ATLANTA–(BUSINESS WIRE)–In honor of Financial Literacy Month, Greenlight® Financial Technology, Inc. (“Greenlight”), the family-owned fintech company with a mission to help parents raise financially smart children, today released new national survey results that shed light on teenagers’ aspirations for their financial future. The survey aims to better understand the importance of financial literacy for the future of adolescents as well as the effect of the current economic climate.
The results show that teens know that financial literacy is key to achieving their life goals, but they still score an average of only 64% on the National Financial Literacy Test.
Survey information includes:
Teenagers have big life goals and are looking for financial knowledge to achieve them
The vast majority of families understand the importance of financial literacy for the future.
93% of teens think they need financial knowledge and skills to achieve their life goals, and 97% of parents agree.
Teens ranked having a well-paying job as their top financial life goal, followed by (2) having money saved up, (3) owning a home, (4) owning a vehicle, and (5) have no debt or student loans.
54% of teenagers aspire to become entrepreneurs, compared to 45% of their parents.
Teenagers have fewer jobs than previous generations and lack valuable practical experience
Despite the decline in the number of jobs among teenagers, they know that they will acquire important financial skills by working.
85% of parents had a job when they were 18, while only 53% of today’s teenagers say they had any work experience.
Teens ranked money management as the most valuable lesson they will learn while working, followed by (2) work ethic and (3) how to write a resume and interview.
35% of teens say the most important financial skill they need for their future is knowing how to budget and spend wisely and 32% say saving money is most important to them.
Half of parents (50%) agree that budgeting and spending wisely is the most important financial skill for their child’s future.
The current economic climate is causing financial hardship for the whole family
New and growing financial stressors reinforce the importance of financial literacy.
67% of parents and teens say money is one of the topics they talked about the most in the past six months, just after the pandemic (78%). Less discussed topics include politics, drugs and alcohol, sex, and natural disasters.
Parents and teens experience financial anxiety, citing gas prices (68%) and inflation (55%) as the top financial stressors. Interest rates (23%), taxes (21%), stock market volatility (20%) and student loans (19%) were also reported as stressors.
36% of parents and teens say they are increasing their budget due to inflation and the rising cost of goods.
Of those who invest, 43% continue to hold their investments for the long term due to stock market volatility.
“Parents and teens know the importance of financial knowledge and skills, but there continues to be a gap in financial literacy among young people. Today, teens are averaging 64% on the National Financial Literacy Test, well below the 70% passing mark,” said Jennifer Seitz, Certified Financial Education Instructor (CFEI) and Educational Content Manager. at Green Light. “At Greenlight, we focus on teaching children and teens the financial skills they need to be financially confident and independent for their future.
Greenlight offers a debit card and banking app that teaches kids and teens essential financial skills like how to earn, save, spend wisely, and invest. Today, Greenlight serves over 5 million parents and children, who have collectively saved over $225 million and invested over $10 million for their financial future.
This month, Greenlight is partnering with National Council of Financial Educators (NFEC) to launch “future you, an educational series designed for children and teens to improve National Financial Literacy Test scores. “Future You” lessons focus on seven core financial topics covered in the 30-question National Financial Literacy Test, including life goals, career goals, entrepreneurship, investing, banking, credit and insurance. Each lesson encourages children and teens to think about their future and learn the financial knowledge and skills they need to achieve their goals. Lessons are available through the Greenlight Blog, Greenlight App and Kahoot! quizzes so families can learn together.
“Financial literacy is one of the most important factors for a healthy future, but there is still a lack of financial education for young people,” said Vince Shorb, CEO of the National Financial Educators Council. “Greenlight offers children and teens the invaluable opportunity to learn financial skills through real-world experience. Now, with the new Future You lessons, families can also easily access educational resources to improve their children’s financial literacy. »
Children and teens, ages 10 and up, are encouraged to take the National Financial Literacy Test here after completing Greenlight’s “Future You” lessons.
The survey information was collected by Greenlight through a Researchscape survey conducted between March 18-20, 2022, among 1,096 respondents in the United States, split between teenagers aged 13-18 and parents of children aged 13 to 18. The results were weighted by age, sex and census region.
Greenlight Financial Technology is the family-owned financial technology company on a mission to help parents raise financially intelligent children. Its breakthrough product, Greenlight, is an all-in-one financial management platform specifically designed for families, with a debit card and accompanying app. Parents can automate allowances, manage household chores, set flexible spending controls, and invest for their children’s future. Children and teens learn to earn, save, spend wisely, give and invest with parental approval.
The Greenlight Card is issued by Community Federal Savings Bank, Member FDIC, pursuant to license from Mastercard International. Greenlight Investment Advisors, LLC, an SEC-registered investment adviser, provides investment advisory services to its clients. Investing involves risk and may include loss of principal. For more information, please visit: greenlight.com.
About the National Council of Financial Educators
the National Council of Financial Educators is a Certified B Corporation™ and IACET Accredited Provider focused on mobilizing financial wellness champions, educators and advocates around the world to empower people with better financial wellbeing. The overall vision is to create a world where individuals can make informed financial decisions that help them achieve their personal, family and community goals.