Financial Literacy: Facts For Parents
Did You Know?
Financial literacy is a big problem nationally.
Americans' understanding of how to manage money is decreasing, not increasing. According to BusinessWeek.com, the amount that Americans owe on loans for houses, cars, credit cards, and other purchases adds up to nearly 100% of their annual income after taxes, up from 75% in 1992. Another study found that 20 percent of families earning less than $50,000 a year spend nearly half of their income on debt payments.
Sources: Business Week Online 8/3/2002, Credit Union National Associates 2002.
Most teens handle money poorly.
In a survey by Teenage Research Unlimited, teens said they spend 98% of their money instead of saving it. Of the 4,000 students who took the Jump$tart personal finance survey in 2002, 68.1% received failing scores.
Sources: Teenage Research Unlimited 2001, and Jump$tart Coalition 2002, reported on http://www.yacenter.org.
Most teens know very little about finances.
In a survey, only 21% of students aged 16 to 22 said they have taken a personal finance course in school. Only 26% of 13- to 21-year-olds said their parents taught them how to manage money. And only 7% of parents said their children have a good understanding of financial matters.
Source: Youth and Money Survey, ASEC, 1999 and/or 2001, reported on http://www.yacenter.org.
Learning the true cost of life after graduation may surprise your child.
Many young people assume that they will be able to make it and lead a comfortable life after graduation - until someone tells them the hard numbers.
For a "What It Costs To Live" sheet you can discuss with your child, go to
http://www.mbrt.org/speak/tools/CostToLiveSheet.pdf.
For more helpful information for families on school topics, visit MBRT's Parents Count web site at www.mbrt.org/parents/ or call 410/727-0448.