Thursday, April 06, 2006

USATODAY.com - U.S. teenagers lack financial literacy

USATODAY.com - U.S. teenagers lack financial literacy:
"U.S. teenagers are making little headway when it comes to financial literacy, a survey out Wednesday shows.

High school seniors on average answered 52.4% of a 30-question financial survey correctly. That was up from 52.3% when the survey was last conducted two years ago but down from 57% in 1997, the first year for the survey, according to the Jump$tart Coalition for Personal Financial Literacy.
'Financial literacy is still a very significant problem. It doesn't seem to be getting any better,' says Lewis Mandell, a professor at SUNY Buffalo School of Management who oversaw the survey, which was conducted in December and January. It includes topics such as investing and managing personal finances."
BTW they have sample questions on the left side of the article.

Mmm, we should be able to help solve this. What do you think? Maybe start volunteering once a month at local High Schools? Sounds like a GREAT service opportunity for finance clubs!

5 comments:

Flexo said...

I found it interesting that students' performance in the quiz declined if they participated in a money management class beforehand, but students who participated in a stock market game performed better on the quiz.

percy chan said...

I run a seminar and lecture series on Business Topics. I "teach" this subject on money now as a foundation course because I have found that most people, not only high school kids have the same problems. There are 2 things that our parents never taught us. (1) sex (2) money.
A recent survey by a leading newspaper in the UK concluded that about the half of the adult poulation suffer acute money problems.
There is certainly a need to be educated.

Miss Money said...

If I only knew now what I knew then……. Know one ever told me that starting at age 25 if I saved $65 a month by age 65 I’d have a million dollars. And know one ever really taught me the importance or the principle of savings. Really, if I had to choose what my parents taught me about money—how to save it, how to make it or how to spend it—I’d probably have to say, what they taught me the most is how to spend money.

For many preteens and teens today, although bright, educated and smart, they fail when it comes to basic, simple money management skills. 4 out of 5 teenagers can not tell you what goes on inside a bank. And 73% didn’t know that a stock would yield more over time than a savings account, according to Jump $tart. Why? Because finance and money management are not being taught in schools or is just now starting to be taught in certain areas of the country in high schools. Plus, high schools are experiencing the largest dropout rate in their history—1 dropout every 7 seconds or 1 million drop outs in 2005. Plus, a minimum wage increase has just been turned down and wage stagnation is at its worst in 30 years.

If you don’t take the time to teach your children the principles of money NO ONE ELSE WILL! MoneyMoney101 for preteens and teens is coming! Stay tuned.

mjh said...

My son is interested in starting a Finance Club at his high school. Can anyone recommend a good resource for getting started? Thanks, MJ

mjh said...

My son is in high school and would like to start a Finance Club. Can anyone point us to a good resource for a "How to" on starting a club of this kind? Thanks! MHenry