American teens expect to earn $145,500 a year when they grow up, according to a Teens & Money survey released this month. “Interestingly, boys expect to earn an average $173,000 a year and girls $114,200,” writes Michelle Singletary in a column urging parents to teach their kids to manage money and understand credit.
The fact is, only about 14 percent of U.S. households have incomes between $100,000 and $200,000, reports the U.S. Census Bureau. The median household income in the United States is actually $46,326, according to the latest Census figures.
Most teens say they plan to go to college, but that won’t be enough to meet their financial expectations.
Adults with a bachelor’s degree earned an average of $54,689 in 2005. Take out taxes and add in student loan and credit card debt and our young people have got a lot less to live off than they’re expecting.
While two-thirds say they’re prepared to handle their own finances when they leave home, most don’t know the basics of budgeting or credit.
Via Michael Blowhard.
Downtown College Prep, the charter high school I wrote about in Our School, lists teaching financial responsibility as one of the goals of the counselor it hired to help graduates navigate college. Most students come from Mexican immigrant families. They don’t think the world owes them a living, but they need to learn how to use a credit card, balance a checking account and make sure they’ve got enough for the next tuition payment.