BALTIMORE, March 27, 2013

T. Rowe Price’s 2013 Parents, Kids & Money Survey reveals that many parents are not taking the necessary steps to prepare their families’ finances for the long term. Although more than half of parents and kids believe that kids will be better off financially when they reach their parents’ ages, conversations and actions often focus on short-term needs versus the behaviors needed to achieve long-term success. 

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In order to help families have effective conversations about money, T. Rowe Price today launched MoneyConfidentKids.com, a mobile-friendly resource for parents and educators with money games, tips, and information to facilitate useful discussions and teach kids about money.

Survey Key Findings:

• Missing the basics: Half of parents surveyed do not save regularly for retirement (50%). Additionally, many parents do not maintain an emergency fund for unexpected expenses (58%), do not have life insurance (54%), and do not have an up-to-date will (74%).
• Family finances and long-term financial topics are off the table: A large majority of parents (73%) report they are having regular conversations with their kids about money, but the conversations revolve around short-term financial topics like back-to-school shopping (62%) rather than long-term planning such as family savings goals (39%). Additionally, 14% of parents say they discourage kids from talking about money altogether.
• Going to college is important, but saving for college isn’t happening: Kids (70%) and parents (66%) agree that the best way to prepare for a strong financial future is with a good education, but their actions do not align with their beliefs. Only 41% of parents are regularly saving for college for their kids. In fact, more parents (46%) save regularly for vacation than for college, although 59% have talked to their kids about how to pay for college.
• Kids are focused on short-term spending: While 25% of kids save their money for long-term goals, 63% save their money for short-term goals. Additionally, 25% of kids say they spend their money right away on things for which they were not saving.
• Kids are unsure how to secure their financial future: Today’s kids will likely need well over a million dollars for a secure retirement, given the growth of inflation, but are unrealistic about how to get there. Only 21% believe the most likely way to obtain a million dollars is to invest in stocks and bonds, and almost as many (24%) believe the most likely way to gain a million dollars is by becoming famous.
  

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• Parents are hoping to rely on kids for financial support: 84% of kids think they will be financially independent from parents between ages 18 and 25, yet their parents may not be financially independent from them in the coming years, as 18% of parents believe their kids will need to support them in retirement. 

Tools and Tips:

Three-quarters (75%) of kids say that an online game or mobile app would be helpful to learn the basics of saving and spending. To help kids understand basic money lessons and facilitating family financial conversations T. Rowe Price created MoneyConfidentKids.com. The site provides free online games for kids, lessons for educators and tips for parents focused around the financial concepts of goal setting, spending versus saving, inflation, asset allocation and diversification.

Additionally, T. Rowe Price has the following tips for parents to use when teaching their kids about money:

• Always begin by setting goals. Talking about saving for a summer vacation is a good place to start, but parents also need to explain the importance of setting long-term goals like saving for a car, college, or even retirement.
• Use everyday situations to spark the conversation. Interactions involving money, whether it’s using coupons at the grocery store, balancing a checkbook, or comparison shopping for a new television, are opportunities to teach kids valuable money lessons.
  
• Lead by example. The survey revealed that 95% of kids say they have learned the most about saving and spending money from their parents. When parents act as good financial role models, kids have a better chance of learning the right lessons.

Additional Survey Findings:

• Parents are pushovers when kids ask for more allowance: For the nearly half of parents who give their kids an allowance (47%), almost one-third of them (30%) say their kids come back and ask for more money after they spend it. Only 19% of parents say they are not a pushover and will hold firm in their decision to say no.
• Kids go to moms first with money questions, but not all moms feel they are a role model: When comparing parents as financial resources, 59% of kids say they go to their mom first with money questions. While more moms ranked discussions around savings and spending wisely as critically important (41%, compared with only 28% of dads), more than one-third of moms (36%) grade themselves with a C or below when it comes to being a good financial role model.
• Dads lead in family financial planning: More dads take the lead in family financial activities such as purchasing life insurance (53% versus 40% moms), saving regularly for their kids’ college education (46% versus 36% moms), and having an up-to-date will (31% versus 21% moms).
• Kids want to learn more about the stock market: The survey found that 29% of kids say they aren’t sure what the stock market is and 20% of kids are interested in learning about investing and how the stock market works. However, of the kids that say they know what the stock market is, 14% believe investing in the stock market is a way to get rich fast. While 22% of parents have bought or considered buying their kids a share in one stock to teach them about investing, kids may benefit more from learning about foundational investing concepts such as diversification, asset allocation, compound interest, and inflation.
• Kids are unsure about finance basics and want to learn more: While a majority of kids feel they understand how to set money goals (71%), fewer kids feel they have a good understanding of topics like inflation (28%), asset allocation (24%), and diversification (28%). However, kids are interested to learn more and want to talk about how banks and credit cards work (34%), inflation (27%), and diversification (20%).

Quotes

Stuart Ritter, CFP^®, senior financial planner at T. Rowe Price and father of three young kids

“Kids look to their parents as financial role models, and for that reason parents need to not only have frequent discussions with their kids about money, but also lead by example. Parents could do better on two fronts: They need to share financial concepts with their kids like goal setting and smart saving, as well as prepare their own finances for the long term.

“We found this year that more parents are saving for short-term goals such as vacation, than for long-term goals like college. Kids are also focused on short-term goals, with only 24% saying they are saving their own money for long-term goals. Parents need to focus more on long-term financial planning in order to prepare for a secure future for the whole family.”

About T. Rowe Price

Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (troweprice.com) is a global investment management organization with $576.8 billion in assets under management as of December 31, 2012. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

About the Survey

The fifth annual T. Rowe Price Parents, Kids & Money Survey, conducted by MarketTools, Inc., aimed to understand the basic financial knowledge, attitudes and behaviors of both parents of kids ages 8 to 14 and their kids ages 8 to 14. The survey was fielded from February 21, 2013 through February 27, 2013, with a sample size of 1,014 parents and 839 kids ages 8 to 14. The margin of error is +/- 5.0 percentage points. Full results can be found at media.moneyconfidentkids.com/resources.

MEDIA NOTE: Stuart Ritter and other T. Rowe Price financial planners are available to discuss the survey and provide parents with additional tips on how to approach the topic of financial literacy. 

Findings Show Parents Have an Easier Time Talking about Bullying, Drugs, and Smoking than Family Finances and Investing

BALTIMORE (March 22­­, 2012) – The 2012 Parents, Kids & Money Survey from T. Rowe Price, which surveyed parents, and for the first time, their kids, reveals that kids ages 8 to 14 want to know more about money matters, particularly about saving and how to make money.

Yet, while talking about money is generally encouraged, and 76% of parents are having money conversations with their kids at least somewhat often, survey findings indicate that parents are not doing enough to teach their kids basic financial lessons.

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The survey results, which are being released in recognition of Financial Literacy Month in April, also revealed that although kids give their parents a B+, parents were found to be lacking as financial role models. 

“Kids are eager to learn, and if we want to put them on the right financial path, parents need to be open and honest about money, demonstrate better financial behaviors and spend the time teaching basic financial lessons the way they do other skills,” says Stuart Ritter, CFP®, a T. Rowe Price senior financial planner and father of three. “While kids think their parents are good financial role models and do a good job teaching them about money, parental behavior suggests there’s a lot of room for improvement. Parents don’t need to be experts, but doing more to instill sound financial habits is crucial, especially given the uncertain financial future parents believe awaits their kids and if they don’t want their kids to have the same financial regrets they do.”

According to the survey, seventy-seven percent of parents say they are not always honest with their kids about money-related items, with 15% not telling the truth at least weekly. Most commonly, 43% of parents report not being honest about how worried they really are about money, 32% tell their children they can’t afford something when they really can, and 27% withhold information about the family’s true financial situation.

When it comes to financial discussions, the survey revealed that parents are more comfortable talking about bullying, drugs, and smoking than family finances or investing, and find talking about investing just as difficult as talking about puberty/coming of age. In addition, while most parents (82%) say they are at least fairly well prepared to discuss basic financial concepts such as setting goals, the importance of saving, spending smartly, inflation and diversification, they are not following through and teaching these lessons to their kids. Only half (51%) are teaching how to set a savings goal, only 46% are teaching about spending/savings trade-offs, and very few are teaching about inflation (19%), investing (16%), diversification (11%), and asset allocation (8%).

Parents also do not always set the best example when it comes to their own finances, with only half regularly setting aside money to save/invest, only 43% setting savings goals, and only 24% ensuring investments are diversified.

T. Rowe Price offers parents five tips for helping kids learn money basics and develop better financial habits:

1. Take advantage of everyday teachable money moments – Trips to the grocery store, attending a sporting event, getting money from the ATM, and planning family vacations are just a few examples of opportunities for parents to reinforce financial lessons.
2. Set a good example – In order to help their kids learn, parents should not only teach the core financial concepts but also demonstrate good financial habits through their own behaviors.
3. Help your kids set specific savings goals – With kids wanting to know how to save more, parents can help them set short- and long-term savings goals that provide an incentive to save, while also helping them make smarter spending decisions that leave more money available for saving.
4. Don’t be afraid to talk openly about finances – Although parents don’t have to reveal everything, openly discussing family finances will make it more likely that kids will learn and share financial lessons – and help them understand that the topic of money is not taboo.
5. Learn with your child – Fun activities where parents learn alongside their kids can be a welcomed shared experience, especially for topics such as inflation, diversification, and asset allocation that parents say they do not understand as well.

Facilitating family financial conversations and helping convey basic money lessons is one reason T. Rowe Price collaborated with Walt Disney Imagineering and Walt Disney Parks and Resorts Online to create The Great Piggy Bank Adventure®, which offers lessons on goal setting, spending vs. saving, inflation, and diversification. The Great Piggy Bank Adventure® comes to life through a free online board game at thegreatpiggybankadventure.com and through an interactive exhibit at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida.

T. Rowe Price also offers several resources for parents who want to further their financial education. The T. Rowe Price Family Center at familyfinancialhub.com helps parents explore fun ways to talk to kids about money and features real-life stories from parents about how they are taking the financial lessons they learned and are passing them on to their children at an early age. Parents can also download a free “Journey to Your Dream Goal” kids and money activity book they can use to teach financial concepts to their kids. In addition, a companion Family Center tab on the T. Rowe Price Facebook page (facebook.com/troweprice) launches the first week of April and will feature quizzes, teachable moment tips, and videos, and will enable parents to post their own money memories.

Additional survey findings include:

Parents Believe Life on Other Planets More Likely Than Kids Having a Secure Financial Future: More parents feel that it is likely that life exists on other planets (59%) than Social Security will be available in its current form when their kids retire (26%) or that their children will become millionaires (39%).

Family Finances a Taboo Subject: Nearly one-third (32%) of parents say they avoid talking with their kids about the family’s current financial situation.

Kids Say They Go to Moms First with Money Questions:  More than half (54%) of kids report they go to their moms first when they have a question about money, compared to 40% who go to their dads first.

Parents Don’t Always Agree on Money Matters – and Kids Know It: Nearly half (46%) of parents say they don’t always agree on money matters, and 42% of kids are aware of these disagreements.

Understanding of Investing Basics Lags – For Kids and Parents: When asked what gives money the best opportunity to grow over a long period of time, fewer than half of kids (48%) and parents (49%) chose stocks over bonds and a safe deposit box, with nearly a quarter (22%) of kids choosing the safe deposit box. Likewise, when asked the best way to diversify a wardrobe, only 59% of kids and 70% of parents correctly answered, “to buy clothing in several styles and colors.” A quarter of the kids and 23% of parents chose “donate the clothes you don’t wear,” while 16% of kids and 7% of parents answered “rearrange the clothes by size.”

Kids Grade Their Parents Higher as Role Models: Kids on average graded their parents a B+ as role models regarding saving and spending habits, with 44% giving them an A. Also, almost all kids (92%) think that their parents do a good job teaching them about money. Parents, however, graded themselves a B- on average, with only 17% giving an A and nearly one-third (31%) grading themselves a C or lower.

Parents Themselves Didn’t Get a Strong Financial Foundation Growing Up: Many parents (39%) report that their own parents did not do a good job teaching them about money.

Parents’ Financial Regrets Correspond to Core Financial Lessons: Knowing what they know now, parents say their biggest financial regrets are not saving enough (43%), spending too much/being in debt (32%), started saving too late (29%), wrong job/career choice (22%), and not setting financial goals (17%).

Kids Welcome Online Games as Teaching Tools:  Most kids (85%) think an online financial game would help them learn the basics about saving and spending.

The fourth annual T. Rowe Price Parents, Kids & Money Survey, conducted by MarketTools, Inc., aimed to understand the basic financial knowledge, attitudes and behaviors of both parents of children ages 8 to 14 and their children ages 8 to 14. The survey was fielded from February 17 through 24, 2012 with a sample size of 1,008 parents and 837 kids ages 8 to 14. The margin of error is +/- 5.0 percentage points.  Full results can be found under the Resources section at media.moneyconfidentkids.com.

MEDIA NOTE: Stuart Ritter and other T. Rowe Price financial planners are available to discuss the survey and provide parents with additional tips on how to approach the topic of financial education. T. Rowe Price has developed a clever info-graphic illustrating the statistics of parents and their honesty when it comes to money matters.  The info-graphic can be found at media.moneyconfidentkids.com.

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ-GS: TROW) is a global investment management organization with $489.5 billion in assets under management as of December 31, 2011. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at troweprice.com.

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T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

BALTIMORE (August 18, 2011) – The recent gyrations in stock prices and accompanying flood of news coverage provide parents with an excellent opportunity to discuss money matters with their children, says T. Rowe Price (NASDAQ-GS: TROW).

T. Rowe Price’s third annual Parents, Kids and Money survey released earlier this year shows that parents struggle when the topic of money comes up around the household. Just 28 percent of parents said they feel very prepared to discuss basic financial principles such as setting goals, the importance of saving, smart spending, inflation, and diversification.

Despite the challenging topic, 76 percent of parents think it is very important to have conversations with their kids about money, and 86 percent believe it is their responsibility to discuss money.

“Current events have always been a rich source of dinner-table discussions,” said Stuart Ritter, CFP®, a T. Rowe Price financial planner and father of three young kids. “In recent years, and especially this summer with the extreme volatility in stock prices, the economy and the markets have been front-page news, providing almost daily opportunities for parents and their children to discuss money topics.”

Ritter offers parents five tips on how to use the current financial news in the United States to talk to their kids about money:

1.) Watch for teachable moments. From the grocery store to the ATM and paying bills online, it’s important for parents to make sure their children know where money comes from and how purchases are made. Kids often see credit and debit cards and may not make the connection to where the money comes from. Be sure your kids are aware that even when using a credit card or debit card, you need to have money to cover your expenses.

2.) Triple digit market swings allow parents to share the importance of long-term investing. While the stock market’s short-term performance often garners a lot of headlines and attention, parents can reinforce with their kids that long-term investing is a marathon, not a sprint. If you have developed a sensible investment plan, demonstrate to your kids that sticking to it is important because over the long run stocks have historically proven to be among the best options for beating inflation. Past performance, however, cannot guarantee future results.

3.) Major ups and downs in the market also provide parents an opportunity to share the importance of diversification. Parents should discuss the importance of allocating investments among lots of different stock and lots of different bonds. Show how an investment in a mutual fund means you own a large number of different stocks – so if one part of the stock market is doing particularly poorly, you don’t have all your money in that sector. Of course, diversification cannot assure a profit or protect against loss in a declining market.

4.) Make it fun. Parents have many new tools to keep money discussions fun. T. Rowe Price recently introduced a free activity book, entitled “Journey to Your Dream Goal,” that uses puzzles, games, and tricky challenges to guide kids through the process of making smart financial decisions. The activity book serves as a companion to The Great Piggy Bank Adventure®, a free online board game at thegreatpiggybankadventure.com and a hands-on, interactive exhibit at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida. T. Rowe Price collaborated with Walt Disney Imagineering and Walt Disney Parks and Resorts Online to create The Great Piggy Bank Adventure® in order to facilitate family financial conversations and convey basic money lessons.

5.) The debt ceiling discussion at its core provides parents a chance to teach the important lesson of spending within their means. Parents should help children set a budget and remind them not to spend more than they have. There are exceptions to this rule including student loans and mortgages, but in general this is a life lesson that should be introduced to children early on.

All mutual funds are subject to market risk, including possible loss of principal.

Download a prospectus, which is available at www.troweprice.com or by calling 1-800-541-8803. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.

T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds.

Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) is a global investment management organization with $520.9 billion in assets under management as of June 30, 2011. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at troweprice.com.

T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

BALTIMORE (July 13, 2011) – As another fun way to teach kids basic money lessons, T. Rowe Price has introduced The Great Piggy Bank Adventure financial education activity book.  This free activity book, entitled “Journey to Your Dream Goal,” uses puzzles, games, and tricky challenges to guide kids through the process of making smart financial decisions. Along the way it helps kids become “finance smarty pants” by teaching them key lessons on the power of setting financial goals, the importance of saving and spending wisely, the effects of inflation, and the benefits of asset allocation and diversification.

The kids and money activity book is downloadable online at the T. Rowe Price Family Center website and is available at all T. Rowe Price Investor Centers. 

“The need for financial education has never been greater,” says Stuart Ritter, CFP®, a T. Rowe Price financial planner and father of three young kids. “The activities make important financial concepts accessible to kids at an early age and help make learning fun. By encouraging children to ask their parents questions about money matters, the book is also a great tool for helping families have smarter conversations about setting goals, making better saving and spending decisions, and other financial topics.”

Designed to be used independently, the kids and money activity book also serves as a companion to The Great Piggy Bank Adventure®, a free online board game at thegreatpiggybankadventure.com and a hands-on, interactive exhibit at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida. T. Rowe Price collaborated with Walt Disney Imagineering and Walt Disney Parks and Resorts Online to create The Great Piggy Bank Adventure® in order to facilitate family financial conversations and convey basic money lessons.

The need for fun financial education materials that can teach children while also serving as a resource for parents is supported by T. Rowe Price’s recent Parents, Kids and Money survey, which found that kids could develop better financial habits. Although family money conversations often lead to kids making good money choices, parents also report that more than a quarter of the time their children quickly forget the lessons. Likewise, while 92 percent of parents who give an allowance say they discuss how it should be handled, 43 percent of kids at least sometimes spend it all at once and 39 percent sometimes or always come back for more.

In addition, two-thirds of parents think they could be doing more to teach their children about money, while just 28 percent say they are very prepared to discuss basic financial principles such as setting goals, the importance of saving, smart spending, inflation, and diversification.

Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) is a global investment management organization with $509.9 billion in assets under management as of March 31, 2011. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at troweprice.com.

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Parents Find It Easier To Discuss Drugs and Alcohol Than Family Finances Two-Thirds of Parents Feel They Could Do More to Teach Their Children About Money

BALTIMORE (March 31, 2011) – The third annual Parents, Kids & Money Survey from T. Rowe Price reveals that

86 percent of parents feel they – more so than educators or others – should have primary responsibility for teaching their kids the basics of personal finance. Yet, parents on average only grade themselves a B- for serving as role models regarding their saving and spending habits, with more than one-third grading themselves a C or lower.

Similarly, parents on average grade themselves a B for their personal knowledge about money, with more than one-quarter grading themselves a C or lower. Just 28 percent of parents say they are very prepared to discuss basic financial principles such as setting goals, the importance of saving, smart spending, inflation, and diversification. Parents actually find it easier to discuss drugs and alcohol with their kids than family finances. They also find talking about investing just as difficult as talking about puberty/coming of age.

In addition, two-thirds of parents think they could be doing more to teach their children about money. The survey results are released in recognition of Financial Literacy Month, which occurs in April.

“The need for financial education has never been greater,” says Stuart Ritter, CFP®, a T. Rowe Price financial planner and father of three. “There are opportunities each and every day to share important lessons with children, and with kids able to grasp many of these important financial concepts at a young age, these conversations can start as early as elementary school, if not sooner. Parents don’t need to be experts, but they should be able to share the basic tenets that will put their children on the right financial path.”

Mr. Ritter offers parents five tips for discussing family finances with their kids:

1. Take advantage of everyday teachable moments – such as going grocery shopping, opening the household bills or planning a family vacation – to reinforce financial lessons and make them more memorable.
2. Help your kids set specific savings goals – both short- and long-term – to provide real-life incentives and make the general advice to “save” more concrete. This will also better equip them to make smarter spending decisions.
3. Emphasize prioritization and focus on tying spending decisions back to the goals when your kids want something else. This can be a better approach than simply saying “no” and helps put the decisions in a context they will understand while making it easier to discuss the trade-offs.
4. Have open communications about the financial choices the family has to make and be careful about how you react to money issues. While you don’t need to reveal all financial details such as exact household income, it’s important to let kids know that the topic of money is not taboo and is open for discussion.
5. Make money conversations fun – which will better engage your kids and avoid the eye rolls that tend to accompany these types of discussions.

Facilitating family financial conversations and helping convey basic money lessons is one reason T. Rowe Price collaborated with Walt Disney Imagineering and Walt Disney Parks and Resorts Online to create The Great Piggy Bank Adventure®, which offers lessons on goal setting, spending vs. saving, inflation, and diversification. The Great Piggy Bank Adventure® comes to life through a free online board game at thegreatpiggybankadventure.com and through a hands-on, interactive exhibit at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida.

Additional survey findings include:

Parents May Not be Practicing What They Preach: With parents grading themselves higher for their money knowledge than in being good financial role models, there’s room for improvement in making sure their behavior aligns with what they say to their kids. In addition, parents say that 20 percent of the time their children remind them of the money lessons they had discussed.

Conversations are Important and They’re Happening More Frequently: 76 percent of parents say having conversations with their children about money and saving is very important, and half say they are having more such conversations than a year ago.

Moms Get Money Questions First, Although Dads Say They are More Knowledgeable: 61 percent of parents report that their children typically go to mom first with money questions. Yet, only 17 percent of moms grade themselves an A on their financial knowledge compared to 28 percent of dads.

Parents Agree Conversations Should Start Early: 77 percent of parents think discussions about the importance of saving and spending should start before age 10.

Kids Have Room to Grow in Their Financial Habits: Although family money conversations often lead to kids making good money choices, parents also report that more than a quarter of the time their children quickly forget the lessons. Likewise, while 92 percent of parents who give an allowance say they discuss how it should be handled, 43 percent of kids at least sometimes spend it all at once and 39 percent sometimes or always come back for more.

Missed Teachable Moment Opportunities: Although parents often take advantage of teachable moments during family activities such as shopping at a store or when their kids receive money as a gift, they tend to miss opportunities to have these conversations when shopping online, paying bills, or visiting the bank or ATM.

Online Resources Would Support Parents’ Education Efforts: Outside of their own life experiences, parents say the resources they would find most useful in teaching their children about personal finance would be free online educational games and websites with tips and advice.

Understanding of Inflation and Diversification Lags: While parents say they and their kids have at least a fairly good understanding of how to set goals and the importance of saving, they also report that they – and particularly their kids – are a lot less knowledgeable about inflation, asset allocation, and diversification, the understanding of which are key to successful investing.

To further parents’ financial education, T. Rowe Price also hosts a Family Center section on the firm’s website. The

T. Rowe Price Family Center (troweprice.com/trowefamilycenter) features real-life stories from parents about how they are taking the financial lessons they learned and are passing them on to their children at an early age.

The third annual T. Rowe Price Parents, Kids & Money Survey was conducted online by MarketTools, Inc. among moms and dads of children ages 8 to 14, capturing parents’ attitudes and behaviors toward teaching their children about money. The study has a sample size of 1008 and the margin of error is +/- 5.0 percentage points. The study was fielded February 20 through March 7, 2011. Full results can be found by clicking here.

MEDIA NOTE: Stuart Ritter is available to discuss the survey and provide parents with additional tips on how to approach the topic of financial education.

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ-GS: TROW) is a global investment management organization with $482 billion in assets under management as of December 31, 2010. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools.

T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at troweprice.com.

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T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

BALTIMORE (April 27, 2010) – According to the second annual T. Rowe Price Parents, Kids & Money Survey, 65 percent of kids are approaching their parents to discuss money issues. In addition, 48 percent of parents indicate that compared to a year ago they are having more conversations with their children about money and the basics of saving vs. spending, while only five percent are having fewer such conversations. However, the survey also reveals that these conversations may not be resonating as well as parents hoped.

For example, while 94 percent of parents who give an allowance to their children say they discuss how it should be handled, a majority of kids sometimes spend it all at once and 39 percent always or sometimes come back for more. Similarly, while 80 percent of parents say they are having conversations with their children about money at least once every few weeks, they also report that fewer than half of their kids use the lessons on a regular basis, and nearly 60 percent quickly forget the lessons or need periodic reminding.

“The need for financial education has never been greater,” says Stuart Ritter, CFP®, a T. Rowe Price financial planner. “So, while we’re pleased to see family money conversations happening more often, unfortunately we’ve learned that greater frequency of conversations may not always equate to quality of conversations. It is important for parents to take stock of the financial lessons they are passing on and take steps to improve their own financial education and well-being.”

Facilitating family financial conversations and helping convey basic money lessons is one reason T. Rowe Price collaborated with Walt Disney Imagineering and Walt Disney Parks and Resorts Online to create The Great Piggy Bank Adventure®, which offers lessons on goal setting, spending vs. saving, inflation, and diversification. Launched in 2009, The Great Piggy Bank Adventure® comes to life through a free online board game at www.thegreatpiggybankadventure.com and through a hands-on, interactive experience at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida.

“Improving your child’s financial understanding can also be as easy as using a trip to the grocery store as a teachable moment,” Ritter says. “Using everyday examples helps to reinforce money lessons and makes these lessons more memorable. In fact, there is a growing consensus that kids are not only able to understand basic concepts about money much sooner than many parents believe, but that starting to teach kids about money at a younger age will better prepare them to make smart financial decisions throughout their lives. Fortunately, parents agree with the importance of starting early, with eight out of 10 parents surveyed believing that money lessons should be introduced before age 10.”

Other survey findings include:

• Parents Grade Themselves ‘B-’ on Financial Report Card: Fewer than 20 percent of parents grade themselves an “A” when it comes to their overall understanding of basic saving and investing principles. On average, parents grade themselves a “B-,” with one in three giving themselves a “C” or lower. While parents tend to have a better understanding of setting goals, how to save, and smart spending, they are less knowledgeable about the topics of inflation and diversification.
• Moms Are More Proactive Educators: For 60 percent of families, one spouse is more proactive in discussing money and the basics of saving and spending with the children. In those households, 59 percent of the time it is the Mom who is more proactive in taking on the role of financial educator.
• Parents Feel They Can do More: Although financial discussions are happening more often, there’s still room for improvement as 54 percent of parents say they could be doing more to teach their children about money. Likewise, more than one-third of parents do not believe they are doing all they can to empower their children to make sound financial decisions by the time they are 18.

With the survey results in mind, following are a few family financial education tips from T. Rowe Price:

• Help Your Kids Set Savings Goals – Although goal setting is a critical first step in financial planning, it is often overlooked. Help your kids set short- and long-term goals (e.g. video game, new bike, college), and they will be better equipped to make smart saving and spending decisions.
  • Survey Says: 43 percent of children don’t have a really good understanding of how to set goals.
• Take Advantage of Teachable Moments – Regular occurrences such as grocery and clothes shopping, receiving money as gifts, banking and paying bills, and giving an allowance can become real-life “teachable moments.” These are ideal times to impart or reinforce core financial lessons around setting goals, saving and spending wisely, inflation, and diversification.
  • Survey Says: Most parents acknowledge that they do not always leverage these occasions.
• Hold a Dedicated Family Financial Game Night – Turn financial education into a fun and interactive family activity by playing The Great Piggy Bank Adventure® online game together. With financial lessons embedded into the game play, kids will learn without realizing it. And, with the common experience of playing the game together, parents can easily refer back to it to help them turn everyday activities into teachable moments.
  • Survey Says: While more than half of families have regular game nights where they play board or video games, dedicated financial nights are not the norm, with 70 percent of parents saying they rarely or never have them. Of those, the primary reason (44 percent) is they never thought of it.

To further parents’ financial education, T. Rowe Price also hosts a Family Center section on the firm’s website. The T. Rowe Price Family Center (www.troweprice.com/trowefamilycenter) features real-life stories from parents about how they are taking the financial lessons they learned and are passing them on to their children at an early age. The site also serves as a gateway to The Great Piggy Bank Adventure® online board game and links to T. Rowe Price financial tools, calculators, and investment information.

The Second Annual T. Rowe Price Parents, Kids & Money Survey was conducted online by MarketTools, Inc. among Moms and Dads of children ages 8 to 14, capturing parents’ attitudes and behaviors toward teaching their children about money. The study has a sample size of 505 and the margin of error is +/- 5.0%. The study was fielded March 15 to March 19, 2010. Full survey statistics are available.

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ: TROW) is a global investment management organization with $419.0 billion in assets under management as of March 31, 2010. The organization provides a broad array of mutual funds, sub advisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.

T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

BALTIMORE (July 21, 2009) – School is out and parents’ report cards are in…According to the T. Rowe Price Parents, Kids & Money Survey, parents on average grade themselves a B- when it comes to their total understanding of basic saving and investing concepts such as setting goals, the importance of saving, spending smartly, inflation, and diversification. The study of 504 moms and dads nationwide also revealed that 60 percent of parents feel that financial discussions do not happen nearly enough, and more than half are worried they could be doing more to prepare their children to be financially competent by the time they turn 18.

The survey coincides with the recent launch of The Great Piggy Bank Adventure®, two interactive financial education and entertainment experiences created by T. Rowe Price in collaboration with Walt Disney Imagineering and Walt Disney Parks and Resorts Online. The Great Piggy Bank Adventure®, which offers lessons on goal-setting, saving and spending wisely, staying ahead of inflation, and diversifying your assets, comes to life through an online board game at www.thegreatpiggybankadventure.com and through a hands-on, interactive experience at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida.

“The survey confirms that parents want to impart sound financial values to their children, but they do not always have the tools or feel knowledgeable enough to teach them,” said Stuart Ritter, CFP®, a financial planner with T. Rowe Price. “We have a long history at T. Rowe Price of educating investors, and The Great Piggy Bank Adventure® enables us to educate families on core financial principles while also providing parents with teachable moments that will empower them to talk to their kids about the basics of personal finance and involve them more in family financial matters.”

Although the current economic conditions have served as a catalyst to encourage nearly half of parents to have more conversations with their kids about money, the survey revealed that more than half of parents feel they have to periodically reinforce money lessons because their kids quickly forget them.

Regular occurrences such as giving an allowance, shopping together, getting birthday money, or balancing a checkbook are ideal times to impart basic financial lessons, especially around setting goals and spending wisely, Ritter says. However, according to the survey, most parents do not always leverage these occasions. Nearly half of parents neglect to utilize receiving money as a gift as a teachable moment and the majority do not always capitalize on shopping or grocery store trips as opportunities to have a conversation about money and finances. In addition, 41% of parents who give their children an allowance report that they always or sometimes come back for more money after it runs out.

Other survey findings include:

• Piggy Banks Help Teach Kids About Money — 85% of parents report that their child has a piggy bank, and nearly all say that having one sets a good example about the importance of saving. A majority of parents say the decision to take money out is shared, while nearly a third say the decision rests with the child alone.
• Financial Conversations are a Shared Responsibility — More than two-thirds of parents say that speaking to children about money is a shared responsibility. However, when one parent is solely responsible, the task falls to Mom nearly two-thirds of the time.

To further parents’ financial education and empowerment, T. Rowe Price has also created a new Family Center section of the firm’s website. The T. Rowe Price Family Center features real-life stories from parents about how they are taking the financial lessons they learned at an early age and are passing them on to their children. Available at www.troweprice.com/trowefamilycenter, the site also serves as a gateway to The Great Piggy Bank Adventure® online board game and links to T. Rowe Price financial tools, calculators, and investment information.

The T. Rowe Price Parents, Kids & Money Survey was conducted online by MarketTools, Inc. among parents of children ages 8 to 14, capturing parents’ attitudes and behaviors toward teaching their children about money. The study has a sample size of 504 and the margin of error is +/- 4.4%. The study was fielded April 17 to 21, 2009. Full survey statistics are available.

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ: TROW) is a global investment management organization with $268.8 billion in assets under management as of March 31, 2009. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.

INNOVENTIONS is located in the heart of Epcot® at the Walt Disney World® Resort in Lake Buena Vista, Florida. Creativity and imagination abound as guests celebrate inspiration and the innovations that improve their lives and expand their horizons. Hands-on, interactive exhibits allow children and adults to be immersed into ideas that inform, entertain and inspire – conquer the most dangerous house in America, find solutions to “sticky” problems, experience the most cutting edge products at the “House of the Future,” protect the environment from the daily waste we create and push the limits of everyday products as we make the world a safer place. For more information on INNOVENTIONS, visit www.innoventions.disney.com or contact Stacia Wake at Stacia.l.wake@disney.com.

T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

BALTIMORE (May 19, 2009) – T. Rowe Price, in collaboration with Walt Disney Imagineering and Walt Disney Parks and Resorts Online, today launched The Great Piggy Bank Adventure® —two interactive financial education and entertainment experiences that offer lessons on the key financial themes of setting goals, saving and spending smartly, staying ahead of inflation, and diversifying your assets. The Great Piggy Bank Adventure® comes to life through a hands-on, interactive experience at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida, and through an online virtual board game at www.thegreatpiggybankadventure.com.

The Great Piggy Bank Adventure® premieres at a time when families are engaging in conversations about the importance of saving and investing and how to manage money responsibly. By embedding educational messages into fun, entertaining experiences, The Great Piggy Bank Adventure® makes basic saving and investing concepts more accessible to children and adults alike. The experiences will also empower parents to start or continue the conversations while providing them with “teachable moments” they can use to impart sound financial values and habits to their kids.

T. Rowe Price recently conducted a survey among parents with children ages eight to fourteen and nearly half indicated that because of the current economic conditions they are having more conversations with their kids about money. The survey also showed that parents are worried that they could be doing more to prepare their children to be financially literate, and feel that financial discussions do not happen enough.

“Among the most fundamental lessons of the current financial environment are the importance of saving and getting back to basics,” said Edward C. Bernard, vice chairman of T. Rowe Price Group. “T. Rowe Price has a long history of educating investors and helping them reach their financial goals. Through this unique collaboration, we’re excited to bring core financial principles to life in an immersive and interactive way that goes beyond mere education. The Great Piggy Bank Adventure® will give parents greater confidence to discuss these personal finance concepts with their children.”

At the INNOVENTIONS at Epcot® experience, family members work together as they play a series of entertaining, hands-on games that illustrate and convey the financial lessons. After choosing a dream goal, players go through three different interactive activity stations where they direct coins into savings and away from spending buckets via a touch screen, move levers to ride the currents and capture falling coins before they’ve been reduced in value by the evil wolf and his sinister inflation machine, and spread their coins around hiding places as they try to avoid the wolf and learn the value of diversification. Along the way, players are guided by a talking piggy bank who offers guidance and education to reinforce the lessons and help them collect enough coins to reach their goal.

The Great Piggy Bank Adventure® online game is a stand-alone experience that explores the saving and investing themes in more depth and can extend the learning for those who have visited the INNOVENTIONS exhibit. Designed to be played in either a single or multi-player format, the online game takes players on a journey through a mythical 3-D world while enabling them to learn the financial lessons along the way. As players advance through the game’s three levels and attempt to reach their dream goals, the financial decisions become more complex. “Finance Smarty Pants” trivia cards, “Financial Fortunes” spaces, “Choose or Lose” dilemmas, and interactive “mini-games” that follow each level emphasize the lessons and provide more opportunities to earn the Truffles that serve as the game’s currency. The game also features a virtual piggy bank which serves as a Personal Investment Guide (P.I.G.), offering game strategies and additional education on the financial concepts.

“As a parent and financial planner, it’s been rewarding to see how engaged families and kids become as they go through the experiences, and to see parents begin to talk with their children about the financial concepts even while they’re still playing,” said Stuart Ritter, CFP®, a financial planner with T. Rowe Price. “The Great Piggy Bank Adventure® lessons can last a lifetime, and having them instilled at an early age will give parents greater comfort that they will eventually be able to send their children into the world with a more solid financial foundation.”

To further parents’ financial education and empowerment, T. Rowe Price has also created a Family Center microsite as a new section of the firm’s website. The T. Rowe Price Family Center features real-life stories from parents about how they are taking the financial lessons they learned at an early age and are passing them on to their children. Available at www.troweprice.com/adventure, the site will also serve as a gateway to The Great Piggy Bank Adventure® experiences and will link to T. Rowe Price financial tools, calculators, and investment information.

Dan Cockerell, Vice President of Epcot®, shared his excitement about working with T. Rowe Price to create this unique experience. “At INNOVENTIONS, our focus is on encouraging guests to imagine, invent, inquire and inspire while exploring amazing innovations that make our lives better. The Great Piggy Bank Adventure® will give our visitors a better insight into what it means to save and invest in an innovative and engaging manner.”

Jeff Voris, Director of Advanced Projects at Walt Disney Parks & Resorts Online was excited and challenged by the opportunity to create an online experience of The Great Piggy Bank Adventure®. “From the beginning we knew that these lessons were important enough that we had to extend the INNOVENTIONS experience to guests at home. Our goal was not just to create a great, fun online game for kids and their families, but also to do our best to help motivate conversations within families about the importance of setting goals and financial planning. That’s a fairly tall order. When I heard a nine year old talk about how cool the game was and then turn to his little sister and explain to her the importance of diversification I felt confident we had done pretty well in both areas.”

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ: TROW) is a global investment management organization with $268.8 billion in assets under management as of March 31, 2009. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.

INNOVENTIONS is located in the heart of Epcot® at the Walt Disney World® Resort in Lake Buena Vista, Florida. Creativity and imagination abound as guests celebrate inspiration and the innovations that improve their lives and expand their horizons. Hands-on, interactive exhibits allow children and adults to be immersed into ideas that inform, entertain and inspire – conquer the most dangerous house in America, find solutions to “sticky” problems, experience the most cutting edge products at the “House of the Future,” protect the environment from the daily waste we create and push the limits of everyday products as we make the world a safer place. For more information on INNOVENTIONS, visit www.innoventions.disney.com or contact Stacia Wake at Stacia.l.wake@disney.com.

[1] An online study was conducted by MarketTools, Inc. among parents of children ages 8 to 14, capturing parents’ attitudes and behaviors toward teaching their children about money. The study has a sample size of 504 and the margin of error is +/- 4.4%. The study was fielded April 17 to 21, 2009.

BALTIMORE (March 16, 2009) – T. Rowe Price, the global investment management organization, today announced that it has signed a sponsorship agreement to create an innovative financial education and entertainment experience at Epcot®. Designed in collaboration with Walt Disney Imagineering, The Great Piggy Bank Adventure® is scheduled to open this spring at INNOVENTIONS at Epcot® at the Walt Disney World® Resort in Florida. This interactive exhibit will bring basic saving and investing concepts to life in a fun and captivating way. The experience will entertain and empower families, while encouraging them to engage in regular dialogue about the importance of saving and how to manage money responsibly.

The first-of-its-kind exhibit, in conjunction with a companion online game and associated web site, broadens T. Rowe Price’s longstanding investor education initiatives. The Great Piggy Bank Adventure® will offer lessons on four key financial themes: setting goals, saving and spending smartly, staying ahead of inflation, and diversifying your investments. Discussions began over three years ago with Epcot® Business Development and Walt Disney Imagineering to bring this experience to guests visiting INNOVENTIONS.

“Empowering parents to initiate discussion of the topics of saving and investing with their children is more important than ever before,” said Edward C. Bernard, vice chairman of T. Rowe Price Group. “Financial awareness and decisionmaking is heavily influenced by one’s early experiences, making vibrant family discussion a powerful and lifelong educational influence that can help children develop sound financial values and habits. In watching families during play-testing of the exhibit, it has been rewarding to see how The Great Piggy Bank Adventure® engages families in a unique way and really does get the conversation started.

“T. Rowe Price has a long history of educating investors and helping people reach their financial goals,” Mr. Bernard added. “We can’t think of a better way to expand those efforts than by collaborating with an organization that is a true innovator in turning the ordinary into the extraordinary and whose name is synonymous with world-class family education, entertainment, and service excellence.”

Dan Cockerell, Vice President of Epcot®, shared his excitement about working with T. Rowe Price to create this unique experience. “At INNOVENTIONS, our focus is on encouraging guests to imagine, invent, inquire and inspire while exploring amazing innovations that make our lives better. The Great Piggy Bank Adventure® will give our visitors a better insight into what it means to save and invest in an innovative and engaging manner.”

Founded in 1937, Baltimore-based T. Rowe Price (NASDAQ: TROW) is a global investment management organization with $276.3 billion in assets under management as of December 31, 2008. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.

INNOVENTIONS is located in the heart of Epcot® at the Walt Disney World® Resort in Lake Buena Vista, Florida. Creativity and imagination abound as guests celebrate inspiration and the innovations that improve their lives and expand their horizons. Hands-on, interactive exhibits allow children and adults to be immersed into ideas that inform, entertain and inspire – conquer the most dangerous house in America, find solutions to “sticky” problems, experience the most cutting edge products at the “House of the Future,” protect the environment from the daily waste we create and push the limits of everyday products as we make the world a safer place. For more information on INNOVENTIONS, www.innoventions.disney.com or contact Stacia Wake at Stacia.l.wake@disney.com.