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
NORTHBROOK, Ill., January 22, 2013 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:
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.