Financial Education For Teenagers Are Best Investment For The Country
As they get older, a growing number of American teens own credit and debit cards, and the way they manage them has some people worried, according to a new survey.
For example, among 13-14-year-olds, only 5% reported having credit cards at age 17, the homeownership rate drops to just under 10%, then doubles again to almost 20% among teenagers aged 18 and over.
What many find alarming is that 15.7% of teens who own credit cards only make the minimum payment due rate, it would take a teenager over nine years to pay off a balance of $1,000 on a credit card with an annual interest rate of 18%.
These are some of the key findings from the Interprise™ Survey of Teenagers and Personal Finance conducted by JA Worldwide™ (Junior Achievement) and The Allstate Foundation in 2006.
Experts point out that the group of bankrupt filers are mostly people who are 25 or younger and this is a cause for concern and evidence that there is a need for financial education for teens.
The above survey results were announced by U.S. Treasury Deputy Assistant Secretary of Financial Education Dan Iannicola Jr. and JA Worldwide President and Chief Executive Officer David S. Chernow.
President and CEO of JA Worldwide, Chernow said, “Given the skyrocketing rate of bankruptcy and the staggering amount of debt for the average American family, it’s time for students to learn critical skills.
JA Worldwide is proud to join the Allstate Foundation in helping to educate our nation’s youth in this vital area.
Earlier this month, Treasury Secretary John Snow and U.S. Treasurer Ana Cabral announced the presentation of a new national financial literacy strategy titled Owning the Future.
JA Worldwide is included in the strategy as the primary provider of financial education for young people in grades K-12.
JA Worldwide is the world’s largest organization dedicated to educating young people about business, economics and entrepreneurship.
Today, it affects approximately 4 million students in the United States, as well as more than 3 million students worldwide.