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While over half of teenagers say they feel unprepared to finance their futures, more young people use mobile or online apps to manage money compared to before the pandemic, according to new research from Providence-based Citizens and Junior Achievement.
The fifth annual JA Teens & Personal Finance Survey showed a wide-ranging concern among teens regarding financial anxiety and the future, Citizens and Junior Achievement said in a statement, adding that the findings highlight the need for additional resources to help teenagers make financial decisions.
The study, conducted by Wakefield Research from Feb. 18-24, surveyed 1,000 teens between the ages of 13 and 18. More than two-thirds of respondents (69 percent) said that rising education costs have affected their educational plans after high school.
While 31 percent said they did not expect their plans to be affected, the statement said, 28 percent said they are now considering only in-state schools, while 22 percent plan to live at home and commute to college. About 10 percent said they are considering getting a two-year degree instead of a four-year degree.
“Empowering students and families financially can help them for the rest of their lives,” Kim Dee, executive vice president and head of the retail branch network at Citizens, said in the statement. “In order to ease uncertainly and ensure that teens have the confidence to make sound financial decisions, it’s critical to equip them with the skills and knowledge they need through increasing access to educational resources and providing hands-on training.”
To address some of their concerns, 39 percent of respondents wanted a better understanding of how student loans work, 38 percent wanted to know how education ties to jobs and 32 percent wanted access to lower-cost alternatives.
A significant portion of respondents, 41 percent, said they have had no financial literacy classes in school, the statement said, further highlighting the need for educational resources that would address these concerns.
“In order for students to feel confident financially it’s critical to equip them with the skills and knowledge to make sound financial decisions,” Chris Ebeling, head of student lending at Citizens, said in the statement. “Coming up with a strategy to pay for college can be daunting, but financially empowering students and families can help them for the rest of their lives.”
The survey also found increased use of apps among teens managing money since before the pandemic. According to the survey, 62 percent of teens use mobile or online applications to assist with money management, up from 48 percent in 2019. Fewer teens now receive cash from their parents, with 57 percent of respondents saying their parents use cash when giving them money, down from 71 percent in 2019. And 20 percent said their parents use apps to pay them, an increase from 9 percent in 2019.
The study did find a decline in the use of traditional financial tools by teens, with 59 percent using debit cards now compared to 62 percent in 2019; 24 percent using credit cards, down from 30 percent in 2019; and just 9 percent using checkbooks compared to 18 percent in 2019.
Junior Achievement is a global organization that helps young people obtain knowledge and skills for economic success, planning for the future, and making academic and economic choices. Citizens has partnered with Junior Achievement on implementing financial literacy programs in communities where Citizens has a presence, according to the statement.
