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Teens Lack Basic Financial Literacy Skills
One in five U.S. Teens Lack Basic Financial Literacy Skills
6/8/2017 Post by: NEFE (National Endowment for Financial Education)
American Students Struggle to Demonstrate Financial Capability on International Stage
One in five U.S. teenagers (22 percent) lack basic financial literacy skills according to the Program for International Student Assessment (PISA) findings released last month. Among 15 participating countries and economies, U.S. 15-year-olds ranked 7th in aptitude for understanding essential financial concepts, products and risks.
The average scores among U.S. teens were unchanged from results of a similar assessment in 2012. PISA is coordinated by the Organization for Economic Cooperation and Development (OECD), an assembly of governments from 35 member countries.
About PISA
The Program for International Student Assessment (PISA) is a triennial international survey which aims to evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students in science, reading, mathematics and financial literacy. Around 53,000 students were assessed in financial literacy, representing about 12 million 15-year-olds in the schools of the 15 participating countries.
The 2015 assessment covers 15 countries and economies: Australia, the Flemish Community of Belgium, Brazil, seven provinces in Canada (British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island), Chile, four provinces in China (Beijing, Shanghai, Jiangsu and Guangdong), Italy, Lithuania, the Netherlands, Poland, Peru, the Russian Federation, the Slovak Republic, Spain and the United States.
For more information, visit http://www.oecd.org/pisa/aboutpisa/.
PISA Findings
“The initial release of PISA findings (2012) revealed American teens were completely average when it comes to demonstrating a strong knowledge of financial skills. That measurement gave us a baseline to see room for growth or decline. It’s concerning with these latest findings to see that we haven’t moved the needle, and we still have significant work to do to provide meaningful access to teaching youth about money,” says Billy Hensley, Ph.D., senior director of education with the National Endowment for Financial Education® (NEFE®).
The latest PISA release finds only about one in 10 students in the U.S. achieved the highest proficiency level as a top performer, defined by the report as students who can look ahead to solve financial problems or make the kinds of financial decisions that will be relevant to them in the future. The average score among U.S. teens was not different than the OECD average.
China, Belgium & Canada Top 3 Countries Surveyed
China ranked number one overall, followed by Belgium and Canada. Chile, Brazil and Peru ranked as the bottom three. Eight countries — including the U.S. — participated in the 2012 and 2015 PISA financial literacy assessment. The Russian Federation and Italy showed measurable gains in average scores, while Poland, the Slovak Republic, Australia and Spain showed measurable declines.
“It’s clear that we need a better national strategy to teach youth. There are random acts of success with states who are doing it well. But as a country, we need to have a clear set of standards for providing well-thought-out financial education that is relevant and establishes positive behaviors,” says Hensley. “Additionally we need to continue to train educators to effectively deliver financial education and ensure that we are meeting the needs of Americans from all socio-economic backgrounds.”
The PISA study reports just 3 percent of U.S. students from lower-income schools were high performers, compared to 45 percent of students from higher-income schools. Among the low performers, 38 percent of students were from lower-income schools, compared to 16 percent from higher-income schools.
Financial Education Taught In School?
“Parents shouldn’t assume kids are being afforded this education in schools. We need to have regular, meaningful interactions to teach our children the fundamentals of money,” adds Hensley. “A great starting place is to get your child involved with a bank or credit union by having an account and learning to manage it during their teenage years.”
Among students who participated in the PISA study, 53 percent report that they have a bank account, which is an important distinction, as students with a bank account scored on average 42 points higher than those students who do not have a bank account.
To view the complete PISA report, visit http://www.oecd.org/finance/launch-pisa-financial-literacy-students-2017.htm
Teens Learn to Manage Money With a Debit Card
Like many parents, you probably opened a savings account for your child when he or she was a baby. If you’ve already been teaching smart money management skills and your son or daughter has shown financial responsibility, a debit card/checking account from Mid Oregon Credit Union can be a great next step now that your child is a teen., and they can learn to manage money with a debit card.
Starting Small to Demonstrate Responsibility
As kids hit middle-school age they start spending more time with friends and you’re not always around when they’re using money. Some of these times when the stakes aren’t so high could be good opportunities for them to demonstrate responsibility and use a debit card. Movies or lunches out can be good activities to start with for kids to pay with an alternative to cash.
Though most teens, like most people, no longer write many checks, when the opportunity arises for your teen to write one, jump on it. For example, perhaps your teen pays part of the cell phone bill each month. Have your teen write a check to you for his or her part of the payment. It would be easier just to transfer money from your teen’s account to yours, but getting practice writing a check once in a while can be beneficial for your teen.
Monitoring Their Balance
Explain to your teen the importance of keeping track of the balance in his or her account either by writing each transaction in a check register or by closely monitoring accounts online, frequently. Also remind your kid that online balances might not portray the actual balance in the account if transactions haven’t posted or if checks haven’t been cashed.
Today’s Tools Make It Easy
With today’s mobile banking tools, your teen (and you!) can be up to speed on account balances, transactions and mobile alerts. With our Simply Free Checking, your teen doesn’t need a minimum balance or to pay a monthly maintenance fee, so it’s easy and cost-effective. And with Mobile Deposit, that check from the neighbor for mowing the lawn or walking their dog can be deposited from home.
Our Mid Oregon tool of CardNavSM by CO-OP gives real-time security and control over Mid Oregon debit cards through smartphones or tablets! It can use GPS to restrict transactions to businesses within a designated area. You can limit debit card use to specific merchant or purchase types. You can receive near real-time, in-app transaction alerts. and receive alerts when you’re getting close to any personal spending limits set. Visit MidOregon.com for information on downloading this free app.
The professionals at Mid Oregon are eager to help your teen take this next step financially. Stop by one of our seven convenient Central Oregon branches and we’ll show your teen just how awesome it is to go through life with your credit union by your side.
Foster Lake RV Resort
In August of 2016 Mid Oregon Credit Union members Howard and Gari Lynn Tocher purchased Foster Lake RV Resort on Foster Lake near Sweet Home, Oregon. Foster Lake is a reservoir created by the Foster Dam on the South Santiam River off of highway 20, about 93 miles west of Bend. Foster Lake offers visitors a variety of recreation opportunities such as swimming, boating, fishing, camping, hiking and picnicking. See the website for Travel Oregon.
The Tochers have been members of Mid Oregon since 2012. Long-time Crook County residents, they worked in Construction and Real Estate for many years before deciding their dream was to own and run the popular Linn County resort.
About the RV Park
The resort features Full Hook Up RV sites which are equipped with either a 30 or 50amp service. Their partial hook up sites provide power and water but no direct sewer outlet. In addition they have a few cabins, a club house with a new fitness room, a kids play area, a convenience store, business center and onsite pool in the summer. A 2017 “RV Parks Review” provides a good picture of the park’s transition to a great place to stay:
“I came to this park in June of 2016. After six weeks I was ready to find a new location. The former owners were terrible. I stuck around to see what the new owners had to bring to the table. I am so pleased with my decision to stay. The new owners brought the internet service up to date. The facility is very clean and well kept. Nice to see people who care about their park, and working every day to make it even better. I have decided to stay here where I feel safe and I don’t worry about my surroundings. Great job. Looking forward in 2017 with a great location.”
How Mid Oregon helped Foster Lake RV Resort
We were fortunate to connect with Gari Lynn Tocher of Foster Lake RV Park recently before the beginning of the busy summer season:
How did Mid Oregon Commercial solutions help your business?
Mid Oregon Credit Union was great to work with and truly a partner in helping my husband and I to secure the purchase of our much desired RV park.
What did you like best about working with Mid Oregon?
They made the transition smooth and uncomplicated. Mike Testerman, our loan officer was helpful, supportive and gave us clear direction through the entire lending process.
What would you recommend to other business owners about having Mid Oregon as a commercial services provider?
We are consistently recommending Mid Oregon Credit Union to family and friends in their pursuit of residential, or commercial lending needs. For commercial purposes, Mid Oregon Credit Union is has a straight forward, and professional approach to helping small business owners position themselves for success.
More About Foster Lake Resort
Foster Lake RV Resort
6191 Highway 20 East
Foster, OR 97345
541-367-5629
6191 Highway 20 East
Foster, OR 97345
flrvresort@gmail.com