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Economic Development and Quality of Life for People and Communities
High School Financial Planning Program
Issue
Studies concerned with the financial knowledge of teens have reported
that teenagers are progressing into adulthood without the basic skills
and knowledge it takes to make educated financial decisions once they
are on their own. Additionally, the spending power of teens continues
to increase. According to a 1999 survey by Teenage Research Unlimited
(TRU), Northbrook, IL, teens spent $153 billion of their own and family
money, an increase of 8.5 percent over the previous year.
What has been done?
Since 1991 the University of Arizona Cooperative Extension in partnership
with the National Endowment for Financial Education (NEFE), and local
teachers, have educated high school students about basic money management
and financial planning concepts. A new national partnership was formed
with the Credit Union National Association (CUNA) that will provide
additional support for expansion of the program through training models
for credits union professionals interested in working with high schools
in their local communities.
Impact
Approximately 50,235 Arizona high school students and other youth have
increased their knowledge of money management skills since this program
began. As a result of participating in the NEFE High School Financial
Planing Program (HSFPP), 86 percent of students demonstrated an increase
in financial knowledge or behavior when dealing with money. Other identified
changes as a result of participation in the HSFPP are:
- 47 percent know more about cost of credit
- 27 percent compare prices when shopping
- 31 percent used a spending plan or budget
- 30 percent repaid their debts
- 35 percent began tracking their expenses
- 29 percent of teens started saving
- 36 percent wrote down money management goals
- 45 percent knew that questions to ask when shopping for auto insurance
Establishing a savings account was identified by the greatest number
of students when asked about the most important thing they did as a
result of participating in the HSFPP. This finding is particularly noteworthy
since a recent study from the National Bureau of Economic Research indicates
that if you teach a teen to save, he or she will save more as an adult.
"I compare prices when I shop. I know more about credit an insurance,
and I feel more confident about money."
—participant
"I've been saving it up and using it when I really need it and
not spending it on impulses. I put it in the bank. I have time to think
about each thing I want to purchase."
—participant
Funding
University of Arizona Cooperative Extension
National Endowment for Financial Education (NEFE)
Contact
Janice Shelton, agent, Home Economics
La Paz County Extension P.O. Box BL
The University of Arizona
Parker AZ 85344-4064
Tel: (520) 669-9843, FAX: (520) 669-9763
Email: shelton@ag.arizona.edu
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