Money management and budgeting loom as problem areas for teenagers, a new survey finds, as a majority think they should get credit cards by age 21, notes Grumpy Editor.
This indicates more information on consumer matters should be emphasized in schools and covered in newspaper business pages.
Chances are that a story on findings of a Junior Achievement and Allstate Foundation survey, released yesterday, does not appear in your local daily --- which illustrates the point.
The survey discovers 45 percent of U.S. teens say they are unsure about how to invest their money effectively and 22 percent admit they do not budget their money.
Among teens who do not manage their money, 42 percent aren't interested in money management, 37 percent don't know how to manage their finances and 32 percent think budgeting is for adults so it doesn't matter how they spend their money, uncovers the survey in a sampling of 1,000 teens.
What’s more, 54 percent of them say they are unsure about how to use credit effectively, yet 74 percent think they should get a credit card by age 21.
"Teens are admitting that they don't have knowledge of some of the basic money management skills around investing, budgeting and using credit. Despite the alarming numbers, teens overwhelmingly have high hopes for future financial stability," says Jack E. Kosakowski, president of Junior Achievement USA.
"The poll shows we need to do a better job of ensuring our youth are financially literate," he adds.
Vicky Dinges, assistant vice president, public social responsibility at Allstate, adds, "This volatile chapter in the nation's economy is bringing teens and parents together in agreement about at least one topic: there is a huge need in this country for financial literacy education.”
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