As the summer vacation approaches, teenagers are getting ready to have a great time, and parents are likely to be the ones covering the cost of their activities. However, before parents start spending, they may want to take this opportunity to teach their teens about managing finances. A recent national survey indicates that teens could use a lot of help when it comes to understanding money matters.
The study, conducted by global research company Wired Research and sponsored by Jazmarc Services, surveyed over 1,000 U.S. parents of teens aged 14-18. It revealed that teens are not well-prepared to handle their finances in the future. In fact, only 18% of parents believe that their teens are extremely prepared when it comes to finances.
These findings are part of the new 2024 Teen Financial Readiness Report, which provides a comprehensive look at how well-prepared today’s teens are when it comes to handling money. Key takeaways include:
- Parents believe their child’s financial know-how should start at home:
- 98% feel responsible for teaching their teens about managing their finances
- 97% think one of the greatest gifts they can give their teens is the tools to make smart financial decisions
- Parents doubt their teens; financial preparedness:
- 7 in 10 (70%) aren’t extremely confident their teens understand personal finances
- 2 in 3 (63%) aren’t completely convinced that as their teens get older they’ll make smart financial decisions
- Financial conversations aren’t a focal point: A majority of parents have not had a conversation about:
- Selecting insurance to protect their financial future (83%)
- Investing money (67%)
- Financially planning for unexpected life events (62%)
According to Danielle Sherman, founder and CEO of Wired Research, “This research comes at a time when states across the country are making personal finance coursework a critical part of high-school graduation requirements and our research validates why this is so important.”
Joshua Marcus, founder of Jazmarc Services, agrees. He says, “The research highlights just how financially underprepared teens are to enter adulthood. The data clearly underscores that there is still so much parents want to teach their teens so they will be ready to face whatever financial challenges come their way.”
