Talk Money to Teens

Now is the Time to Talk Money with Millennials
The New Year is frequently a time to re-evaluate personal financial goals, but according to research from The Allstate Foundation and Junior Achievement USA, it’s not just your finances you need to talk about. It’s also your teen’s.

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," says 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," says 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:

Have age-appropriate conversations about the importance of creating and using a budget. Many parents are unsure about their own ability to effectively manage their finances, but that shouldn't stop them from talking to their teens about the basics of personal finance. Even if it is tough to broach the subject of money with your children, JA has easy to use, free downloadable tools to help you get started.

Work with your teen to create a savings plan for buying something they want, whether it is a major purchase like a car, or something smaller like a tablet or laptop. Getting in the habit of saving for purchases, rather than relying on credit, develops self-discipline and an understanding of the importance of financial planning and smart money management.

Prepare for college. Many children dream of going to college but haven't discussed with their parents who will pay for their higher education. These conversations need to begin at a young age and develop over time.

Source: www.AllstateFoundation.org