Improving Teens' Financial Literacy

Parents Teens and Money: Improving Teens’ Financial Literacy (NAPSA)—Credit scores loans interest payments and budgets.... Most adults are familiar with these terms and what they mean. However unless their parents have taken the time to discuss these key financial topics many teens may not be as familiar. Teaching teens about finances and how to make informed and responsible financial decisions is one of the most valuable lessons parents can provide—and an increasing number of moms and dads are taking steps to ensure that young adults develop financial discipline. Last year’s study of high school seniors conducted by the Jump$tart Coalition found they were able to correctly answer less than half of the financial literacy questions posed to them— a failing grade. This means that many young adults do not have the financial survival skills they need to succeed. A new online guide “Parents Teens and Money: A Clear and Simple Guide to Discussing Financial Responsibility” offers interac- tive tools and resources to help parents engage their teens and guide discussions on a broad range of financial topics. The comprehensive guide published by Chase Card Services and College Parents of America is available at www.chaseclearandsimple.com and www.collegeparents.org. Below are some important financial considerations all teens should keep in mind whether they are entering college or the workforce: What important questions to ask before signing up for a credit card. How interest rates fees and penalties impact the cost of using credit cards. How to identify the main differences between credit and debit cards. What other types of loans there are and how to compare terms to get the best deal. How to make and stick to a budget. How to spot—and prevent— identity theft. Using resources such as the “Parents Teens and Money” guide to help facilitate discussion is the first step in ensuring that teens understand finances and are able to make smart and responsible decisions. “We hear from the parents we serve as well as the colleges and universities we work with that financial literacy is an impor- tant issue and that there’s a need for better resources to create a good foundation for young adults” said James A. Boyle president College Parents of America. “By sharing this guide with our members and other organizations we hope to empowertoday’s teens to be successful and responsible adults.”