How Much Do Teens Earn and Spend
In 2024, U.S. teens aged 13 to 19 earned an average of 2,500 dollars per year from part-time jobs, allowances, and gig work, according to a 2024 survey by Piper Sandler. The same report found that teens spent most of their money on food, clothing, and digital entertainment, with online purchases accounting for over 40 percent of total spending. Many teens now use mobile payment apps and prepaid debit cards to manage their funds, reflecting a shift toward cashless transactions among younger consumers. For broader context on youth financial activity, see the 2024 Teen Spending Report by Piper Sandler Piper Sandler.
Digital spending on gaming, streaming, and social media platforms remains a major category for teen budgets. A 2024 analysis by Morning Consult showed that teens in the United States allocate roughly 30 percent of their discretionary income to digital content and in-app purchases. Social media influencers and short-form video platforms drive a significant share of this spending, as teens discover products through TikTok, Instagram, and YouTube. The Federal Trade Commission also notes that teen-targeted advertising on these platforms has grown, raising questions about financial literacy and consumer protection for minors Federal Trade Commission.
Teen Financial Products and Banking Trends
Banks and fintech companies have expanded teen-focused accounts, with over 7 million minors now holding some form of youth bank account in the United States as of 2024. Major providers include Greenlight, Current, and GoHenry, which offer prepaid debit cards, parental controls, and savings goals. These platforms often integrate budgeting tools and real-time spending notifications to help teens build basic financial skills. Greenlight, for example, reported over 5 million users in 2024 and emphasizes parental oversight and investment education for teens Greenlight.
Prepaid Cards vs. Traditional Accounts
Prepaid debit cards remain the most common financial product for teens because they do not require a traditional bank account or credit check. Unlike credit cards, these cards limit spending to the preloaded balance, reducing the risk of debt accumulation. However, many prepaid cards charge monthly fees, activation fees, and ATM withdrawal charges, which can add up for frequent users. The Consumer Financial Protection Bureau advises parents to compare fee structures and look for no-fee or low-fee options when selecting a teen card Consumer Financial Protection Bureau.
Financial Literacy and Education for Teens
Only 25 states in the U.S. require personal finance education as a condition of high school graduation as of 2024, according to the Council for Economic Education. Research shows that students who complete a personal finance course are more likely to save money, avoid high-cost debt, and understand basic investing concepts. Organizations such as Junior Achievement and the National Endowment for Financial Education provide free curricula and resources for schools and parents. These programs aim to close gaps in financial knowledge before teens enter adulthood and face real-world decisions about credit, taxes, and investing Council for Economic Education.
Teens are also increasingly exposed to investing concepts through fractional-share platforms and educational apps. Platforms like Fidelity and Robinhood allow minors with custodial accounts to invest in stocks and ETFs with small amounts of money. A 2024 survey by the National Association of Investors Corporation found that 18 percent of teens had made an investment using a custodial account, up from 12 percent in 2022. While early exposure can build long-term financial habits, regulators caution that these