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

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

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

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)

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)

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

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)

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)

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)

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 > $100k $175/week

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

Making Money Earnings –9% $0 –36% <$2500 –26% $2500 – 4999 –24% $5000+ (American Savings Education Council)

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)

Saving and Spending Top items and activities students are responsible for paying themselves –Entertainment related82% –Clothing58% –Car or related expenses50% –Vacations/trips w/friends45% –School needs31% (1999 Youth and Money Survey – American Savings Education Council)

Why so Much $$? Parents are wealthier – trickle down effect Time strapped parents using $ as a substitute for time Guilt Today’s kids have more ‘needs’ (Teenage Research Unlimited, Zandl Group)

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)

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

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

Resources on the Web Outreach and Extension –Outreach.missouri.edu/ceupdate Jumpstart Coalition – National Endowment for Financial Education – –

Resources on the Web National Institute for Consumer Education – University of Missouri-St. Louis, Center for Entrepreneurship and Economic Education – –

Resources on the Web American Savings Education Council U.S. Treasury