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Teens get a bad rap—and no, it’s nothing new. For generations, teenagers have been associated with rude rebelliousness, an aversion to authority and a sense of self-importance. Though some of these ideals may be warranted, not all associations with teenagers should be deemed negative—especially when it comes to managing their finances. Does this come as a shock? It’s not unusual to be skeptical—especially when statistic after statistic shows that Americans are lacking when it comes to their personal savings. However, a recent survey by TD Ameritrade revealed a host of surprising stats about teens and their finances—and shows that the 13 to 19 age group is actually doing a pretty good job.
Check out these surprising stats about teens and their finances.
- Teens had their first paid job on average at age 14. In addition, more teens than young millennials had their first paid job between the ages of 10 and 14 (21 percent vs. 14 percent). As teens get older, the average age will increase as more have their first paid job.
- Teenagers earn an average of $465 per month. Half of all teens work outside of the home each month to earn this money. Though it may not seem like a lot, keep in mind that teens likely live at home and have few to no bills to pay. Therefore, a significant amount of that $465 can go to savings.
- Fifty-six percent of teens surveyed already have savings. Teens are saving an average of $290 per month, which is more than what many adults are putting into savings on a monthly basis. The average age for teens to start saving is 12, compared to age 17 for millennials.
- More than 40 percent of teenagers maintain a budget. Establishing sound budgeting habits is one of the best ways to set yourself up for financial success early on in life. With 40 percent of teens budgeting, that means that 40 percent of teens are actively tracking their spending.
- Approximately 58 percent of teens plan to work part-time during college. One-third of teens at college or expecting to go to college have or plan to get a year-round paid internship, and 47 percent of teens at college or expecting to work during college pan to work independent or freelance jobs either during the school year or during the summer.
- About 41 percent of teens say they are saving specifically to pay for college. Also, 30 percent are saving to purchase a vehicle, and 8 percent said they are even setting aside money to pay for retirement.
In considering this data about teens and their finances, it seems that the young age group may have a better grasp on their fiscal responsibility than one may think on the surface. Starting early making smart savings decisions is the best way to set oneself up to make successful financial choices throughout life, which can make all the difference when it comes time to retire.
Keep in touch with Ty J. Young Inc.’s Retirement You Earned blog for more insight into successfully saving for retirement, or call our financial advisors today at 877-912-1919!