Are Parents Spending Enough Time Teaching Their Kids Enough About Money?

The 2006 annual back-to-school survey from Capital One found that: • 49% of teens are eager to learn more about money management, but only 14% have taken a class on the topic - 35% would like to learn from their parents. When asked about the topics they'd most like to learn about, teens express interest in checking accounts, budgeting, investing, saving, and financing for large purchases. Only 18% of parents are discussing back to school budgeting - a decline from the 24% who did so last year. 79% of parents see themselves as positive money role models for their kids, yet only a small percentage are taking advantage of day-to-day learning opportunities to arm their teens with practical money skills. Only 43% of parents have discussed the importance of needs versus wants, compared to 64% who did so last year; and a surprising 42% of parents have not taken any steps whatsoever to discuss financial basics.

• • •

[Capital One, Capital One's Annual Back To School Survey Finds Teens Eager To Learn about Money, But Parents Continue To Overlook Important Learning Opportunities, June 2006, http://phx.corporateir.net/phoenix.zhtml?c=70667&p=irol-newsArticle2&ID=882661&highlight]

Do Students Feel Prepared When They Get To Campus?
An August 2006 poll commissioned by KeyBank and conducted by Harris Interactive found that: • • • • Nearly one-third (32%) of college students, when thinking about their freshman year, admit that they were "not at all" or "not very well prepared" for managing their money on campus. Only one in five (20%) students claims to have been "very well prepared" for managing their money on campus. Three-quarters (75%) admit to having made mistakes with their money when they arrived on campus, and the biggest mistakes were overspending on food (21%), entertainment (19%) and putting too many purchases on their credit card (16%). When asked how closely they tracked where their money was being spent, nearly two in five (39%) claim they had tracked their spending "very closely" while fewer (14%) say they tracked their spending "not at all closely" or "not very closely." Common ways of supporting their spending habits and living expenses in college included getting a part time job (58%) or a full-time job (24%).

[KeyBank and Harris Interactive, One-Third of College Upperclassmen Admit Being Financially Unprepared as Freshmen, August 2006, http://www.harrisinteractive.com/news/allnewsbydate.asp?NewsID=1108]

How Do Many Parents Feel About Their Children’s Personal Finance Skills?
According to a July 2005 of High School students by Visa: • • • • • • Parents rank developing good personal financial skills and being able to handle their money (74%) ahead of both following the wrong crowd (58%) and drugs/alcohol use (56%) in terms of concerns parents have for their children’s futures. Only personal safety ranked higher (89%). 53% of parents agree that their child thinks “money grows on trees.” 76% of parents surveyed said their high school student does not have a budget. Over half of the parents surveyed, 63%, require their working teens to save at least some of what they earn. 88% of parents feel it’s important to monitor their child’s spending and guide their money use. Only 32% of parents said their family will have an itemized back-to-school budget.

Some 70% of parents surveyed said their child has not had any formal training in money management, either in school or outside the home. Additionally, 76% said that schools should be required to teach money management skills.

[Visa, Building Teen Personal Finance Skills a Top Worry for Parents, Visa Survey Finds, July 2005, http://www.practicalmoneyskills.com/english/presscenter/releases/080905.php, http://www.practicalmoneyskills.com/english/presscenter/releases/080905_results.php]

Are Americans Saving Too Little And Spending Too Much?
A November 2006 nationwide Pew Research Center telephone survey reveals: • Nearly two-thirds (63%) of Americans acknowledge they don’t save enough, and more than a third say that they often (11%) or sometimes (25%) spend more than they can afford. More than one-in-three (36%) Americans also say that they have at some point in their lives felt their financial situation was out of control. The U.S. Commerce Department’s Bureau of Economic Analysis has estimated that, since April of 2005, the American public has been spending more money than it has earned after taxes—an unprecedented development in the past half century.

[Pew Research Center, We Try Hard. We Fall Short. Americans Assess Their Saving Habits, November 2006, http://pewresearch.org/pubs/325/we-try-hard-we-fall-short-americans-assess-their-saving-habits]

How Pervasive Are Credit Cards On Campus?
A recent survey by Sallie Mae found • That more than half of college students accumulated more than $5,000 in credit card debt while in school. Of the 13,000 respondents, one-third piled on more than $10,000 in credit card debt while in school. Only 19 percent said they did not acquire any credit card debt while in school.

[Sallie Mae, Sallie Mae launches new ‘Be Debt Smart’ campaign to educate students, parents and graduates on managing debt and understanding credit, January 2007, http://www.salliemae.com/about/news_info/newsreleases/021407_bedebtsmart.htm]

Financial Survival Training
What Is DollarCamp?  DollarCamp is a seminar about money created specifically for students to explore the perils, pitfalls and  problems that financially cripple young adults.   What Topics Are Covered?  DollarCamp books and seminars discuss myths about money, credit cards, budgets, credit scores, and how to  manage debt.   What Does It Do?  The Financial Survival Pack (our special reports and illustrated Financial Survival Guide) illustrate key financial  concepts and shows how students can implement successful money habits immediately.   What Is The Purpose?  The goals of DollarCamp are to raise the level of financial awareness, to inspire young adults to take control  over their money, and to enable students to become more responsible for their financial choices and actions.   Why Does It Work?  The Financial Survival Pack was designed with input from parents, students, accountants, and certified  financial planners to specifically address the issues facing students. All of the concepts of the course are based  on real world examples, which students can relate to and will remember. 
  

  www.FinancialSurvivalPack.com 

 

 

Click Here For More Information About The Financial Survival Pack

www.DollarCampBooks.com  Copyright (©) DollarCamp 2007. All Rights Reserved.   

Parent & Student Money RESOURCES on Budgeting, Credit  Cards, Staying Out of Debt & Other Important Financial Topics: 
 

Stephen Epstein – The Student Money Expert – Radio Show  http://www.blogtalkradio.com/MoneyExpert    FREE Report With MORE Tips:  http://www.dollarcampsystem.com/free_report    DollarCamp Blog (Financial Survival Training) For Parents:   http://www.dollarcampsystem.com/parent_s_blog_   DollarCamp Blog For Students:     http://dollarcamp.wordpress.com/    DollarCamp Manifesto:    http://www.dollarcampsystem.com/dollarcamp_manifesto1    DollarCamp Radio & Videos:  http://www.dollarcampsystem.com/videos___radio    Financial Survival Networks:  http://www.financialsurvivalnetwork.com/    DollarCamp YouTube Channel  http://www.youtube.com/DollarCamp 

What Is DollarCamp?  DollarCamp is a financial literacy program about money created  specifically for students to explore the perils, pitfalls and problems  that financially cripple young adults.   What Topics Are Covered?  Our special reports and illustrated guides discuss myths about  money, credit cards, budgets, credit scores, and how to manage  debt.   What Does It Do?  Our materials illustrate key financial concepts and shows how  successful habits can be immediately implemented.   What Is The Purpose?  The goal for DollarCamp is to raise the level of financial awareness,  to inspire young adults to take control over their money, and to  enable students to become more responsible for their choices and  actions.   Why Does It Work?  The special reports, books, and workshop were designed with input  from parents, students, accountants, and certified financial planners  to specifically address the issues facing students. All of the concepts  of the course are based on real world examples, which students can  relate to and will remember.   

         

  www.DollarCampSystem.com   Copyright (©) DollarCamp 2008. All Rights Reserved.  Stephen Epstein – The Student Money Expert 

 

 

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.