Key Points
- A new survey reveals only 8% of parents believe their teenagers are “extremely prepared” to manage their finances in adulthood, a significant drop from 18% last year.
- The current economic climate is a major factor contributing to parents’ own financial anxieties, which influences their confidence in preparing their teens.
- While most parents (82%) discuss savings, many avoid more complex topics like budgeting, debt, credit, taxes, and investing.
- Experts and experienced parents advise turning financial struggles into teachable moments through open and honest conversations.
- Practical methods like a monthly allowance and letting teens save for their own purchases can provide invaluable, low-risk financial lessons.
A startling new survey has cast a spotlight on a growing fear among American parents: the vast majority feel their teenage children are not equipped to handle the financial realities of adulthood. The poll, conducted by Wired Research on behalf of Jazmarc Services, found that a mere 8% of parents believe their teens are “extremely prepared” to manage their own money, marking a steep 10-point decline from 18% just a year ago.
This collapse in confidence comes amid a turbulent economic landscape, where recession fears and financial instability have left many adults feeling shaky about their own finances. Danielle Sherman, CEO and Founder of Wired Research, suggests this uncertainty is directly impacting parents’ views on their children’s readiness.
“If they’re feeling shaky about maybe their own preparedness, or their own confidence in being able to navigate this climate, it naturally follows that they feel less certain about how well-prepared their own teens might be,” Sherman explained.
The Widening Gap in Financial Education at Home
The survey of 1,000 parents with children aged 14 to 18 highlighted a significant disconnect between what parents believe they should teach and what they actually discuss. While an encouraging 82% of parents have talked with their teens about the importance of savings, about seven in ten admitted they aren’t confident they’ve covered the other essential financial bases.
Crucial topics are being left off the table in many households. According to the survey, about half of the parents had not talked with their teens about fundamental skills such as:
- Sticking to a budget
- Managing bank accounts
- Avoiding debt
- Building good credit
Furthermore, a majority confessed to not having meaningful conversations about more advanced but vital subjects like selecting insurance, filing tax returns, investing for the future, and long-term financial planning. This is despite the near-unanimous agreement among parents that teaching financial literacy is their responsibility (98%) and one of the greatest gifts they can offer their children (97%).
Turning Financial Hardship into a Teachable Moment
Financial expert Samantha Broxton, founder of the parenting platform RaisingSelf.com, experienced this challenge firsthand. When her husband was unexpectedly laid off in early 2025, she and her husband decided to be transparent with their teenagers about the family’s new financial situation.
“We need to rebuild savings, and the kids need to understand that we have to be more intentional,” Broxton said of the conversation, where they explained that the family would be eating out less. She believes that avoiding the topic is more harmful than confronting it.
“Kids are going to notice your change in behavior, your pauses, your ‘no’s,'” Broxton warned. “Not talking about it is more likely to cause them to be suspicious and anxious.”
Sherman agrees, advocating for parents to normalize conversations about money, even when it involves admitting their own mistakes. She recommends parents explain how poor budgeting may have led to an overdraft fee or credit card debt. “These are not going to be easy conversations to have,” Sherman said, “but it could very well be the thing that helps your teen not fall into the same financial cycle.”
Practical Ways to Empower Teens with Financial Skills
Beyond conversations, hands-on experience is key. Broxton has implemented practical strategies to give her children a safe space to learn about money management.
A Monthly Allowance for Real-World Budgeting
Broxton gives her children their allowance once a month rather than weekly. This encourages them to budget their money over a longer period and make conscious decisions about spending versus saving.
The Power of Learning from Experience
She has also watched her children save diligently for a big purchase, only to feel the sting when that money disappears from their account. This first-hand experience teaches a powerful lesson about the value of money and the emotional side of spending.
“That feeling of saving your money, buying a thing, and seeing those savings disappear… There is a psychological journey they’re being able to safely experience with their parents without that material risk to their safety and livelihood,” Broxton concluded. By fostering these experiences, parents can help bridge the confidence gap and better prepare their teens for the complex financial world that awaits them.
