Wealth problems are a major issue for America’s young people, according to new research from Junior Achievement USA and Citizens.
According to a survey of 1,000 teenagers between the ages of 13 and 18, 78% of teens are currently stressed out about money, while 65% of teens believe their happiness will depend on how much money they make. Furthermore, 74% of youth see their family’s financial situation as a challenge to accomplishing their personal future goals.
Although there are no new economic difficulties, it is obvious that teenagers are under pressure from years of financial strain and inflation that are related to pandemics:
- Over the past year, 50% of teens have expressed stress about their parents or their caregivers’ ability to pay their bills.
- 21% of teenagers report that their parents have cried or been upset over the ability to pay their bills, while 37% claim that their parents or caregivers are working more hours.
- 24% of teens are worried about losing their homes as a result of their family’s precarious financial situation, and 30% of teens are stressed about not being able to afford a post-high school education.
- 32% of teens are concerned, 24% are scared, 18% are sad, and 13% are mad about how money impacts their lives.
Teenagers reported high levels of stress and worry about money, but the study also found that teenagers feel they have some control over their financial future and need to learn more about managing money. Not all students have access to financial education programs at their schools:
- 80% of respondents think that understanding the importance of money in their lives would be beneficial.
- 73% say they would probably take a course on money management if given the opportunity.
- 42% of teenagers report taking lessons in class on how to handle money.
According to Haley Smith, “anxiety can have a negative impact on physical and emotional health, and wealth problems can be a major cause of stress.” This study demonstrates that young people in their homes are feeling many of the issues people have around managing money. One way to address the concerns today’s younger people have about their economic future is to have a better understanding of how cash works; this is why promoting financial literacy education is so crucial.
Building on their long-standing relationship, Citizens just announced a $415,000 offer to Junior Achievement USA to support economic empowerment programs that give people the confidence and resources they need to budget, save, invest, and pursue their goals. Citizens provides funding and volunteer support to help deliver financial education as part of the bank’s Citizens Helping Citizens Manage Money initiative.