New Jersey Teens Trying to Make "Cents" of Finances, New Poll Shows Managing Money is New "Elephant in the Room" for Great Recession Families
Bridgewater, NJ, April 15, 2011 --(PR.com
)-- A new study from Junior Achievement and The Allstate Foundation shows that 82 percent of New Jersey teens say the Great Recession has motivated them to learn more about managing their money, and parents are their number one resource for financial planning, yet only half of teens say they have discussed money management with their family.
“Refreshingly, we are learning that parents have a major influence on how their children learn to manage money,” said Catherine Milone, president of Junior Achievement of New Jersey. “So, parents should speak to their children about money management at a young age because one is never too young to start forming good habits.”
Tougher economic conditions have pushed teens to make money management a higher priority than in the past. Nearly 89 percent of teens plan to save more and 83 percent will spend less in the wake of the recessive economy.
To help jump start a family conversation about money management at home, Junior Achievement, in collaboration with The Allstate Foundation, recently launched a series of free online lessons (www.ja.org/courseware/) that empower youth to own their future economic success. The lessons, the first resource of its kind from Junior Achievement, engage kids in an online space to learn about money in a fun and entertaining way.
“How you handle your money at a young age could one day impact your ability to get a house or job,” said William P. Ballinger, president of Allstate New Jersey Insurance Company. “Habits that begin early head off an early adulthood of financial duress.”
Junior Achievement’s online and in-classroom curriculum teach age-appropriate concepts around spending, sharing, and saving money. Elementary students learn about taking responsibility for financial decisions, how to make those choices based on prioritizing needs and wants, and then develop a plan for spending and saving. Middle school students learn to take income into account to create a personal spending and savings plan that uses different payment methods, including credit. High school students build on these lessons and apply them to real-life scenarios such as buying a car and paying for college.
Other key findings from the poll include:
- 85 percent of New Jersey teens surveyed say K-12 is the best time to learn money management.
- 89 percent of New Jersey teens say they will be as financially well off as their parents. 52 percent of African American and Hispanic teens feel they will be better off than their parents, compared to only 27 percent of Caucasian teens.
- 92 percent of New Jersey teens say they currently learn how to manage money from their parents / guardians.
- 82 percent of New Jersey teens use a savings account, checking account, debit card, or credit card.
- 40 percent of New Jersey teens are unsure how to use a credit card effectively, yet 27 percent think high school or younger is when they should get their first credit card.
This is the twelfth year that Junior Achievement has conducted its “Teens and Personal Finance” survey.
This report presents the findings of a telephone survey conducted among a sample of 201 teens comprising 101 males and 100 females 12 to 17 years of age, living in private households in New Jersey. Interviewing for this TEEN CARAVAN® Survey was completed during the period of March 3-8, 2011. The survey’s margin of error is +/- 3.2 percent.
About Junior Achievement (JA)
Junior Achievement is the world's largest organization dedicated to inspiring and preparing young people to succeed in a global economy. Through a dedicated volunteer network, Junior Achievement provides in-school and after-school programs for students which focus on three key content areas: work readiness, entrepreneurship, and financial literacy. Today, 126 individual area operations reach four million students in the United States, with an additional 5.8 million students served by operations in 123 other countries worldwide.
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 Allstate New Jersey
Known through the “You’re In Good Hands With Allstate®” slogan, Allstate New Jersey Insurance Company and its affiliates help individuals in more than a half million New Jersey households protect what they have today and better prepare for tomorrow through approximately 270 agents and financial representatives. Customers can access Allstate New Jersey products and services through Allstate agencies, or at allstate.com and 1-800 Allstate®. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.