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Teens, College Students and Finance - US - May 2014

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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