New Year Creates Opportunity for Finance Conversation and Resolutions with Millennials
Research from The Allstate Foundation and Junior Achievement USA shows year-over-year decline in teen savings rates; organizations offer tips for family money management conversation
The New Year is frequently a time to re-evaluate personal financial goals and research from The Allstate Foundation and Junior Achievement USA shows that for America's teens, it might be more pressing than ever before. The Teens and Personal Finance Poll, conducted annually by The Allstate Foundation and Junior Achievement USA, found that the number of teens who report saving at least half of their income declined 28 percent from 2011.
"Our Teens and Personal Finance Poll continues to identify trends that need action," said Vicky Dinges, vice president of public social responsibility at Allstate. "While there's a 13 percent decline in teens saying they don't know how to use a budget, there's also a 10 percent increase in teens telling us budgets are for adults. The Allstate Foundation and Junior Achievement have built a strong series of teen programs, like JA Economics for Success® to reverse these trends and positively influence the next generation, so they can achieve their financial goals."
Since 2005, Junior Achievement USA and The Allstate Foundation have partnered to help students take the valuable information learned about careers, budgeting, personal finance, and credit in the classroom and apply it in their lives. The Junior Achievement JA Economics for Success program, created in partnership with The Allstate Foundation, has helped more than 1.2 million students to develop, plan and set personal financial goals to protect them in the future.
"Parents are the most important influence when it comes to teens and behavior with money," said Jack E. Kosakowski, president and chief executive officer of Junior Achievement USA. "Our research indicates that 86 percent of teens report their parents are the number one influence when it comes to money management, which creates a unique opportunity for family conversation. De-mystifying money and finance for this upcoming generation needs to be a priority with every New Year."
The Allstate Foundation and Junior Achievement USA offer these simple tips and facts for starting a conversation with teens about money management and saving:
- Have age-appropriate conversations about the importance of creating and using a budget. Many parents are unsure about their own ability to effectively manage their finances, but that shouldn't stop them from talking to their teens about the basics of personal finance. Even if it is tough to broach the subject of money with your children, JA has easy to use, free downloadable tools to help you get started.
- Work with your teen to create a savings plan for buying something they want, whether it is a major purchase like a car, or something smaller like a tablet or laptop. Getting in the habit of saving for purchases, rather than relying on credit, develops self-discipline and an understanding of the importance of financial planning and smart money management.
- Prepare for college. Many children dream of going to college but haven't discussed with their parents who will pay for their higher education. These conversations need to begin at a young age and develop over time.
This report presents the findings of an online survey conducted from March 8-19, 2012, among a national sample of 1,059 teens ages 14-18. The survey's margin of error is +/- 3 percent at the 95 percent confidence level.
About The Allstate Foundation
Established in 1952, The Allstate Foundation is an independent, charitable organization made possible by subsidiaries of The Allstate Corporation (NYSE: ALL). Through partnerships with nonprofit organizations across the country, The Allstate Foundation brings the relationships, reputation and resources of Allstate to support innovative and lasting solutions that enhance people's well-being and prosperity. With a focus on teen safe driving and building financial independence for domestic violence survivors, The Allstate Foundation also promotes safe and vital communities; tolerance, inclusion, and diversity; and economic empowerment. For more information, visit www.AllstateFoundation.org.
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 4.2 million students per year in more than 120 markets across the United States, with an additional 6.5 million students served by operations in 119 other countries worldwide. Visit www.ja.org for more information.
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