National and Local Poll: Junior Achievement-Allstate Foundation Survey Shows Too Many Teens Fall Short in Understanding Money Basics as U.S. Faces Economic Crossroads

HOUSTON, April 6 /PRNewswire-USNewswire/ -- As economists, elected officials and the American public ponder how to strengthen the U.S. economy by rebalancing the nation's spending and consumption with savings and investment, an alarming majority of U.S. teens say they lack the knowledge to understand and effectively reconcile the two, according to the eleventh annual "Teens and Personal Finance Survey" conducted by Junior Achievement (JA) and The Allstate Foundation.

Nearly half of the 1,000 U.S. teens surveyed (45 percent) say they are unsure about how to effectively invest their money, and nearly a quarter of teens (22 percent) said they do not budget their money. In a locally administered survey which mirrored the national survey, 43 percent of Houston teens said they felt unsure about how to invest, and 30 percent said they do not budget.

While many teens predict being as well-off as or better off than their parents (86 percent nationally compared to 67 percent in Houston), teens' lack of basic money management skills may stand in the way. The survey found that 54 percent of teens say they are unsure about how to effectively use credit, yet 74 percent think they should get a credit card by age 21. This striking lack of knowledge coupled with a sense of financial entitlement could exacerbate future national financial woes. In Houston, 42 percent said they should get a credit card by age 21, and 55 percent said they are unsure about how to effectively use credit. These data points underscore the need to teach the financial skills necessary to empower teens to demonstrate fiscal fitness.  

Fortunately, many Houston teens do recognize the need to learn to manage their money early on, with 73 percent responding that the best time to learn money management skills is during grades K-12. In partnership with the business community, educators and volunteers, JA offers a broad range of age-appropriate financial literacy curricula, from kindergarten through grade 12. In Houston, JA of Southeast Texas reaches 209,000 K-12 students annually.

Junior Achievement programs help teens to not only recognize what lessons and skills they need to learn at an early age, but they also teach teens how to become fiscally fit. For a full survey abstract, contact Kevin R. Hattery at [email protected] visit: http://houston.ja.org.

SOURCE Junior Achievement of Southeast Texas