U.S. teens confess to lying about money: study  

They think about money a lot. Photo: Unsplash/Getty Images

When asked how Americans are faring financially, most admitted to having to make major adjustments due to the economy, according to the inaugural Wells Fargo Money Study.

Two-thirds (67%) of Americans say that they’ve cut back on spending, and almost half (45%) say they’ve put some life plans on hold. A third (35%) have dipped into their savings or investments. And almost two thirds (62%) say that even though they are able to pay their bills, they have little left over for “extras.”

“The data tells us that Americans – no matter who they are – are uncertain about the sustainability of their financial lives. We launched The Wells Fargo Money Study to help them get back on track. We took a unique, authentic and fresh look at money from the viewpoint of Americans of all demographics to get insight into how we can make better progress together toward our financial goals – whatever they may be,” said Michael Liersch, head of Advice and Planning for Wells Fargo.

The data reveals Americans’ real attitudes about money, including how they talk about money, whether it brings them joy or stress, how it informs their life narrative – or “money story” – and how they want help improving their approach to money.

On behalf of Wells Fargo, Versta Research conducted a national survey of 3,403 U.S. adults and 203 U.S. teens age 14 to 17.

Are Americans Over-Spending?

More than half of Americans (58%) report being able to live within their means and not worry about making ends meet, while fewer than half (40%) feel they are in good or great financial shape, and one in four (23%) say they are in poor shape. What’s more, almost half (44%) report having more debt than they feel comfortable with, and one in three (31%) report spending more than they can afford each month.

Despite concerns when managing spending, across all those surveyed, one-third (37%) say they have been putting more into savings and investments—while a full 69% of young affluent Americans report doing so. Similarly, three out of five (62%) feel that now is a good time to take advantage of new financial opportunities. And nine out of 10 (91%) feel it is a good time to be saving, though just one in seven (14%) feel it is a good time to borrow.

Thoughts and worries about money: Teenagers are concerned

A majority of Americans (57%) say their money story is different from that of their parents. Looking back, adults said they thought and worried about money a lot less when they were growing up compared to now. Today’s teenagers look more like today’s adults when it comes to thinking and worrying about money, with more than one in three saying they think about money a lot. In fact, 73% of teens say they sometimes over-focus on how much money they have or don’t have, and nearly all of teens (91%) want to learn new ways of thinking about and dealing with their money.

“It may be time to flip the frame when we think of communicating about money in families: Usually we think of kids needing to listen to parents when it comes to money. Perhaps it’s time we listen to our kids, who may have more insight than we think on how we should be open to learning about, and changing our money behaviors,” said Liersch.

Lying about money is common: Teens confess to doing it more than adults

Teens say they’ve lied more about money than adults when it comes to how much they spend on things, how much they save, how much their home is worth and how much money they grew up with. Specifically, half (50%) of teens confess they have lied about how much they spend on things (versus 32% of adults). Forty-two percent of teens also report that they have lied to others about their savings (versus 28% of adults), and 18% of teens have lied about how much their home is worth, compared to 7% of adults.

 “Teens appear compelled to lie more than adults about various aspects of their financial lives. We have to ask ourselves why. It may be from observing their parents’ behavior, peer pressure or the influence of social media. They may be embarrassed or ashamed of their or their family’s financial situation,” Liersch said. “There is also the possibility that teens are simply being more straightforward about the fact that they are dishonest about money. It’s important for Americans to understand the money messages American teens are receiving and why that compels them to lie about money.”



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