Young Adult Credit Knowledge
May 9, 2008
According to a recent survey conducted by JumpStart Coalition, high school students do not have a great understanding of personal finance or credit card usage issues.
Based on the results of the latest Jump$tart Coalition student survey: High school seniors were able to only correctly answer less than half of the survey questions on personal finance issues. This is a decrease from the 2006 poll.
Jump$tart is a national coalition of organizations dedicated to improving the financial literacy of young people. According to a press release from the Federal Reserve, the survey demonstrates what seniors in high school know about personal finance basics.
“The financial preparedness of our nation’s youth is essential to their well-being and of vital importance to our economic future,”
Fed Chairman Ben Bernanke said in a speech during a recent press conference. “Choosing a credit card, saving for retirement or for a child’s education, or buying a home now requires more financial savvy than ever before, he continued. “Financial literacy and consumer education—coupled with robust consumer protection—makes the financial marketplace effective and efficient, and better equips consumers to make tough yet smart financial decisions.”
High school seniors picked the correct answers to survey questions an average 47.5 percent, down from a score of 52.4 percent answers correctly chosen by the senior class of 2006. Of particular concern was the seemingly lack of knowledge on credit card issues such as interest rate issues and possible penalties when cards are not paid on time.