One of the major objectives of the New York Credit Union Foundation (NYCUF) is promoting consumer financial education—in particular, youth financial education. The NYCUF currently has five exciting programs designed to help parents and educators in schools and community-based organizations improve the financial literacy of youth aged five and up throughout New York State.
Why does NYCUF consider youth financial education to be so important?
A Gallup poll shows:
- 76 percent of adults believe that providing financial guidance for children is a moral responsibility
However…
- 65 percent of adults have no idea how to do that
Additionally, according to the American Savings Education Council:
- 94 percent of students turn to their parents for financial information
- 61 percent of parents say that parents and schools should share the responsibility for children’s financial education
The Jump$tart Coalition for Financial Literacy’s—Making the Case for Financial Literacy, 2007, featured a collection of personal finance statistics gathered from other sources, including some alarming data:
- More than three-quarters of students (76%) wish they had more help preparing for their financial future (2007 survey by The Hartford Financial Services Group, Inc.).
- 49% of teens are eager to learn more about money management, but only 14% have taken a class on the topic (2006 annual back-to-school survey by Capital One).
- Some 70% of parents surveyed indicated their child had not received any formal training in money management, either in school or in the home. Additionally, 76% said that schools should be required to teach money management skills (July 2005 survey of 1,000 Parents of High School Students by Visa).
- Only one in five (20%) of college students claim to have been “very well prepared” for managing their money on campus (August 2006 poll commissioned by KeyBank and conducted by Harris Interactive).
Finally, in his preface to the 2007 report — Financial Literacy: Improving Education — produced by the Jump$tart Coalition for Financial Education, Senator Michael B. Enzi (R-WY) said:
“A life of financial success and security begins with a strong education. Every generation of Americans is introduced to the realities of spending, saving and finance at a younger age than the last. Yet for many years, our nation’s financial literacy has not kept pace. Many young people today take jobs with salaries far beyond what their parents earned. They also begin to live a lifestyle they believe fits that income, including cars, boats and luxury vacations. Many realize too late that what their parents have is the result of accumulation over years of hard work. The younger generation discovers their income cannot keep up with their spending, and they fall into debt. In the worst cases, their bad financial practices can eventually lead to broken marriages, families and futures.”
By assisting the next generation of consumers, NYCUF gives young people the knowledge they will need to begin making key financial decisions for themselves. And there is evidence that financial education is slowly beginning to pay dividends—for although 62% of teens that took the Jump$tart Coalition’s financial literacy assessment in 2006 failed, it was an improvement of +3.5% from the 65.5% who failed in 2004.
