A new study from Junior Achievement and The Allstate Foundation reveals that teens are feeling the fallout from the recession in a number of ways. Two-thirds of teens are changing their college plans due to the recession: half are working more to pay for college and 42% now plan to attend college close to home.
Also, compared to 2010, more teens are working to pay for college (an increase of 9%) and planning to stay closer to home for school or not go to an out-of-state college (an increase of 5%). And nearly half of teens surveyed report that they are more concerned about the economy than last year and 63 percent say their families are spending less due to the recession.
"Teens face many tough decisions in their lives. Two of the biggest are where to go to college and more importantly, can they afford the high costs that come with it," said Matt Winter, president and CEO, Allstate Financial. "In today's global economy, getting a financial head-start can lead to big pay-offs in the future. That's why educating kids about money management is so important to us and to the financial health of our country."
Optimism among Teens Despite Less Financial Support
Despite the recession's changes to their lives, teens are optimistic about their hopes for the future: 97 percent of teens surveyed plan on going to college and 83 percent believe they'll be financially independent of their parents by age 24. Recent trends, however, prove these beliefs might be a bit optimistic. With economic recovery limping along, many Americans are still out of work and struggling, having to put retirement plans and college attendance for their children on hold.
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Economics Crash Course: Teens Learn College Education Doesn't Come Cheap
This release was originally posted to the Allstate Newsroom on May 31, 2011
Meri A is an advocate for the Allstate Newsroom
