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Economic Development and Quality of Life for People and Communities
High School Financial Planning Program
Issue
To enhance the financial well-being of teenagers in their adult years,
it is essential that they become knowledgeable about personal finance.
This is especially true considering current trends reflecting rising
personal bankruptcies, consumer credit delinquencies, and inadequate
savings for retirement among adults. Studies concerned with the financial
knowledge of teens have reported that teenagers are progressing into
adulthood without the basic skills and knowledge it takes to make educated
financial decisions once they are on their own. Additionally, the spending
power of teens continues to increase. Survey results released in April,
2002 by the National Jump$tart Coalition for Personal Financial Literacy
show high school seniors know even less about credit cards, retirement
funds, insurance, and other personal finance basics that they did five
years ago. On average, participants (12th graders) answered 50.2 percent
of the questions correctly - a failing grade based on the typical school
grading scale.
What has been done?
Since 1991 the University of Arizona Cooperative Extension in partnership
with the National Endowment for Financial Education (NEFE), and local
teachers, have educated high school students about basic money management
and financial planning concepts. Over the past 10 years, the University
of Arizona extension faculty have worked with classroom teachers to
provide support for the HSFPP Curriculum. A new partnership with the
Arizona Credit Union League, Inc. is providing a tremendous opportunity
for additional classroom support and professional development for teachers.
Many of their professionals across the state are willing to team up
to increase the financial literacy of youth. Additionally, the Students
in Free Enterprise (SIFE) at the University of Arizona are willing to
assist with the program. The University of Arizona Cooperative Extension
will continue to promote and expand the HSFPP in the state of Arizona.
Impact
Approximately 80,121 Arizona high school students and other young people
have increased their knowledge of money management skills since this
program began. As a result of participating in the NEFE High School
Financial Planing Program (HSFPP), 86 percent of students demonstrated
an increase in financial knowledge or behavior when dealing with money;
92 percent reported three months later that they believed the way money
is managed affects their future; 84 percent felt confident in making
financial decisions, 58 percent changed spending habits and 56 percent
improved saving habits.
Establishing a savings account was identified by the greatest number
of students when asked about the most important thing they did as a
result of participating in the HSFPP. This finding is particularly noteworthy
since a recent study from the National Bureau of Economic Research indicates
that if you teach a teen to save, he or she will save more as an adult.
"I compare prices when I shop. I know more about credit an insurance,
and I feel more confident about money."
–participant
Funding
University of Arizona Cooperative Extension
National Endowment for Financial Education (NEFE)
Federal: No Child Left Behind Act of 2001
Arizona Credit Union League, Inc.
Contact
Janice Shelton, agent, family and consumer sciences
La Paz County Extension P.O. Box BL
The University of Arizona
Parker AZ 85344-4064
Tel: (928) 669-9843, FAX: (928) 669-9763
Email: shelton@ag.arizona.edu
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