Bank of America Merrill Lynch surveyed more than 2,500 respondents in the US, shedding light on how they regard the financial interests of children.

A large majority of US parents (72 per cent) put their children’s interests ahead of their own need to save for retirement and 63 per cent of parents have sacrificed their financial security to help their offspring, a survey that sheds light on inter-generational wealth issues says.

The Bank of America Merrill Lynch survey covers more than 2,500 respondents in the US, who are aged more than 18 and who are parents - either biological, adopted or step - to children of any age, including those under and over 18.

The study found that the biggest financial sacrifice parents would make for their children was to pull money from their savings account (50 per cent), which was followed by live a less comfortable lifestyle (43 per cent), take on debt (26 per cent) and pull money from a retirement account (25 per cent) in the top four.

With an expected $30 trillion of assets expected to be shifted from aging Baby Boomers to the next generation, the wealth management industry is urged to tackle how the upcoming generation understands and engages with inherited wealth. As the BoA report may suggest, even parents who are some way off from retirement put the transfer of future wealth high up their list of priorities. Some may not see their own present interests as at odds with those of children in the first place.

Despite the common perceptions that it costs parents more when children are younger, more parents said that when their children are adults (45 per cent) is the most expensive phase of parenting. This was followed by elementary/high school (44 per cent) and infant toddler (11 per cent) phases. The report also found the investment changes spurred on by parenting. Invested more (34 per cent) was top, followed by greater risk tolerance (23 per cent) and hiring a financial advisor (17 per cent).

Lastly, the survey looked into how much parents educated teen children about financial matters. Pay off debt early (68 per cent) was the most taught financial need, then establish and maintain good credit (63 per cent), followed by invest early and benefit from compounding (59 per cent) and create and maintain a budget (58 per cent).

Some 72 per cent said they wished that they had some help teaching their children about investing, and 90 per cent agreed that personal finances should be taught in school.