Youth and Money

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Youth and Money

• 4-H Update
• October 3, 2000
• Dr. Joyce Cavanagh
• Consumer and Family Economics Specialist

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Teen Themes

• Optimism
• Grown up in prosperous economic times
• Confident consumers spending an average 82 per
  week
• (Teenage Research Unlimited)

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Teen Themes

• Techno Savvy
• More comfortable with technology than other age
  groups
• First toys involved computer chips or keyboards
• Household techies
• (Teenage Research Unlimited)

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Teen Themes

• Marketing Savvy
• Aware they are being targeted as a market
• Unaccepting of disingenuous or pandering messages
• Want to be seen as and accepted for being mature,
  young adults
• (Teenage Research Unlimited)

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Teen Themes

• Diversity
• Pride themselves on ability to move between peer
  groups and become friends with many types of
  teens
• Customization
• Desire the ability to make mass marketed products
  and services personalized
• One size does not fit all
• (Teenage Research Unlimited)

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Teen Themes

• Adept at Multi-tasking
• Seem to juggle many different things all at once
• Access info from variety of media
• (Teenage Research Unlimited)

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• 12 to 19 year old population continues to rise
• In 1999, 31.3 million U.S. teens
• By 2010, projected to reach 35 million
• (Teenage Research Unlimited, Zagorsky Ohio
  State University)

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Why Teach Financial Literacy?

• Children and teens earn, save, spend and borrow
  billions of dollars a year
• In 1999, teens spent 105 billion of their own
  money and 48 billion of family money
• Making more purchase decisions and at a younger
  age than previous generations
• (Teenage Research Unlimited)

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Where Do They Get It?

• 53 parents on an as needed basis
• 46 odd jobs
• 46 gifts
• 32 part-time jobs
• 26 regular allowance
• 13 full-time jobs
• (Teenage Research Unlimited)

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Money From Parents

• National Longitudinal Survey of Youth
• Median amount of allowance is 50/week
• 50 of kids 12 18 report receiving an allowance
  and regular handouts
• Amount increases as household income increases
• 30-40k 21/week
• gt 100k 175/week

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Making Money

• 1999 Youth and Money Survey
• Last summer
• 41 worked full-time (35 hrs)
• 22 20-35 hrs.
• 18 5-20 hrs.
• 13 lt 5 hrs.
• 6 did not work
• (American Savings Education Council)

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Making Money

• Earnings
• 9 0
• 36 lt2500
• 26 2500 4999
• 24 5000
• (American Savings Education Council)

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Saving and Spending

• 53 report making a monthly budget
• 49 report saving some of the money they receive
• 38 required by parents to save some
• Top reasons for saving
• Education
• Car-related expenses
• (1999 Youth and Money Survey- American Savings
  Education Council)

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Saving and Spending

• Top items and activities students are responsible
  for paying themselves
• Entertainment related 82
• Clothing 58
• Car or related expenses 50
• Vacations/trips w/friends 45
• School needs 31
• (1999 Youth and Money Survey American Savings
  Education Council)

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Why so Much ?

• Parents are wealthier trickle down effect
• Time strapped parents using as a substitute for
  time
• Guilt
• Todays kids have more needs
• (Teenage Research Unlimited, Zandl Group)

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Does Experience Success?

• Financial Literacy declining
• High school seniors in 2000 scored 51.9 on
  personal finance survey
• Decrease from 57.3 in 1997
• (Jumpstart Coalition)

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Educational Resources

• HES Resource Library
• outreach.missouri.edu/hesresource/resdb
• Variety of resources, curriculums, videos, books,
  etc. for checkout
• Contact Terry Gatewood at gatewoodm_at_missouri.edu

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Educational Resources

• Consumer Critter Crew
• 9 to 11 year olds
• 4-H Curriculum (Texas)
• High School Financial Planning Program
• 11th and 12th grades
• Basic financial management skills

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Resources on the Web

• Outreach and Extension
• Outreach.missouri.edu/ceupdate
• Jumpstart Coalition
• www.jumpstartcoalition.org
• National Endowment for Financial Education
• www.nefe.org
• www.nefe.org/amexeconfund/index.html

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Resources on the Web

• National Institute for Consumer Education
• www.nice.emich.edu
• University of Missouri-St. Louis, Center for
  Entrepreneurship and Economic Education
• www.umsl.edu/econed
• www.wisepockets.com

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Resources on the Web

• American Savings Education Council
• www.asec.org
• U.S. Treasury
• www.treas.gov/kids/

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