The effect of the rise in oil prices is being felt by the younger generation as an increasing number of teens in America are relying on their credit cards to pay for gasoline, according to a survey conducted by Allstate Foundation and Junior Achievement.

Credit card spending on luxury items has declined, with 68.2 per cent of teenagers surveyed now using their credit cards for gas, reports Investment News.

While a large proportion of teens were responsible for managing their own financial situation, 11.8 per cent relied on their parents to keep them free from financial difficulties.

Jack Kosakowski, president of Junior Achievement USA, commented: "It is apparent from these poll results that rising gas prices are impacting teens as much as they are their parents."

"The question is, are the teens paying off these cards or are they passing the debt on to their parents?" he added.

In recent months oil prices have reached a record high, rising by around 40 per cent to over $133 a barrel.

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