New MissionSquare Research Institute Study Reveals Insights into U.S. Teens' Outlook for Achieving Financial Independence

WASHINGTON, D.C. – A new report from MissionSquare Research Institute sheds light on the financial independence expectations of American teenagers. The study, titled "Expectations for Achieving Financial Independence among American Teenagers," explores how financial education, demographic factors, and financial concerns influence teens' confidence in achieving financial independence.

This report, co-authored by Zhikun Liu, PhD, CFP®, Vice President, Head of MissionSquare Research Institute at MissionSquare Retirement, and Yu Zhang, PhD, Assistant Professor of the Department of Personal Financial Planning at Kansas State University, highlights the importance of financial education in shaping teenagers' financial behaviors and their confidence in managing financial products, investments, and planning for the future. The study also examines the impact of psychological factors, such as financial concerns, on teens' perceptions of their financial future. Read the report.

This new study reveals that 44.3% of American teens express uncertainty, and 7.6% indicate pessimism about their financial future. This lack of confidence in their ability to achieve financial independence likely reflects the current socioeconomic climate and teens’ perceptions of their financial knowledge and readiness.

"Concerns are rising over uncertainty U.S. teens feel about their financial independence," said Liu. "With many teens unsure of their ability to achieve financial independence, policymakers, educators, and community leaders should consider and continue prioritizing targeted financial education programs to enhance teen’s financial independence and confidence. This study underscores the critical role of financial education in empowering teens to make informed economic decisions. It also reveals the significance of comprehensive strategies in cultivating teenagers’ preparedness for financial independence," Liu added.

Key findings of the report include:
  • Financial Concerns and Independence: Teens concerned about finances, especially regarding paying for college and saving for the future, showed a positive and significant association with certainty about achieving financial independence.
  • Impact of Financial Education: Experiencing financial education was positively associated with confidence in achieving financial independence, compared to teens with no exposure to financial education.
  • Age Factor: As teenagers age, they are increasingly likely to express confidence in their ability to achieve financial independence.
  • Employment Impact: Employed teenagers were less likely to confirm they will achieve financial independence.
  • Family Size Influence: Coming from a family with two or three children was associated with a greater likelihood of achieving financial independence than coming from single-child households.
  • Geographical Influence: Teens living in rural areas were more likely to confirm their belief in achieving financial independence compared to teens from a city.
  • Income Level: Teens from households with an income exceeding $150,000 were more likely to believe they would achieve financial independence compared to those from low-income families.

This report utilized data from the Junior Achievement and MissionSquare Foundation Fintech Survey. Conducted by Wakefield Research, the survey includes responses from 1,000 teenagers aged 13 to 18 across the United States, providing a nationally representative sample.

About MissionSquare Research Institute

MissionSquare Research Institute promotes excellence in state and local government and other public service organizations to attract and retain talented employees. The organization identifies leading practices and conducts research on retirement plans, health and wellness benefits, workforce demographics and skill set needs, labor force development, and topics facing the nonprofit industry and education sector. MissionSquare Research Institute brings together leaders and respected researchers. More information and access to research and publications are available here.

About MissionSquare Retirement

Since our founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based financial services company, we manage and administer over $72 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and financial education sets us apart. Explore how we enable public service workers to build a secure financial future. For more information, visit www.missionsq.org or follow the company on Facebook, LinkedIn, and X.

About MissionSquare Foundation

MissionSquare Foundation, launched in 2022 through an initial $20 million grant from MissionSquare Retirement, seeks to make a meaningful impact in our communities by focusing on the long-term well-being of youth. Our core initiatives focus on civic mindedness, financial capabilities, critical thinking and leadership development skills. We believe that cultivating these lifelong skills in our next generation supports strong, sustainable and thriving communities.

About Junior Achievement USA®

Junior Achievement (JA) is the world's largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for their future, and make smart academic and economic choices. Today, JA reaches more than 4.6 million students per year in 99 markets across the United States as part of 12.5 million students served by operations in more than 100 other countries worldwide. Junior Achievement USA is a member of JA Worldwide. For more information, visit www.ja.org.

*As of December 31, 2024. Includes 457(b), 401(k), 403(b), Retirement Health Savings (RHS) plans, Employer Investment Program (EIP) plans, affiliated IRAs, and investment-only assets.

Media Contact:

Bina Handa
MissionSquare Research Institute
brhanda@missionsq.org



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