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Teens, College Students and Finance - US - May 2014

Published By :

Mintel

Published Date : Jun 2014

Category :

Banking

No. of Pages : 170 Pages

For financial institutions to be successful, they need to build their future customer base from among young people. However, the number of teenagers and college students is projected to shrink, and many of them aren’t interested in financial topics, anyway. Reaching them will require meeting them where they are, meaning that institutions need to adopt new methods of communications if they want to grow.
Table of Content

Scope and Themes

What you need to know
Consumer survey data
Direct marketing creative
Abbreviations

Executive Summary

The market
Figure 1: Current and projected population of people aged 5-17 and aged 18-24, 2010, 2015, 2020, 2025
College enrollment
Figure 2: Percentage of 18-24 year olds enrolled in degree-granting institutions, by level of institution, 1990 - 2012
Market drivers
Unemployment
Figure 3: Unemployment rate for total population and those aged 16-24, Jan. 1, 1992-April 1, 2014
The consumer
Figure 4: Types of financial accounts and products owned, by age, checking account, savings account, credit card – In my own name, February 2014
Figure 5: Types of financial accounts and products owned, by gender – In my own name, February 2014
Figure 6: Channels used for checking account activities, by gender and age, February 2014
Figure 7: Attitudes toward finances and financial education, February 2014
Figure 8: Attitudes toward saving and spending, by race/Hispanic origin, February 2014
What we think

Issues and Implications

Why focus on young people?
Issues:
Implications:
How can institutions most effectively reach this group?
Issues:
Implications:
How can financial institutions adapt to changing student demographics?
Issues:
Implications:

Trend Application

Inspire Trend: Experience is All
Inspire Trend: Edutainment
Mintel Futures: Generation Next

Market Drivers

Key points
Population growth by age
Figure 9: Current and projected population by age, 2010, 2015, 2020, 2025
Civilian labor force
Figure 10: Civilian labor force by age, overall (16+) and ages 16-24, 1992, 2002, 2012 and 2022 (proj.)
Figure 11: Employed persons 16 to 24 years old by industry, July 2013
College enrollment
Figure 12: Percentage of 18-24 year olds enrolled in degree-granting institutions, by level of institution, 1990 - 2012
Figure 13: College enrollment in public and private college, by race/Hispanic origin, 2002-12
Figure 14: Racial/ethnic composition of college enrollment, 2003, 2012
Figure 15: Percentage of high school graduates aged 18-24 enrolled in college, by race/Hispanic origin, 2003-12
Figure 16: Percentage of high school graduates aged 18-24 enrolled in college, by gender, 2003-2012
College graduation rates
Figure 17: Percentage of four-year college students graduation in five years, 2003-2012
Young adults and labor force participation
Figure 18: Labor force participation rate, overall and ages 16-24, 1992, 2002, 2012 and 2022 (proj.)
Unemployment
Figure 19: Unemployment rate for total population and those aged 16-24, Jan. 1, 1992 – April 1, 2014
Figure 20: Unemployment rate – high school graduates not enrolled in college, 16-24 years old, Jan. 1, 1992 – April 1, 2014 (not seasonally adjusted)
Figure 21: Unemployment rate – enrolled in college full time 16-24 years old, Jan. 1, 1992 – April 1, 2014 (not seasonally adjusted)
Figure 22: Unemployment rate – enrolled in high school 16-24 years old, Jan. 1, 1992 – April 1, 2014 (not seasonally adjusted)
Legislation
The Card Act
Financial literacy legislation

Demographics of Teens and College Students

Key points
Racial diversity of young population
Figure 23: Projections for population aged 15-24, by race/Hispanic origin, 2011 - 2015
Income of young households
Figure 24: Household income, householders aged 15-24, 2008-12
College enrollment by the numbers
Figure 25: Projected enrollment of ages 14-24 in all post-secondary degree-granting institutions, 2012-16
Figure 26: Projected enrollment in degree-granting institutions by race/Hispanic origin, 2012-2016
Figure 27: Total fall enrollment in degree-granting post-secondary institutions, by state, 2008, 2010, 2012

Innovations and Innovators

Key points
The traditional education model is being challenged
Enstitute
Open-source textbooks
MOOCs
Google’s Oppia
Financial literacy
PwC’s Earn Your Future Financial Literacy Lessons
Academic initiatives
Games and gamification for financial learning

Marketing Strategies

Key points
Brand analysis: Bank of America
Figure 28: Brand analysis of Bank of America, 2014
BankAmericard Visa for Students
Figure 29: Bank of America - American Student Dental Association Visa card acquisition email ad, April 2014
MyAccess Checking
TV presence
Figure 30: Bank of America/Khan Academy Better Money Habits: Understanding Credit video, November 2013
Social media
Brand analysis: Discover
Figure 31: Brand analysis of Discover, 2014
Discover it Card
Figure 32: Discover it Card affinity direct mail acquisition ad, 2014
Discover it for Students
Figure 33: Discover it Card for Students email ad, 2014
TV presence
Figure 34: Discover it card television advertising, 2014
Social media
Brand analysis: Citi
Figure 35: Brand analysis of Citi, 2014
Citi Dividend Card for College Students
Citi ThankYou Preferred Card for College Students
Figure 36: Citi Thank You Preferred Card television ad, 2014
Social media
Brand analysis: American Express
Figure 37: Brand analysis of American Express, 2014
American Express Campus Edition prepaid cards
Social media
Figure 38: American Express Sync campaign instructional video, 2014
Figure 39: American Express Venture Accelerator by OPEN Forum, 2014
Brand analysis: Upromise
Figure 40: Brand analysis of Upromise, 2014
Upromise World MasterCard
Social media
Figure 41: Upromise email ad, 2014

Teens and Young Adults – Financial Accounts and Products Owned

Key points
Types of financial accounts in own name
Figure 42: Types of financial accounts and products owned – in own name, by gender, February 2014
Figure 43: Types of financial accounts and products owned – in own name, by age, February 2014
Figure 44: Types of financial accounts and products owned – in own name, by household income, February 2014
Figure 45: Types of financial accounts and products owned – in own name, by race/Hispanic origin, February 2014
Figure 46: Types of financial accounts and products owned – in own name, by educational status, February 2014
Figure 47: Types of financial accounts and products owned – in own name, by educational goal, February 2014
Joint account with parents
Figure 48: Types of financial accounts and products owned – joint account with parents, by gender, February 2014
Figure 49: Types of financial accounts and products owned – joint account with parents, by age, February 2014
Figure 50: Types of financial accounts and products owned – joint account with parents, by household income, February 2014
Figure 51: Types of financial accounts and products owned – joint account with parents, by race/Hispanic origin, February 2014
Figure 52: Types of financial accounts and products owned – joint account with parents, by educational status, February 2014

Teens and Young Adults – Banking Channels Used

Key points
Four in 10 visit branches, a similar number use computers
Figure 53: Channels used for checking account activities, by gender, February 2014
Figure 54: Channels used for checking account activities, by gender and age, February 2014
Figure 55: Channels used for checking account activities, by educational goal, February 2014
Savings accounts
Figure 56: Channels used for savings account activities, by gender, February 2014
Figure 57: Channels used for savings account activities, by gender and age, February 2014
Figure 58: Channels used for savings account activities, by educational status, February 2014
Investment accounts
Figure 59: Channels used for investment account activities, February 2014
Credit cards
Figure 60: Channels used for credit card account activities, by age, February 2014
Secured credit cards
Figure 61: Channels used for secured vs unsecured credit card account activities, February 2014

Teens and Young Adults – Attitudes toward Finances and Financial Education

Key points
Videos are the way to reach young adults
Figure 62: Attitudes toward finances and financial education, by gender, February 2014
Figure 63: Attitudes toward finances and financial education, by age, February 2014
Figure 64: Attitudes toward finances and financial education, by race/Hispanic origin, February 2014
Figure 65: Attitudes toward finances and financial education, by educational status, February 2014

Teens and Young Adults – Primary Types of Expenditures

Key points
Automobiles are the budget breaker for young adults
Figure 66: Primary expenditure categories, by gender, February 2014
Figure 67: Primary expenditure categories, by age, February 2014
Figure 68: Primary expenditure categories, by race/Hispanic origin, February 2014
Figure 69: Primary expenditure categories, by educational status, February 2014

Teens and Young Adults – Sources of Income and Financial Assistance

Key points
Half or more of teens get an allowance
Figure 70: Primary sources of funds, by gender and age, February 2014
Figure 71: Primary sources of funds, by educational status, February 2014

Teens and Young Adults – Attitudes toward Saving and Spending

Key points
Usage of mobile apps and online tools is low
Figure 72: Attitudes toward saving and spending, by age and gender, February 2014
Figure 73: Attitudes toward saving and spending, by race/Hispanic origin, February 2014
Figure 74: Attitudes toward saving and spending, by educational status, February 2014
Figure 75: Attitudes toward saving and spending, by educational goal, February 2014

Teens and Young Adults – Payment Methods for Everyday Expenses

Key points
Rent/mortgage
Figure 76: Payment method used to pay rent/mortgage, by age, February 2014
Figure 77: Payment method used to pay rent/mortgage, by educational status, February 2014
Auto expenses
Figure 78: Payment method used to pay for auto related expenditures, by age, February 2014
Figure 79: Payment method used to pay for auto related expenditures, by educational status, February 2014
Personal care
Figure 80: Payment method used to pay for personal care, by age, February 2014
Figure 81: Payment method used to pay for personal care, by educational status, February 2014
Entertainment
Figure 82: Payment method used to pay for entertainment, by age, February 2014
Figure 83: Payment method used to pay for entertainment, by educational status, February 2014
Dining out
Figure 84: Payment method used for dining out, by age, February 2014
Figure 85: Payment method used for dining out, by educational status, February 2014
Groceries
Figure 86: Payment method used for groceries, by gender, February 2014
Figure 87: Payment method used for groceries, by college student status, February 2014

College Students – Financial Brands Used

Key points
Primary bank
Figure 88: Primary bank used in last 12 months, college students by gender, November 2012 – December 2013
Figure 89: Primary bank used in last 12 months, college students by age, November 2012 – December 2013
Figure 90: Primary bank used in last 12 months, college students by race/Hispanic origin, November 2012 – December 2013
Figure 91: Primary bank used in last 12 months, college students by region, November 2012 – December 2013
Credit card issuer
Figure 92: Credit card issuer used in last 12 months, college students by gender, November 2012 – December 2013
Figure 93: Credit card issuer used in last 12 months, college students by age, November 2012 – December 2013
Figure 94: Credit card issuer used in last 12 months, college students by race/Hispanic origin, November 2012 – December 2013
Type of credit and prepaid card owned
Figure 95: Type of credit card owned, college students by age and gender, November 2012 – December 2013
Prepaid cards
Figure 96: Brand of prepaid card used, college students by age, November 2012 – December 2013
Credit monitoring services
Figure 97: Use of credit monitoring service, college students by age, November 2012 – December 2013

College Students – Attitudes toward Finance and Investments

Key points
Older male students least likely to trust banks
Figure 98: Attitudes about finances, college students by age and gender, November 2012 – December 2013
Figure 99: Attitudes about finances, college students by race/Hispanic origin, November 2012 – December 2013

Appendix – Other Useful Consumer Tables

Teens and young adults – ownership of financial products
Figure 100: Types of financial accounts and products owned – in own name, by college student status, February 2014
Figure 101: Types of financial accounts and products owned – joint account with parents, by educational goal, February 2014
Figure 102: Types of financial accounts and products owned – joint account with parents, by college student status, February 2014
Teens and young adults – banking channels used
Figure 103: Channels used for checking account activities, by household income, February 2014
Figure 104: Channels used for checking account activities, by race/Hispanic origin, February 2014
Figure 105: Channels used for checking account activities, by college student status, February 2014
Figure 106: Channels used for savings account activities, by race/Hispanic origin, February 2014
Figure 107: Channels used for savings activities, by educational goal, February 2014
Figure 108: Channels used for savings account activities, by college student status, February 2014
Figure 109: Channels used for credit card account activities, by gender, February 2014
Figure 110: Channels used for credit card account actiities, by educational goal, February 2014
Figure 111: Channels used for credit card account activities, by college student status, February 2014
Figure 112: Channels used for credit card account activities, by educational goal, February 2014
Figure 113: Channels used for credit card account activities, by household income, February 2014
Figure 114: Channels used for credit card account activities, by college student status, February 2014
Teens and young adults - attitudes toward finances and financial education
Figure 115: Attitudes toward finances and financial education, by household income, February 2014
Figure 116: Attitudes toward finances and financial education, by educational goal, February 2014
Figure 117: Attitudes toward finances and financial education, by college student status, February 2014
Teens and young adults – primary expenditure categories
Figure 118: Primary expenditure categories, by household income, February 2014
Figure 119: Primary expenditure categories, by employment, February 2014
Figure 120: Primary expenditure categories, by educational goal, February 2014
Figure 121: Primary expenditure categories, by college student status, February 2014
Figure 122: Primary sources of funds, by household income, February 2014
Figure 123: Primary sources of funds, by race/Hispanic origin, February 2014
Figure 124: Primary sources of funds, by employment, February 2014
Figure 125: Primary sources of funds, by college student status, February 2014
Figure 126: Primary sources of funds, by educational goal, February 2014
Teens and young adults – attitudes toward saving and spending
Figure 127: Attitudes toward saving and spending, by gender, February 2014
Figure 128: Attitudes toward saving and spending, ages 16-22, February 2014
Figure 129: Attitudes toward saving and spending, by household income, February 2014
Figure 130: Attitudes toward saving and spending, by college student status, February 2014
Teens and young adults – payment methods for everyday expenses
Figure 131: Payment method used to pay rent/mortgage, by gender, February 2014
Figure 132: Payment method used to pay rent/mortgage, by household income, February 2014
Figure 133: Payment method used to pay rent/mortgage, by race/Hispanic origin, February 2014
Figure 134: Payment method used to pay rent/mortgage, by educational goal, February 2014
Figure 135: Payment method used to pay rent/mortgage, by college student status, February 2014
Figure 136: Payment method used to pay for auto related expenditures, by gender, February 2014
Figure 137: Payment method used to pay for auto related expenditures, by household income, February 2014
Figure 138: Payment method used to pay for auto related expenditures, by race/Hispanic origin, February 2014
Figure 139: Payment method used to pay for auto related expenditures, by educational goals, February 2014
Figure 140: Payment method used to pay for auto related expenditures, by college student status, February 2014
Figure 141: Payment method used to pay for personal care, by gender, February 2014
Figure 142: Payment method used to pay for personal care, by household income, February 2014
Figure 143: Payment method used to pay for personal care, by race/Hispanic origin, February 2014
Figure 144: Payment method used to pay for personal care, by educational goal, February 2014
Figure 145: Payment method used to pay for personal care, by college student status, February 2014
Figure 146: Payment method used to pay for entertainment, by gender, February 2014
Figure 147: Payment method used to pay for entertainment, by household income, February 2014
Figure 148: Payment method used to pay for entertainment, by race/Hispanic origin, February 2014
Figure 149: Payment method used to pay for entertainment, by educational goal, February 2014
Figure 150: Payment method used to pay for entertainment, by college student status, February 2014
Figure 151: Payment method used for dining out, by gender, February 2014
Figure 152: Payment method used for dining out, by household income, February 2014
Figure 153: Payment method used for dining out, by race/Hispanic origin, February 2014
Figure 154: Payment method used for dining out, by educational goal, February 2014
Figure 155: Payment method used for dining out, by college student status, February 2014
Figure 156: Payment method used for ordering in food, by gender, February 2014
Figure 157: Payment method used for public transportation, by gender, February 2014
Figure 158: Payment method used for public transportation, by household income, February 2014
Figure 159: Payment method used for public transportation, by educational status, February 2014
Figure 160: Payment method used for public transportation, by race/Hispanic origin, February 2014
Figure 161: Payment method used for public transportation, by college student status, February 2014
Figure 162: Payment method used for groceries, by household income, February 2014
Figure 163: Payment method used for groceries, by race/Hispanic origin, February 2014
Figure 164: Payment method used for groceries, by employment, February 2014
Figure 165: Payment method used for mobile phone, by gender, February 2014
Figure 166: Payment method used for tuition, by gender, February 2014
Figure 167: Payment method used for tuition, by household income, February 2014
Figure 168: Payment method used for tuition, by race/Hispanic origin, February 2014
Figure 169: Payment method used for tuition, by college student status, February 2014
Figure 170: Payment method used for housing, by gender, February 2014
Figure 171: Payment method used for housing, by household income, February 2014
Figure 172: Payment method used for housing, by race/Hispanic origin, February 2014
Figure 173: Payment method used for housing, by employment, February 2014
Figure 174: Payment method used for housing, by educational status, February 2014
Figure 175: Payment method used for housing, by college student status, February 2014
Figure 176: Payment method used for on-campus meal plan, by gender, February 2014
Figure 177: Payment method used for on-campus meal plan, by age, February 2014
Figure 178: Payment method used for on-campus meal plan, by household income, February 2014
Figure 179: Payment method used for on-campus meal plan, by race/Hispanic origin, February 2014
Figure 180: Payment method used for on-campus meal plan, by educational status, February 2014
Figure 181: Payment method used for on-campus meal plan, by college student status, February 2014
Figure 182: Payment method used for books, by gender, February 2014
Figure 183: Payment method used for books, by household income, February 2014
Figure 184: Payment method used for books, by race/Hispanic origin, February 2014
Figure 185: Payment method used for books, by employment, February 2014
Figure 186: Payment method used for books, by college student status, February 2014

Appendix – Trade Associations

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