The Money Godmother's Blog

It seems parents are doing more talking about money with their kids these days–at least those answering the annual survey from T.Rowe Price do.

Released last week, the survey revealed that 46% of parents are having more conversations with their kids about money compared to a year ago. Additionally, about half, or 48%, of parents spent about the same amount of time talking with their kids about money as they did last year.

Top reasons for the increase in conversation?

• 38% said their children can understand more and need to learn.

• 17% said the economy or a change in their financial situation prompted the conversations.

From the kids’ perspective, the most popular topics are saving, how to make money, and allowances. Yet, 45% of kids didn’t know or couldn’t name a money topic they wanted their parents to discuss. When asked where they turn for answers about money, a majority (54%) of kids said they go to their moms first. About 40% go to their dads first.

But when it comes to discussing specific family finances, most parents say they avoid the details–nearly one third will avoid that discussion.

How does the survey compare to what happens in your family?

According to Bankrate.com, as many as 72 million American consumers would save on groceries, doctor’s visits, and health insurance premiums if they would just eat better.

According to Bankrate.com, as many as 72 million American consumers would save on groceries, doctor’s visits, and health insurance premiums if they would eat better.

Credit, credit, credit.

We hear a lot about credit and debt, creditworthiness, credit history, credit scores. Just how are Americans handling the changing credit scene? It seems consumer credit behavior is steady.

FICO, the agency that many organizations turn to for credit scoring, has done some research on what’s happening with credit scores since the economic downturn. There are almost as many Americans with improving credit scores as there are Americans with declining scores.

Most bank risk managers surveyed by FICO in the third quarter of 2011 were pessimistic. Those surveyed anticipate more consumers will be delinquent with residential mortgages, auto loans, credit cards, and student loans.

According to FICO, consumers whose credit scores dropped recently are much different than those whose scores dropped early in the economic crisis. Mortgage pressures were not as much of a factor in severe delinquencies than formerly assumed.

FICO research shows “consumers who defaulted after 2008 look more like good consumers than those who defaulted between 2005-2007. They were on the books longer, had fewer months of minor delinquency prior to the default, and have higher scores even after the default. They also defaulted for more money: The average balance on defaulted accounts in 2008-2010 was $5,543 compared to $4935 in 2005-2007.”