Junior Achievement USA® and The Allstate Foundation survey also indicates girls are not being talked to as much as boys about money management and see themselves with lower potential earning power
Junior Achievement USA® (JA) and The Allstate Foundation released today surprising findings from the annual Teens & Personal Finance Survey, which was expanded this year to include parents for the first time.
The 2015 survey reveals that nearly half of teens (48 percent) think their parents will help pay for college but only 16 percent of parents (of teens) report planning to pay for post-secondary education. Junior Achievement USA has commissioned the Teens & Personal Finance Survey for the last 16 years. The 2015 study was conducted online on Junior Achievement's behalf by Harris Poll in January 2015 among 801 parents of teens ages 13-18 years old and 800 teens ages 13-18 years old.
"Based on this year's findings, it is obvious that parents and teens need to have honest conversations about money management, including paying for college," said Jack E. Kosakowski, president and chief executive officer of Junior Achievement USA. "Together as a family, it is important to develop a plan for life after high school – whatever that looks like for your family. As an organization that strives to empower all young people to own their economic success, JA will continue to help open these channels."
The survey also reinforces that parents serve as teens' most influential teachers when it comes to money management skills. Eighty-four percent of teens report looking to their parents for information on how to manage money, but more than a third (34 percent) of parents says their family's approach to financial matters is to not discuss finances with their children and "let kids be kids." Millennial parents, ages 18-34, are the least likely to be confident about explaining money management to their kids: 60 percent report feeling confident, while 76 percent of parents ages 35-44 and 79 percent of parents ages 45-54 report feeling the same.
"This year's survey clearly shows parents play a critical role in helping their kids understand how to manage money and become financially savvy," said Jim Haskins, executive vice president, Allstate, and board member of Junior Achievement of Chicago. "Talking with our kids about money management at an early age prepares them to more confidently handle financial decisions in the future."
As with last year's survey, differences between boys and girls continue to come to light. When parents talk to their kids about money, it appears some are leaving girls out of the conversation more frequently. Teen girls are more likely than boys to say their parents don't talk to them enough about money management (40 percent to 24 percent) and paying for college (34 percent to 23 percent). When asked about their future earning power at their first "real" job, 24 percent of teen girls think they will make $15,000 or less, while only 16 percent of boys feel the same. Moms also are significantly more likely than dads to say their child will earn $15,000 or less (26 percent to 17 percent).
Other key findings from the survey include:
Interest in community college is on the rise. When asked to consider the rising cost of college, a larger number of teens in 2015 are considering attending a local community college instead of another college or university: 22 percent in 2014 rose to 29 percent in 2015.
The gender gap continues in personal finance lessons from parents. Teen boys are more likely than teen girls to report that their parents help them keep track of money (31 percent to 20 percent). Teen boys also are more likely than teen girls to report they learned to take care of money from parents (88 percent to 80 percent).
The number of teens who think their parents don't spend enough time talking to them about managing money significantly rose (21 percent in 2014 to 32 percent in 2015).
Since 2005, Junior Achievement and The Allstate Foundation have partnered to provide students with valuable information about personal finance in the classroom and help them apply it in their lives. The JA Economics for Success® program, created in partnership with The Allstate Foundation, has helped more than 1.2 million students 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.
An executive summary of the 2015 Junior Achievement USA/Allstate Foundation Teens & Personal Finance Survey is available by clicking here.
This survey was conducted online within the United States by Harris Poll on behalf of Junior Achievement between Jan. 12-30, 2015, among 801 U.S. adults aged 18 or older, who are the parents of teens aged 13-18 and 800 teens aged 13-18. Each group had an oversample of 200 Hispanics. The 2014 study was conducted online within the United States by Harris Poll and included 712 teens aged 13-18. Figures for age, race/ethnicity, education, region, and household income were weighted for parents where necessary to bring them into line with their actual proportions in the population. For teens, figures for age, gender, race, parent's education, region, and school location were weighted. Propensity score weighting was also used to adjust for respondents' propensity to be online.