1 educating teens about money—using education to increase sustainable consumption karen varcoe,...
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Educating Teens About Money—Using Education to Increase Sustainable
Consumption
Karen Varcoe, Ph.D.University of California
Brenda Roche, M.S., R.D.University of California, Los Angeles County
Teens?
Consumers of today and tomorrow
Decisions will impact sustainability of resources—human, natural, and man-made
Teens often lack the decision-making skills to make informed choices—choices that will promote sustainable consumption
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U.S. Teens & Money Teens spend
98% of what they earn $74 weekly (their own & others’ $) $200 billon yearly $32 billion in food purchases
Teens & credit 10.3% own credit cards
• 15.7% make the minimum payment
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U.S.Teens are not financially literate
Jump$tart Surveys
1997 = 57.3%
2000 = 51.9%
2002 = 50.2%
2004 = 52.3%
2006 = 52.4%
2008 = 48.3%
The Research
Schwab – want to learn about money matters “so they can pay bills”
Networks Financial Institute – financial skills are lacking among young people
Harris Interactive – 4 x more likely to look for someone in Facebook than search for a lower-rate credit card
Teens Worry About EconomyCheap has become the new thrifty and “savvy”
53% spending less 51% talking to friends 29% anxious 29% financial challenges
distracting and troublesome
Is This a Teachable Moment?
Need information on what teens want to learn and how to engage
Survey in 1998 (N = 323)
Repeated in 2008 (N = 558)
Purpose of Research
Ascertain what teens want to know about money
Find out how what teens “want to know” differs from what adults “think they should know”
Identify changes from 1998 to 2008
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Method
Data collected from: 1998 2008
Juvenile Hall/Probation 22% 28%
Migrant Ed 12 8
Pregnant & Parenting 24 14
Public High Schools 23 31
Youth Groups 19 14
Demographics
Gender
Male 38 40
Female 62 60
Grade
7th & 8th 10 10
9th & 10th 27 22
11th & 12th 60 56
Not in school 2 12
Ethnic Group
African-American 14 7
Caucasian 18 31
Latino/Hispanic 48 55
Asian/Other 21 10
1998 2008
Why Is Money Important to You?
1998 2008
Buy things I need 64% 76%***
Gives independence 16 31 ***
Do things with my friends 25 33 *
Buy things I want 37 32 ns
Save for future purchases 26 47***
Save for education 32 42 ns
Do You Currently Have A…
1998 2008
Savings account 38% 53% ***
Checking account 12 23 ***
Credit card 4 10 **
Debit card 6 19 ***
Investments (bonds, stocks) 9 11 ns
How Do You Get Your Money?
1998 2008
Allowance 23% 22% ns
Odd jobs 18 25 *
Gifts 14 15 ns
Regular job-full/part 26 31 ns
From parent 48 49 ns
How Much Income Do You Have Each Week?
1998 2008Less than $10 25% 18% **$11 - $25 27 24 **$26 - $50 16 19 **$51 - $100 16 17 **More than $100 16 22 **
What Adults Think Teens Need to Learn
Methods Similar survey as teens Work with teens Completed at the same time as the teen
survey Number of surveys
• 49 in 2008• 67 in 1998
Demographics of Adults
1998 2008 Males 28% 18% Females 72 82 African-American 12 2 Caucasian 42 46 Latino/Hispanic 33 31 Other/Asian 12 8
Satisfaction Summaryteens vs. adults
2008 Teens
• very satisfied with their money
• enough to cover needs & wants most of the time Adults
• Teens just satisfied with money
• Enough to cover needs & wants some of the time Overall—teens more positive in 2008 vs. 1998
What Makes Money Important 1998 2008
teens adults teens adults
Do things w/ friends 25% 58%*** 36% 51%*
Save—education 32 6*** 42*** 6***
Buy wants 37 66*** 32 94***
Save--future purchases 26 9*** 47 12***
Impress friends 3 17*** 2 23***
Buy needs 64 59 76 39***
Gives independence 16 38*** 31 43
Importance of $$ Summary
Teens Buy needs (1998 & 2008) Saving for future (2008) Saving for education (2008)
Adults 1998 & 2008
• Buy wants
How Satisfied are Teens with the Use of Their Money
1998 2008
Teens Just Satisfied Very Satisfied
Adults Just Satisfied Just Satisfied
Enough $$$ to Cover Needs
1998 2008
Teens Most of the time Most of the time
Adults Some of the time Some of the time
Significance = ***
Enough $$ to Cover Wants?
1998 2008
Teens Most or Some Most of the time
Adults*** Some or Never Some of the time
10 Top Topics of Interest--Teens 1998 2008teens adults teens adults
How to buy a car 66% 82* 72% 88%*
Insurance 45 43 56 57
Making $$ go farther 52 49* 57 41*
Easy ways to save 54 69** 51 71***
Talking w/family $$$ 46 52 52 69*
How to get credit 46 30* 47 35
Savings accounts 41 72*** 43 61*
Filing a tax return 39 69*** 43 63*
Saving for a home 29 14* 38 18***
Talking—not enough $ 42 58* 37 67***
10 Top Topics of Interest--Adults 1998 2008teens adults teens adults
How to buy a car 66% 82* 72% 88%*
Checking Accounts 32 66*** 28 78***
Bad credit 23 62*** 25 78***
Easy ways to save 54 69** 51 71***
Talking—not enough $ 42 58* 37 67***
What is credit 20 64*** 23 67***
Talking w/family $$$ 46 52 52 69*
Filing a tax return 39 69*** 43 63*
Savings accounts 41 72*** 43 61*
Insurance 45 43 56 57
Topics of InterestTeens & Adults Agree
Car buying Easy ways to save Filing a tax return Talking about when
there’s not enough $
$ Saving accounts Insurance
Teens Still Want to Learn About…
How to get credit? (still not interested in how to fix bad credit)
Talk with family about money Easy ways to save How to save for college How to buy a car
Teens Still Want to Learn About…
Opening/using a savings account
Making my money go farther
Setting financial goals
How to get the best buy
How to buy clothing/personal care items
How They Want to Learn
During school
Use magazines & newsletters
Using web
Is this a Teachable Moment?
Teens are concerned about the economy Teens financial literacy is low Teens have access to & spend a lot of money We know what teens want to learn We know how teens want to learn
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Money TalksThe Curriculum
Created to appeal to teenagers as it increases financial literacy.
Available free on internet at Moneytalks4teens.org
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Program Development
Topics of interest to teens
Design that appeals to teens
Use in school curriculum and other venues
Curriculum Features
Teens guides Leader’s guides Assessment tools Interactive website
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Teen Guides Focused on topics identified by teens
Car buying
Easy ways to save
Shopping tips
Credit
Banking
Goals
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Teen Guides Include…
Quizzes
Informational articles
Games
Important to be interactive
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Effectiveness of Teen Guides
Method Teen Guides were tested N=114, Students 13-20
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Procedure
Pre-tested on financial knowledge, habits & attitudes
Presented 4 teen guides
Money Personality, Savings Made Simple, Shopping Savvy, and Car Buying
Post-test given after teen guides taught
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Knowledge Score
19 true/false questions assessed knowledge
Before= 56% correct
After= 70% correct
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Perceived Financial Knowledge Increased
When it comes to handling my money, I know (everything, most of, some of, or a little about) what I need to know.
Significant increase—teens indicated they know more about handling money after Money Talks.
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Talking to Family About MoneyTalk to Family Scale
The importance of savings. Our family finances. How our family’s money should be spent. I talk to my family about my own use of money.
Teens were more likely to talk to their family about money after the Money Talks program. Females talked to families more than males.
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Savings Scale, cont.
Savings Scale—included 10 items such as…
I'm likely to save money by shopping for the best long-distance phone rates.
Saving money for the future is something I think about. When I get money, I save some of it no matter what. I do a good job of budgeting my money.
The amount saved increased significantly from pre to post
Females received significantly higher scores than males
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Shopping
Improved shopping behavior
compared prices
waited to buy items on sale
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Auto Insurance
Car Insurance Scale I'm likely to save money on my car insurance because
• I've taken Driver's Education classes.• I use my good grades• I don't have traffic tickets.• I'm added to my parents' policy rather than having
my own policy.
Significantly more knowledge about how to save money on car insurance from pre to post
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Banking Series117 Matched Pre/Post Tests
Knowledge Gain 19.1% increase- pre/post knowledge gain 13% increase- safest way to deposit cash 21% increase- knows rights if checks are stolen
Behavior Change 10.3% increase- save some $$ first 12% increase- would use pre-authorized payment
from an account» (all statistically significant)
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Credit Series89 Matched Pre/Post Tests
Knowledge Gain 12.3% increase- pre/post test knowledge gain 9% increase- paying bills on time most important to
establish credit 13.7% increase- know the cost of credit 17.7% increase- know what to ask when loan shopping
Behavior 12.9% increase- would select a credit card based on annual
fee, minimum payment & parent recommendation» (all statistically significant)
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Food Buying155 Matched Pre/Post Tests
Knowledge Gain 8.2% increase- from pre/post test 12% increase- best time to shop is after eating
Behavior Change 16.5% increase- would use unit pricing 7% increase- would use coupons at restaurants 6% decrease- buy snacks at the movies
(all statistically significant)
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Conclusions Teaching a financial curriculum can
improve financial literacy. Knowledge and appropriate behavior
increased. Attitudes about saving and saving
behavior improved. Better choices when shopping. More knowledge about what they
were buying.
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Issues of Importance Encourage talking about
money with families – especially for boys.
Emphasize value of savings accounts, especially with diverse ethnic teens.
What We Learned…
Information provided in Money Talks is relevant Website & interactive games are best Use items they are interested in (buying a car) to
develop financial education Teens seem to be getting message about savings Talking about money in the family is important to
teens Some teens just don’t want more information!
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Implications Need to teach financial
management to teens.
Knowledge level may be increased by talking with family.
Recognize importance of delivery method and content -- based on what and how teens want to learn.
Role of Educators
Teach teens – they may teach parents
Encourage – adult students to talk with children (don’t wait until teenagers)
Look for teachable moments – teachers & parents
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Available on the Web
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How Can This Curriculum Be Used?
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What’s Next?Continue to update website
New games
More FAQs
Next units
Living on My Own
Filing a Tax Return
Pilot testing
Working Series
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Contact Information
Karen Varcoe
University of California Cooperative Extension
135 C Highlander Hall
Riverside, CA 92521
951-827-5241
moneytalks4teens.org