day expenses is the primary reason given by those who cashed out a
retirement plan
Saving
for
retirement
Saving for
kids’
education
Q54. Why did you cash out a retirement account held with a former employer?
37%
29%
28%
25%
21%
21%
19%
19%
12%
Needed it for day-to-day living
I was young and didn’t know any better
It was a really small amount and wouldn’t have made much of a difference
Put it toward paying off credit card debt
Put it toward student loans or college costs
Put it toward a medical expense
Put it toward a major purchase (e.g., house, car, etc.)
I have plenty of time to save for retirement and needed the money more…
I didn’t know what else to do with it

53
Converting to a Roth IRA
Q55. Have you ever converted assets held in
a Traditional IRA or tax-deferred workplace
retirement plan into a Roth IRA?
21%
79%
Yes
No
• One in five respondents have converted a traditional IRA or workplace plan to a
Roth IRA
N=2,000 (Total respondents); N=424 (Converted account to Roth IRA)
Q56. Why did you convert assets into a Roth IRA?
58%
44%
36%
For the tax-free savings that Roth
IRAs offer
Someone advised me to do so
I’m young, and it’s not a big deal to
pay taxes now

54
Reducing Retirement Saving
N=1,780 (Currently saving for retirement)
• Job loss would be the primary reason respondents would reduce the amount
they save for retirement
Saving
for
retirement
Saving for
kids’
education
Q57. Which of the following would cause you to reduce
the amount you regularly save for your retirement?
58%
18%
17%
16%
16%
16%
16%
14%
13%
11%
9%
Loss of a job
Need a new car
Support your parents or other relatives
Need to pay for home improvement project
Birth or adoption of a new child
Saving for future health care costs
Need to relocate
Holiday shopping
Reading about the cost of college
Expensive family vacation
Reading about the cost of retirement

55
Paying for Things With Retirement
Money
• 58% of respondents have taken money out of a retirement account to pay for
something else, with the top response being pay off debt
Saving
for
retirement
Saving for
kids’
education
Q58. Which of the following things have you paid for with money taken from a retirement account?
20%
13%
12%
12%
11%
11%
11%
10%
10%
9%
9%
8%
42%
Pay off debt
Day-to-day expenses
Kids' education
To cover expenses while unemployed
Car purchase or repair
Vacation
To pay taxes
Health care costs
Downpayment on a home
Home repair/renovation
Replenish emergency fund
Wedding
I have never taken money out of retirement savings to pay for something

FINDINGS ON MILLENNIALS VS.
GEN XERS

57
Age Differences (21-34 vs. 35-50)
* A complete list of significant findings by gender is available in the appendix
Saving
for
retirement
Saving for
kids’
education
Younger respondents are more likely than older respondents to still be paying off student loans
(74% vs. 56%), feel that they took on too much debt to pay for college (70% vs. 55%), and say
that paying off student loans has impacted their ability to save for their kids’ college education
(48% vs. 38%).
In prioritizing saving for kids’ college and saving for retirement, younger respondents are more
likely to say kids’ education is the higher priority (62% vs. 53%), and they are more likely to put
aside money for college frequently (28% vs. 20%).
Younger respondents are less likely to be using a 529 for college savings (22% vs. 39%), and for
those who aren’t using a 529, younger respondents are more likely to say they are unaware of
what a 529 is (29% vs. 26%).
While younger respondents appear to have more financial concerns, they are more likely than
older respondents to say they feel comfortable with where they are for college savings (45% vs.
26%) and retirement savings (38% vs. 24%), and they are more likely to say they will be able to
pay for most or all of their kids’ college education (52% vs. 39%).

58
Age Differences (21-34 vs. 35-50) (Cont.)
Saving
for
retirement
Saving for
kids’
education
Younger respondents appear to have lower expectations about their kids’ level of responsibility, as
they are more likely to say they will help pay off student loans (48% vs. 39%) and less likely to say
they expect kids to pay them back for the college expenses they cover (49% vs. 65%).
Younger respondents are more likely than older respondents to have a Roth IRA (19% vs. 29%),
and of those who do not have a Roth account, younger respondents are more likely to say they
don’t know what it is (23% vs. 17%).

59
Agree Statements – Findings by Age
Saving for
kids’
education
68%
62%
64%
49%
58%
44%
49%
37%
I feel overwhelmed by financial pressures
I would rather dip into my retirement savings to pay for my kids’
college education than have them take on student loans
I’m more likely to win the lottery than receive any money from
Social Security
I lose sleep worrying about how I’m going to pay for retirement Millennials
Gen X

60
The Impact of Student Loans
N=837 (Took student loan)
Q13. Looking back, do you think that you took on too much debt to pay for your college education?
70%
30%
Yes
No
55%
45%
Yes
No
Millennials Gen X

61
How Parents Paid for Respondents’
College Education
18%
9%
Retirement savings accounts
Millennials
Gen X
N=854 (Parents helped pay for their college education)
Q15. Which of the following did your parents use to pay for the
portion of your undergraduate college expenses that they paid for?

62
Saving for College – Types of Accounts
Saving
for
retirement
Saving for
kids’
education
Q25. What types of accounts do you use for college savings?
34%
25%
401(k) account
Millennials
Gen X

63
Paying for Things With Retirement
Money
Saving
for
retirement
Saving for
kids’
education
Q58. Which of the following things have you paid for with money taken from a retirement account?
35%
49%
I have never taken money out of retirement
savings to pay for something
Millennials
Gen X

64
24%
76%
Converting to a Roth IRA
Q55. Have you ever converted assets held in a Traditional IRA
or tax-deferred workplace retirement plan into a Roth IRA?
Yes
No
N=2,000 (Total respondents); N=424 (Converted account to Roth IRA)
Millennials Gen X
19%
81%
Yes
No

66
Gender Differences
Saving
for
retirement
Saving for
kids’
education
In terms of paying for their own college expenses, women are more likely than men to rely on
grants and scholarships (43% vs. 35%) and have used student loans (64% vs. 58%). Men are
more likely to have parents who used home equity loans (14% vs. 8%) and retirement savings
(17% vs. 9%) to pay for their college education.
Similarly, women are more likely than men to say they will use grants and scholarships (60% vs.
46%) and student loans (56% vs. 49%) to cover the cost of their kids’ college education.
Women are more likely than men to expect their kids to work to help pay for college (49% vs.
43%) and to pay them (parents) back for the expenses they incur paying for college (64% vs.
50%).
In general, women are willing to take on less debt (for themselves or their kids) than men are, and
men are more willing to ask others to help pay for their kids’ education.
Women are more likely than men to be concerned about running out of money in retirement (63%
vs. 57%) and the cost of health care when they are retired (66% vs. 61%), while men are more
concerned about their ability to buy presents during the holiday season (43% vs. 36%).

67
Gender Differences (Cont.)
Saving
for
retirement
Saving for
kids’
education
Men are more likely than women to save regularly/frequently for retirement (61% vs. 47%), have
more money saved for kids’ education (45% vs. 32% - $10K or more), and have more money
saved for retirement (80% vs. 62% - $25K or more).
Women are more likely than men to be unaware of what a 529 is (32% vs. 23%) and what a Roth
IRA is (25% vs. 15%).
Women are more likely than men to say they have never taken money out of retirement to pay for
something else (47% vs. 38%).
Women are more likely than men to say they feel overwhelmed by financial pressures (68% vs.
58%).

69
50%50%
Respondent Profile
27%
25%
24%
23%
South
Northeast
West
Midwest
Q2. RegionQ1. Age
50%50% 35-5021-34
Q3. Gender
MenWomen
39%
43%
13%
4%
1
2
3
4+
Q4. # Kids in HH (<16)
28%
72%
Q5. Expecting
Yes
No
86%
9%
5%
0%
Married
Single
Separated/Divorced
Widow/Widower
Q8. Marital Status
Note: Rounding may cause percentages not to add to 100%

70
Respondent Profile
Q66. What is your annual
household income before taxes?
73%
11%
9%
4%
2%
1%
0%
0%
Employed full time
Stay-at-home parent
Employed part time
Self-employed
Not currently employed
Student
Retired
Prefer not to answer
Q67. What is your current employment status?
3%
3%
3%
4%
6%
22%
23%
14%
7%
4%
3%
2%
1%
2%
2%
Less than $25,000
$25,000 to less than $30,000
$30,000 to less than $35,000
$35,000 to less than $40,000
$40,000 to less than $50,000
$50,000 to less than $75,000
$75,000 to less than $100,000
$100,000 to less than $125,000
$125,000 to less than $150,000
$150,000 to less than $175,000
$175,000 to less than $200,000
$200,000 to less than $225,000
$225,000 to less than $250,000
$250,000 or more
Prefer not to answer

72
Objective & Methodology
Saving
for
retirement
Saving for
kids’
education
Objective
Primary Objective: After T. Rowe Price's 2014 Parents, Kids & Money Survey found that 52% of
parents said it was more important to save for their kids' college rather than their own retirement,
the firm endeavored to further understand how families balance the competing priorities of saving
for retirement and college.
Methodology
• T. Rowe Price commissioned an online survey of parents of children age 15 and younger who
have a retirement savings account
• The survey was fielded from December 18-29, 2014, with 50/50 quotas for gender and age group
• A total of 2,000 parents in the U.S. participated; the sampling error for a sample of 2,000 is
+/-2.2% at the 95% confidence interval
• The survey was fielded through MarketTools, Inc.

2015 Family Financial Trade-offs Survey Highlights

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