COLORADO SPRINGS, Colo., May 16, 2017 /PRNewswire/ -- While 76 percent of teens ages 15-17 are confident they fully understand the financial responsibilities of owning a car, 85 percent of parents with 15-17-year-old teenagers disagree. This discord may lie in the fact that 86 percent of teens feel that parents should help them with automobile expenses such as insurance, repairs and gas, while 91 percent of parents believe assistance is unreasonable.
This new independent research conducted for Junior Achievement (JA) and American Honda Finance Corporation (AHFC), included separate surveys of teens and their parents, the results of which divulged that nearly one-fourth of teens expects a car with their cap and gown this graduation season. At the same time, 61 percent of parents expect their teen to complain about the financial upkeep of a car within 30 days of getting their vehicle.
"When it comes to newly licensed drivers, in addition to important discussions about distractions and curfews, parents should rev up the car talk about the financial aspects of car ownership," said Jack E. Kosakowski, president and chief executive officer of Junior Achievement USA. "It's a great way to prepare them for future financial security both on and off the road."
Interestingly, 61 percent of parents say that a car is a more effective means of teaching kids financial responsibility than a credit card. To that end, 96 percent of parents say they would only help their teen buy a car if they first demonstrated responsibility, such as by preparing a budget to pay for expected and unexpected expenses, having a certain amount of money saved or explaining what is required to buy a car.
"When parents walk their young adult drivers through the smart steps of buying and maintaining a car, it becomes an opportune time to introduce key financial concepts that will last a lifetime, from the importance of budgeting, to negotiating and maintaining healthy credit," said personal finance expert Farnoosh Torabi, who provides 10 tips for financially-sound teen drivers.
A third JA-AHFC survey conducted among young adults ages 18-25 may reveal the truth about teens' financial understanding. According to this more mature cohort, looking in the rearview mirror, 73 percent admit they did not understand the financial responsibilities of owning a car when they were in high school. And, with age, comes wisdom. Ninety-three percent of these young adults are confident that they fully understand the financial responsibilities of owning a car, and they turn to a wide variety of sources for information when considering purchasing a vehicle, including financial institutions, car dealers, online forums, magazines and social media.
Junior Achievement and AHFC created the Financial Test Drive, an online quiz to help determine a young driver's financial road readiness. AHFC also has joined with JA on the development of The JA Personal Finance® program, a comprehensive financial literacy program aimed at helping teens better understand financial concepts such as earning money; spending money wisely through budgeting; saving and investing money; using credit cautiously; and protecting their personal finances.
"Vehicle ownership is often a teen's first real-world experience managing their own money," said David Paul, senior vice president, American Honda Finance Corporation. "The important lessons learned at this stage in their lives will help them manage their responsibilities today, as well as help them succeed in their future financial obligations and aspirations in life."
The Junior Achievement Surveys were conducted by Wakefield Research (www.wakefieldresearch.com) among 500 teen Americans ages 15-17, 500 young adult Americans ages 18-25, and 500 Americans with teen children ages 15 -17, between February 8th and February 21st, 2017, using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points in each audience from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
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 more than 4.8 million students per year in 109 markets across the United States, with an additional 5.6 million students served by operations in 100 other countries worldwide. Junior Achievement USA is a member of JA Worldwide. Visit www.ja.org for more information.
About American Honda Finance Corporation
American Honda Finance Corporation (AHFC), operating as Honda Financial ServicesSM and Acura Financial Services®, helps to satisfy the financing needs of consumers of Honda and Acura products including automobiles, sport utility vehicles, minivans, motorcycles, powersports products, marine engines and power equipment. For more information visit http://www.hondafinancialservices.com or www.acurafinancialservices.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-generation-gap-on-auto-ownership-is-as-wide-as-a-highway-76-percent-of-teens-say-theyre-ready-for-a-car-85-percent-of-parents-disagree-300457974.html
SOURCE Junior Achievement USA