Executive Portfolio

This article was written by Danielle

As back-to-school approaches, teens have lots on their minds – from classes to social calendars. If that weren’t enough, teens – especially girls — are also stressed out about the economy and money matters, according to a new survey from Seventeen magazine and Bank of America that explores teens’ saving and spending habits.

Most teens are stressed about money, but teen girls are feeling slightly more anxious in today’s climate than boys, with more than eight in ten girls (85%) saying they’re worried about the economy, vs. 75% of teen boys. And nearly nine of ten girls (88%) say they’re fretting about money, vs. 82% of teen boys, according to the survey.

Girls’ fears range from not having enough cash to pay for things they want — like lip gloss and mini dresses — to how to pay for college, to having money to hang out with friends. Teen girls are more likely to be stressed about college funding than teen boys, with more than two-thirds of girls (69%) saying they’re frazzled about paying for education costs, vs. 59% of teen boys.

“Teens are largely recession-proof. They are still buying clothes, beauty products and entertainment. But they can’t avoid the larger cultural anxiety about the economy,” says Seventeen editor-in-chief Ann Shoket. “It’s our job to calm their fears and help them to make smart decisions about their money so they can grow into fiscally responsible adults.”

Two out of three girls say they save some cash, but admit it’s not enough, according to the survey. Girls also say they’re better at spending than stashing, and only one in three (34%) believe they’re in total control of their finances. The Seventeen magazine and Bank of America survey also revealed that when given a choice, teen girls are more likely to choose fun over finances. Notably, if given $100 for their birthday, 55% of teen girls say they would spend it on clothes, while 45% would save it for college.

Regardless of financial anxieties, the large majority of teen girls (76%) are still optimistic about their future and their ability to support themselves as adults. More than eight in ten girls (82%) think they’ll be better off than their parents some day. Nearly two-thirds (64%) of girls says they’d rather have a career that makes a difference over one that makes a lot of money.

“Teen attitudes about spending and saving mirror what all consumers are feeling,” says Beverly Ladley, Customer Strategy Executive at Bank of America. “While their parents still largely support them, teens are interested in learning how to become more financially independent and make smarter decisions about money — and we have the opportunity to help them.”
Other findings from the survey:

– Nearly half (45%) of teens say their parents are worrying/fighting
about money more often lately.

– Four in 10 teens (38%) have had to alter their college plans in some
way because of the current economic downturn, while one in five have
had to either go with their second choice of because of cost or attend
a state school instead of a private one in order to save money.

– A large portion of teens have changed their spending habits as a
result of the economy (65%); this is especially true among Hispanic
teens (75%).