FAIRFAX, Va.—A new survey shows that teens are confident about their money management skills, but are worried about their financial futures.
Apple FCU recently surveyed 4,240 high school students in Northern Virginia and found that financial education programs, combined with young adults taking interest in money management, have teens prepared to manage their own finances.
“We were buoyed by how much kids understand about money management,” Robert Sowell, vice president of Community Relations at Apple told BusinessWire. “What is concerning is that they are already worried by adult issues as they look ahead toward their futures.”
The majority expressed worries about paying for college, finding a job and being able to afford living on their own. In fact, less than one in 10 said they were not worried about any money issues.
Seventy-percent of students in the survey said they gained money management skills by taking a personal finance class at school. They also said they learned from their parents (65%), and by having their own personal savings or checking account (57%).
Top areas of confidence include creating a budget, knowing how to avoid credit card debt, understanding the benefits of earning interest by investing their money, and understanding different options for saving and investing money, BusinessWire reported.
Seven-in-10 indicate that they could “create a budget” and “stick to a budget.” Seventy percent expressed confidence that “I know how to avoid credit card debt” and fewer than 8% agreed that “It’s OK to buy something with a credit card if you won’t have the money to pay for it at the end of the month.” However, 20% of students did not claim to “understand the difference between a credit card and a debit card.” In addition, one-fourth of students surveyed belied a lack of understanding of the true cost of buying on credit. Also of concern, 35% disagreed that “carrying a credit card balance month after month could affect my ability to get a car loan or mortgage.”
Nearly 70% understand the benefits of earning interest by investing money and nearly 70% understand options for saving and investing money. Yet 42% say they worry about “knowing how to invest my money.” Seventy five percent did not agree that saving for retirement could wait until they were in their 40s or 50s, which left 25% of kids who thought waiting was OK or didn’t have an opinion