Survey Indicates Teens Lack Financial Preparedness

A new national survey by Wired Research and Jazmarc Services reveals that a majority of parents don't believe their teens understand personal finances or will make smart financial decisions in the future. Conducted in April 2024 among over 1,000 U.S. parents of teens aged 14-18, it highlights a worrying gap in financial readiness.

Key findings show that only 18% of parents think their teens are extremely prepared for future financial challenges. Additionally, 98% of parents feel responsible for teaching their teens about managing finances, and 97% believe equipping teens with financial decision-making tools is a crucial gift.

However, 70% of parents aren't confident in their teens' understanding of personal finances, and 63% doubt their teens will make smart financial decisions as they grow older. Most parents also haven't discussed important financial topics like selecting insurance (83%), investing money (67%), and planning for unexpected life events (62%) with their teens.

This research comes amid increasing emphasis on personal finance coursework in high school curricula. Danielle Sherman, CEO of Wired Research, and Joshua Marcus, founder of Jazmarc Services, both underscore the urgent need to improve teens' financial literacy to prepare them for adulthood.