By Quentin Fottrell
Parents, take a bow. Thanks to the recent recession, your kids better appreciate how hard you work and are less likely to ask for stuff.
Nearly 60% of teenagers say they have a greater appreciation for their parents’ work, while 58% say they are less prone to ask them for things they want due to the recent recession, according to a new study by financial services group Charles Schwab.
On top of that, 77% of teens aged 16-18 consider themselves “Super Savers” as opposed to 23% who characterize themselves as “Big Spenders.” On average, the teens have nearly $1,000 saved, and over three-quarters (76%) say their main reason for saving is to pay for college.
The kids in America are also reining in their spending: 55% now spend less than $20 less per week compared with 41% in 2007, according to the Charles Schwab survey.
Here are the Top 3 lessons teenagers have learned from the recession:
- It’s important to have enough emergency savings in case times get tough (73%).
- It’s easy to get carried away and spend too much when times are good (59%).
- It’s important to understand the consequences of borrowing money (51%).
Carrie Schwab-Pomerantz, senior vice president of Schwab Community Services, says teens’ new perspective on finances could be a “silver lining” to the recession. “It seems clear that the great recession has changed the mindset of teens,” she says. “It has given this recession generation youth a deeper appreciation for what they have and how hard their parents work.”
And yet for all this new-found consumer responsibility, teens have a lesser grasp of basic personal financial concepts: only 39% of 18-year-olds know how to manage a credit card compared to 64% in 2007, while those who can balance a checkbook or check the accuracy of a bank statement fell to 42% from 60% in 2007.
Parents and teens, does this tally with your experience?