Financial Literacy Month

Only Half of Teens Say Gaining Financial Independence from Parents is a Goal for the Future

Understanding Teens’ Concerns about Money and Plans for the Future

COLORADO SPRINGS, Colo., April 4, 2018 /PRNewswire/ — A new survey by Junior Achievement USA and AIG finds that only half of teens cite becoming financially independent of parents as one of their future goals. The 2018 JA Teens & Personal Finance Survey offers insight into how this generation is thinking about and planning for their financial future while emphasizing the value of financial literacy and personal finance programs.

“Millennials have sometimes been referred to as ‘the Boomerang Generation’ because during the economic recovery many moved back home with their parents after college due to a weak job market and student loan debt,” said Jack Kosakowski, President and CEO of Junior Achievement USA. “This survey may be showing that today’s teens, Generation Z, could be seeing that as a situation they will encounter down the road.”

Among the survey results, teens stated their financial goals for the future include: graduating from college (75%), creating a savings plan (50%), affording international travel (37%), starting my own business (30%), and retiring before age 65 (29%).

Teens were also asked to share their concerns for the future. Top concerns were: being able to pay for college (54%), finding a fulfilling and well-paying job (52%), not being able to afford their own home (49%), not having skills to manage money (42%), and not having savings for an emergency (41%). Girls who took the survey tended to have higher levels of concern than did the boys.

They think a lot about their financial futures

“It’s apparent from these findings that today’s youth think a lot about their financial futures, and are looking for ways to be better prepared to be successful at managing money,” said Laura Gallagher, Global Head of Corporate Citizenship at AIG. “One way AIG is helping on this front is by partnering with organizations like Junior Achievement to get young people the information they need to be more prepared and to feel more confident about their futures.”

According to the survey, 95 percent of teens would value personal finance programs being taught in their schools. Currently, most teens get their financial advice from their parents or guardians (72%), followed by online resources including social media (33%), family members other than parents or grandparents (31%), and friends (28%). Only 18 percent currently seek out this information from their high school guidance counselor and 14 percent from a professional financial advisor.

Excerpts from the ‘Teens and Personal Finance Survey’

Seeking Financial Advice
Ninety-one percent of teens say they have sought financial advice. Most teens go to their parents or guardians (72%). This is followed by online resources, such as social media and YouTube (33%), other family members other than parents or grandparents (31%), friends (28%) and grandparents (18%). While teens are inclined to think that personal finance should be taught at school, only one-in-five (18%) seek out information from their high school guidance counselor. Teens in households making more than $100,000 are more likely to seek information from parents and online resources than their peers in households making less than $100,000.

Concerns about the Future
When it comes to financially-related concerns about the future, more than half of respondents cited paying for  college/student loans (54%), followed by finding a fulfilling, well-paying job (52%), not being able to afford a home (49%), not having money management skills (43%), and not having savings for an emergency (42%).

Millennials have sometimes been referred to as 'the Boomerang Generation' because during the economic recovery many moved back home with their parents after college due to a weak job market and student loan debt

Many of these concerns were more pronounced with girls than boys. For instance, more girls than boys were concerned about paying for college/student loans (60% vs. 48%), finding a fulfilling, well-paying job (57% vs. 46%), not being able to afford a home (55% vs. 43%), not having skills to manage money (51% vs. 35%) and not having savings for an emergency (45% vs. 39%).

For more details on the 2018 JA Teens & Personal Finance Survey, read the summary here.

Methodological Notes:
The JA/AIG Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 nationally representative U.S. teens, ages 13-18, who are not currently enrolled in college, between March 9 and March 16, 2018, 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 3.1 percentage points 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 4.8 million students per year in more than 100 markets across the United States, with an additional 5.6 million students served by operations over 100 other countries worldwide. Visit www.ja.org for more information.
About AIG
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.