Jump$tart, a non-profit organization focused on providing financial smarts for students,
recently released the results of their nationwide biennial survey of high school
seniors. This past December and January, the survey was given to 12th graders in
305 schools across the country through a written examination in mostly English and
Social Studies classes. Jump$tart avoided finance or management classes in an effort
to obtain results of general financial literacy rather than what students may have
learned in a specific financial management course.
High school seniors surveyed
about financial literacy
The survey consisted of fifty-one questions covering a wide variety of everyday
financial scenarios such as credit, credit cards, insurance, saving, taxes and credit
reports. Most all of the questions on the survey would be potentially applicable
to these young adults in the next five to six years after high school graduation
- whether the student intended to immediately enter the workforce or continue their
education.
The results from the survey seem to suggest that while there is increased awareness
of the importance of financial literacy and education, especially as students leave
the relatively safe environment of their parents’ homes and high school, there
is still work to be done. The average score for individuals taking the survey this
year was 52.4 percent, up a tenth of a percent from the last survey in 2003-04.
Such a mid-range average score indicates that there are obviously some children
being left behind in their ability to make real life financial decisions that could
impact their financial futures for years to come.
While only 22.7 percent of those surveyed knew that the interest earned through
a savings account could be taxable if the owner’s income was high enough,
or 15.1 percent knew that if your credit card is lost or stolen, according to Federal
law the maximum amount that you can be forced to pay is $50, there was some good
news. 66.8 percent of those surveyed knew that getting cash from most ATMs would
cost you money in the form of a fee, 70.6 percent knew that paying the minimum amount
on a credit card bill would result in the greatest dollar amount in finances charges
per year, and just over half knew you can check your credit record for free once
a year.
Ineffective financial decisions
could leave an impact for years
With everything they didn’t know it is somewhat comforting to note that 67.1
percent knew that a responsible credit counseling organization could work with those
they owed to set up a payment schedule to assist them in repaying their debts. From
the looks of it this information may become even more important for them down the
road.
So, do you wonder how your survey answers would have compared to this year’s
high school seniors? Take the abbreviated survey below and find out. (Answers are
provided at the end of the survey).