Percentage Of Teens Who Think They Will Be Financially Dependent On Parents Until Age 25-27 More Than Doubles, New Survey Finds
Junior Achievement USA® and The Allstate Foundation survey indicates teens are more optimistic about financial futures, yet concerned about paying for higher education
HOUSTON, March 27, 2013 /PRNewswire-USNewswire/ -- Junior Achievement USA® (JA) and The Allstate Foundation's 2013 Teens and Personal Finance Poll shows that teenagers are more optimistic about their financial futures, with a 20 percent increase in teens believing they will be financially better off than their parents. However, part of their financial security comes from depending on parents until a later age.
The survey found that 25 percent of teens think they will be age 25-27 before becoming financially independent from their parents, up from 12 percent in 2011. Concurrently, parents are also expecting their children to be in their mid-20s by the time they are financially independent(1), as the economy, availability of jobs and societal norms now indicate a longer dependence on parents.
In a similar survey conducted among Houston area teens from January 23 through March 19, 2013, 18% of teens said they will be age 25 or older before becoming financially independent from their parents.
"It is interesting to see this shift in teens thinking they will remain financially dependent on parents, while building a better future for themselves," said Rick Franke, Junior Achievement of Southeast Texas President. "From our findings, we can infer that teens expect to live with their parents longer because 27 percent are unsure about their ability to budget and 48 percent express similar feelings about the use of credit cards. Additionally, 40 percent of teens express a lack of confidence in their ability to invest their money. The good news is that resources are available, but now is the time to implement steps to help today's teens secure independent financial futures."
Since 2005, Junior Achievement and The Allstate Foundation have partnered to help students take the valuable information learned about personal finance in the classroom and apply it in their lives after graduation. The Junior Achievement JA Economics for Success® program, created in partnership with The Allstate Foundation, has helped more than 1.2 million students across the country set personal goals about money and make wise financial choices. The program also helps empower students to develop, plan, and set goals to help protect them from unexpected financial pitfalls.
Junior Achievement of Southeast Texas is proud to offer financial literacy education through JA's programs to over 245,000 students in the Houston area during the 2012-2013 school year. This reach is with the help of 11,000 local volunteers.
"Parents continue to be the No.1 influence on teens when it comes to money, so helping their teens set financial goals and take steps to meet them should pay off financially for both teens and their parents," said Don Civgin, president and chief executive officer, Allstate Financial. "One goal many teens have is to go to college, yet nearly 30 percent of U.S. teens say they haven't discussed paying for higher education with their parents and only nine percent admit to saving for college. There is a tremendous opportunity for family conversation on this topic."
Other key findings from the survey include:
- Nationally, of the 33 percent of teens who say they do not use a budget, 42 percent are "not interested" and more than a quarter (26 percent) think "budgets are for adults." In Houston, 19% of teens say they are not interested in budgeting and 6% believe that "budgets are for adults."
- More than half of U.S. teens (52 percent) think students are borrowing too much to pay for college, yet only nine percent report they are currently saving money for college. Nearly 30 percent have not talked with their parents about paying for higher education. This compares to 39% and 4% in Houston, respectively.
- The majority of U.S. teens (76 percent) still report the best time to learn about money management is in kindergarten through high school, but only 29 percent reported programs currently in place. In Houston, 66 percent of teens say that kindergarten through high school is the best time to learn money management, and 37% say they have money-management programs in school.
The national study was conducted Feb. 5-15, 2013, using the KnowledgePanel to interview 1,025 teens ages 14-18 years old. The survey's margin of error is +/- 3 percent at the 95 percent confidence level.
The local survey was conducted online from January 23 through March 19, 2013.
About Junior Achievement of Southeast Texas
Junior Achievement of Southeast Texas is the greater Houston area's largest organization dedicated to inspiring and preparing young people to succeed in a global economy. Through a dedicated volunteer network of 12,000 adult role models, JA of Southeast Texas provides in-school and after-school programs for students in grades K-12 which focus on entrepreneurship, work readiness and financial literacy. Today, JA of Southeast Texas reaches 245,000 students in more than 900 schools. For more information, visit www.jahouston.org.
About Junior Achievement USA® (JA)
Junior Achievement is the world's largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for their future, and make smart academic and economic choices. JA programs are delivered by corporate and community volunteers, and provide relevant, hands-on experiences that give students from kindergarten through high school knowledge and skills in financial literacy, work readiness and entrepreneurship. Today, JA reaches 4.2 million students per year in more than 120 markets across the United States, with an additional 5.8 million students served by operations in 120 other countries worldwide. Visit www.ja.org for more information.
About The Allstate Foundation
Established in 1952, The Allstate Foundation is an independent, charitable organization made possible by subsidiaries of The Allstate Corporation. Through partnerships with nonprofit organizations across the country, The Allstate Foundation brings the relationships, reputation and resources of Allstate to support innovative and lasting solutions that enhance people's well-being and prosperity. With a focus on teen safe driving and building financial independence for domestic violence survivors, The Allstate Foundation also promotes safe and vital communities; tolerance, inclusion, and diversity; and economic empowerment. For more information, visit www.allstatefoundation.org.
(1) "Young, Underemployed and Optimistic," Pew Research Center, Feb. 9, 2012, http://www.pewsocialtrends.org/2012/02/09/young-underemployed-and-optimistic/4/#chapter-3-how-todays-economy-is-affecting-young-adults?src=prc-number, March 13, 2013.
SOURCE Junior Achievement of Southeast Texas