PROVIDENCE – The kids are not all right, at least not when it comes to paying for college, according to a new study by Citizens Financial Group Inc. and Junior Achievement of Rhode Island.
More than half of teenagers surveyed in the 2022 Junior Achievement Teens & Personal Finance survey said they felt financially unprepared for their futures, including the cost of higher education. And nearly 7 in 10 say that rising costs are affecting their post-high school plans.
For some (around 28%), that means looking at in-state schools only, while another 22% plan to live at home and commute to college. One in 10 are considering a two-year degree rather than a four-year program.
Another top concern is access to the technology needed to complete a college degree, shared by two-thirds of teenagers who plan to pursue a four-year degree, according to the survey. This included worries over the cost of devices and poor Wi-Fi access or connectivity.
The survey also included information on how teens understand and manage their money now. Lack of financial literacy remains a problem, with 41% of those surveyed saying they don’t have financial literacy classes in school.
“Empowering students and families financially can help them for the rest of their lives,” said Kim Dee, executive vice president and head of the retail branch network at Citizens. “In order to ease uncertainty and ensure that teens have the confidence to make sound financial decisions, it’s critical to equip them with the skills and knowledge they need through increasing access to educational resources and providing hands-on training.”
Other findings included:
- 62% of teens use mobile or online banking, up from 48% in 2019.
- 38% of teens prefer to pay with cash, compared with 2% who prefer paying with mobile apps.
- Traditional finance tools such as debit and credit cards and checkbooks are used less frequently by teens now than in 2019, including a 50% drop in checkbook use.
The study reflects results of online surveys of 1,000 teenagers ages 13 to 18.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
