The Recession Generation

Teens Have Learned Valuable Lessons As a Result the Great Recession

New Survey Finds Substantial Shifts in Teens’ Attitudes and Behaviors Regarding Money 

May 31st, 2011-The recession of the past couple of years has been hard for families, but today’s teens are helping reveal what may be a silver lining.  Charles Schwab’s 2011 Teens & Money Survey, which polled over 1,000 teens between the ages of 16 –18 during February-March 2011, found that nine out of 10 teens were “affected by the recession” and that the economic downturn provided a great learning experience them.  

“It seems clear that the Great Recession has changed the way teens think about money. It has given these ‘Recession Generation’ youth a deeper appreciation for what they have and how hard their parents work,” said Carrie Schwab-Pomerantz, senior vice president of Schwab Community Services. “The recession has also given parents and educators an enhanced opportunity to communicate critical lessons about financial decision-making.”

This shift in perspective could be due in large part to parents being more open with their children about their finances and financial challenges. The survey found that:

• Nearly two-thirds of teens are more grateful for what they have 
• 58 percent reported they are less likely to ask for things they want as a result of the recession
• 56 percent now have a greater appreciation for their parents’ hard work 
• More than a third appreciate their families more
• 73 percent said they’ve learned it’s important to have enough emergency savings in case times get tough, 59 percent said it’s easy to get carried away and spend too much when times are good, and 51 percent said it’s important to understand the consequences of borrowing money 

Joining Carrie Schwab-Pomerantz is eighteen-year-old Megan Wurm, National Ambassador for Money Matters: Make it Count, a financial education program provided by Boys & Girls Clubs of America (BGCA) and Charles Schwab Foundation.  They talk about the survey results and what the recession has meant for teens and their families.  

About the Talent: Carrie Schwab-Pomerantz, CFP^®, is senior vice president of Schwab Community Services, and president of Charles Schwab Foundation, a private, nonprofit organization funded by The Charles Schwab Corporation, whose mission is to help individuals and families achieve lifelong financial well-being through education, volunteerism and advocacy. In addition to overseeing the Foundation’s strategy and resources, she speaks and writes extensively about personal finance issues, offering guidance and advice for consumers. Megan Wurm is a high school senior from Sparks, Nevada.  She is the fourth annual National Ambassador for the Money Matters: Make it Count program provided by Boys & Girls Clubs of America (BGCA) and Charles Schwab Foundation. The National Ambassador serves as spokesperson for the program and is charged with promoting financial education for teens as the basis for lifelong financial health and well-being.