Teens may love technology, but most still rely on cash when it comes to purchases and getting money from mom and dad. In fact, 80 percent of teens who receive money from parents or caregivers say it is in the form of cash and 75 percent of teens say they have made purchases in cash. Despite this, budgeting apps are gaining in popularity.
These are some of the findings from a new survey of 1,000 teens between the ages of 13 and 18 by Junior Achievement USA (JA) and Alliance Data, a leading global provider of data-driven marketing and loyalty solutions. The survey was conducted between July 16 and 23, 2019 by Wakefield Research and has a margin of error of +/- 3.1%. The survey findings are being released to coincide with National Financial Awareness Day on August 14, 2019.
Despite the use of cash, financial technology is having an impact on today’s teens. As a global provider of consumer-centric marketing, loyalty and payments solutions, Alliance Data partnered with Junior Achievement to assess current priorities in financial education and literacy among U.S. teens.
Key findings from the survey include:
- A quarter of teens (26%) who received money from parents or guardians said it was wired into their bank account, while nearly as many (23%) used their parent or caregiver’s credit card for online purchases. Fewer (10%) used financial apps like Apple Pay or Venmo to receive money or purchase items.
- Despite the use of cash, nearly half of teens (48%) said they do use mobile or online apps to manage their money, such as for budgeting and planning purposes.
- Nearly one-in-five teens (17%) have never been in a physical bank and a third of teens (34%) don’t have a bank account. Of those who do, the largest percentage (35%) got them at 12 years of age or younger.
- Of those with a bank account, most have a debit card (62%), while far fewer use a checkbook (18%)
- Most teens (71%) say they are concerned about their credit score, while nearly half (44%) are concerned about future student loan debt.
“These survey results show that today’s teens are very much aware of the need to effectively manage money and that for many, technology is being used as a tool to achieve that, even when teens are working with cash,” said Jack E. Kosakowski, President and CEO of Junior Achievement USA. “It’s encouraging to see that today’s young people are being proactive in how they view money and are using resources at their disposal to become better stewards of their financial futures.”
Alliance Data is a long-time partner of Junior Achievement, and its employees nationwide volunteer their time to help students on the path to financial literacy and economic independence. With a deep focus on customers, Alliance Data uses rich data, analytics and insights to drive sales for its brand partners and deliver compelling payment offerings.
“Alliance Data’s research of consumers across age demographics shows that the most important innovations are those that save time and increase convenience,” said Wes Hunt, VP of Enterprise Data and Analytics at Alliance Data. “The results of this survey reinforce that the technology solutions younger generations will likely adopt over time will be those that meaningfully enhance their experience and make it worth it for them to trade cash for technology.”
Methodology
The JA/Teens-FinTech Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 US Teens, Ages 13-18 between July 16 and July 23, 2019, using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
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