majority of parents experience feelings of guilt about their parenting decisions, which often causes them to overspend on their kids, according to a survey by Ameriprise Financial.

Parents also told the company that they reported being caught between conflicting financial goals for themselves and their children.

“ It is clear parents are concerned about the trade-offs they are making for their children,” says Deana Healy, vice president of financial planning and advice at Ameriprise.

The survey included more than 3,000 parents with at least one child( including newborns and those up to 30 years of age) and with $ 50,000 or more in investable assets.

Seventy-two percent of parents reported feeling guilt about their parenting decisions and said it caused them to overcompensate by spending extra money on their children. Sixty percent said they were concerned that the financial trade-offs they need to make— either saving for their retirement or saving for their children’ s education— had affected their long-term financial health.

To help solve those conflicts, turning to an advisor helped, and 88 % of those who turned to professionals said the advice was helpful.

“ The advisor can help parents implement best practices” for themselves and set up their children for financial success, Healy says.“ Parents are under pressure to be perfect. There is never enough money, so an advisor can help them budget.”

Eighty percent of those surveyed said that financial factors had weighed into their decision to have children.“ Our research confirms what most parents in the throes of caregiving are thinking— that balancing

Seventy-two percent of parents reported feeling guilt about their parenting decisions and said it caused them to overcompensate by spending extra money on their children. family finances while juggling shifting priorities can feel challenging,” Healy says.“ Regardless of net worth, most parents have a finite amount of money to allocate to their most important financial goals. We know that it’ s achievable to feel financially confident; it comes down to careful planning.”

Although most of the parents said parenthood brings them joy and purpose, most of those surveyed also said the job is harder than they expected, both emotionally and financially. Sixty percent of parents are concerned that the trade-offs they are making daily will affect their long-term financial future.

“ Parenting brings so much joy. But it can come with so many expectations and competing priorities, especially when it comes to managing family finances,” Healy says.“ Our advice is to be clear about your financial priorities today so you don’ t lose sight of future goals.”

Parents said they are trying to give their children a good financial start. Seventy-six percent said they helped their children open savings accounts; 68 % encouraged their kids to save for a short-term goal; and 61 % said they tried to stop their kids from spending money unwisely. In addition, 70 % said they involved their children in family financial decisions to help instill values and principles.

The study participants said they try to instill financial goals in their children by letting them make their own choices with money— by giving them an allowance and paying them for chores.

“ Parents have a lot on their plates when it comes to raising a family, and finances can be a source of stress, but they don’ t have to go at it alone,” Healy adds.“ Working with a financial advisor can help people feel empowered and in control financially, so parents can spend more time on what truly matters— their children.”

— Karen DeMasters

12 | FINANCIAL ADVISOR MAGAZINE | MAY 2025 WWW. FA-MAG. COM