Focus Group Results Show Young Adults Know It Is Important To Save But No One Is Showing Them How

Top ten findings from first-time youth workers about spending and saving

Last week, America Saves released a report of the top ten findings from focus groups with first-time youth workers regarding their saving and spending. Many of these youth completed the America Saves First-Time Worker program as part of their summer job. The America Saves initiative partners with Summer Youth Employment Programs (SYEP) to encourage young workers to set up direct deposit and save a portion of their paycheck.

Youth were recruited to participate in focus groups conducted by the Alan Newman Research Group before their employment ended with their SYEP. Two sets of focus groups were held in three cities with a total of fifty-five youth aged 16 – 19 from Miami, Chicago, and Washington, DC. They were asked questions about their thoughts, experiences, and behavior regarding saving, spending, and borrowing. In Chicago and DC, youth employees lived in low-income census tracts or qualified for school free lunch programs. In Miami, youth were recruited from two high schools in low- and moderate-income neighborhoods.

The results of these focus groups provide insights in to how this particular group of young workers perceives spending and saving money. After careful review of the information, America Saves compiled the top 10 insights about what these low- and moderate-income youth think about saving money.

  1. They know it’s important to save, but don’t know how.
  2. They know it’s important to start saving early and that they can start with small savings. 
  3. While aware of savings best practices, many had difficulty actually saving money and/or meeting their savings goals.
  4. They are familiar with direct deposit but do not view it as a savings tool.
  5. The most successful savers had two accounts – one for spending and one for saving.
  6. They have contradicting feelings about prepaid cards.
  7. They understand that spending is about temptation, so they develop strategies to avoid temptation.
  8. They understand that living within their means and saving is the way to accumulate wealth.
  9. They feel proud earning money.
  10. They don’t like the idea of borrowing money.

“While many of the participants knew that saving money was important and had positive benefits, many were unable to save,” said George Barany, America Saves Financial Education Director. “To help these young workers save effectively, America Saves is working with SYEP’s to provide the same opportunity that adults have to save successfully – utilizing direct deposit to automatically deposit money into a savings account.”

Download the full report: http://www.americasaves.org/images/ftw/FTW_Findings-2014.pdf

America Saves, a campaign managed by the nonprofit Consumer Federation of America, seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. The research-based campaign uses the principles of behavioral economics and social marketing to change behavior. Non‐profit, government, and corporate groups participate in America Saves nationally and through local, regional, and statewide campaigns around the country. America Saves encourages individuals and families to take the America Saves pledge and organizations to promote savings year-round and during America Saves Week. Learn more at americasaves.org and americasavesweek.org.

Contact: Katie Bryan, 202-939-1018 

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • Written by Tammy G. Bruzon | January 16, 2017

    Do you need to file a tax return in 2017? This #BetterMoneyHabits video can help you find out: http://bit.ly/2hU8smo

Saver Stories View all »

Inspired to Build Savings By Starting Small

Written by Great Lakes Michigan Saves | April 19, 2016

With little-to-no money in the bank and living on a limited income with her adult daughter, Sharon wasn’t sure if building up savings for her future was even possible. “At my age, to put debts behind me would be a relief,” she said, but she wasn’t quite sure how to even get started with a savings plan. That all changed when Sharon attended the Great Lakes Michigan Saves Pay Yourself First Saver’s Summit during America Saves Week.

Read more...

Transforming “I Can’t Save” to “I Will Save”

Written by Guest Blogger | January 13, 2016

You will not believe what it took to completely change my life. About three years ago, the HR Administrator of the corporation where I worked (as a temp with no benefits) forwarded an email to me. Fifteen seconds. One small act of kindness. That's it - that's all it took!

Read more...

Taking Steps Toward Financial Fitness

Written by Tammy G. Bruzon | November 7, 2014

Nicky Vasquez learned about Virginia Saves when she attended her first class with Bank On Virginia Beach. The instructor shared how important it was to have a written savings goal, and the entire class joined Virginia Saves as the first step toward financial fitness.

Read more...

Receive Updates

Sign up for Texts

Written by Tammy G. Bruzon | July 15, 2014

Sign Up

Sign up for Emails

Written by Super User | September 16, 2013

Get Emails

Take the Pledge

Written by Super User | September 16, 2013

Start Saving