Transportation accounts for 4.6 percent of teen spending
Ride-sharing providing more teens with the freedom that a car used to represent
NEW YORK, Nov. 21, 2017 /PRNewswire/ — American teens benefit from a lot of free transportation, including school buses, rides from their parents, riding their bike and walking. But getting around still manages to capture 4.6 percent of all teen spending.
In a sign that teens are adopting ride-sharing services, Uber and Lyft combined to capture 84 percent of teen spending on taxi services. The figures represent aggregate spending of all Current debit card customers aged 13 to 18-years-old in October, 2017. Current provides a debit card and companion smartphone app for teens (and parents) that makes managing money easier for families.
The costs of car ownership still put a big dent in teenage wallets. Gasoline and parking accounts for 78.5 percent of teenage spending on transportation, compared to 16.9 percent for taxi services, and 4.6 percent for public transportation.
“The adoption of ride sharing services by teens may surprise some adults, but is consistent with a generation that relies on their smartphones to accomplish everyday tasks,” said Stuart Sopp, CEO and founder of Current. “By using on-demand services, teens are shifting their disposable income away from transportation and into experiences and retail goods.”
In November, Current introduced a feature that allows teens to set and see progress towards a savings goal. In a positive sign for the automotive industry, at 9 percent, saving for a car was the third most popular goal, below saving for a rainy day (23%) and holiday gifting (13%), and just ahead of video games (8%), clothes (7%) and travel (6%).
The Current solution includes a Visa-branded debit card and companion smartphone app made for teens. The app, available on iOS and Android, allows teens to track their balance, share money with friends, and encourages saving and charitable donations.