1. 1 Educating Teens About Money—Using Education to Increase Sustainable Consumption Karen Varcoe, Ph.D. University of California Brenda Roche, M.S., R.D. University of California, Los Angeles County

2. Teens? Consumers of today and tomorrow Decisions will impact sustainability of resources—human, natural, and man-made Teens often lack the decision-making skills to make informed choices—choices that will promote sustainable consumption 2

3. 3 U.S. Teens & Money Teens spend  98% of what they earn  $74 weekly (their own & others’ $)  $200 billon yearly  $32 billion in food purchases Teens & credit  10.3% own credit cards 15.7% make the minimum payment

4. 4 U.S.Teens are not financially literate Jump$tart Surveys 1997 = 57.3% 2000 = 51.9% 2002= 50.2% 2004 = 52.3% 2006 = 52.4% 2008 = 48.3%

5. The Research Schwab – want to learn about money matters “so they can pay bills” Networks Financial Institute – financial skills are lacking among young people Harris Interactive – 4 x more likely to look for someone in Facebook than search for a lower-rate credit card

6. Teens Worry About Economy Cheap has become the new thrifty and “savvy” 53% spending less 51% talking to friends 29% anxious 29% financial challenges distracting and troublesome

7. Is This a Teachable Moment? Need information on what teens want to learn and how to engage  Survey in 1998 (N = 323)  Repeated in 2008 (N = 558)

8. Purpose of Research Ascertain what teens want to know about money Find out how what teens “want to know” differs from what adults “think they should know” Identify changes from 1998 to 2008 8

9. Method Data collected from: 1998 2008 Juvenile Hall/Probation22% 28% Migrant Ed12 8 Pregnant & Parenting24 14 Public High Schools23 31 Youth Groups19 14

10. Demographics Gender Male3840 Female6260 Grade 7 th & 8 th 1010 9 th & 10 th 2722 11 th & 12 th 6056 Not in school 212 Ethnic Group African-American14 7 Caucasian18 31 Latino/Hispanic48 55 Asian/Other2110 1998 2008

11. Why Is Money Important to You? 1998 2008 Buy things I need64% 76%*** Gives independence16 31*** Do things with my friends 25 33 * Buy things I want37 32 ns Save for future purchases 26 47*** Save for education32 42 ns

12. Do You Currently Have A… 19982008 Savings account38%53%*** Checking account1223*** Credit card410 ** Debit card619*** Investments (bonds, stocks)911 ns

13. How Do You Get Your Money? 19982008 Allowance23%22% ns Odd jobs1825 * Gifts1415 ns Regular job-full/part2631 ns From parent4849 ns

14. How Much Income Do You Have Each Week? 19982008 Less than $1025%18% ** $11 - $252724 ** $26 - $501619 ** $51 - $100 1617 ** More than $1001622 **

15. What Adults Think Teens Need to Learn Methods  Similar survey as teens  Work with teens  Completed at the same time as the teen survey  Number of surveys 49 in 2008 67 in 1998

16. Demographics of Adults 19982008 Males28%18% Females7282 African-American12 2 Caucasian 4246 Latino/Hispanic3331 Other/Asian12 8

17. Satisfaction Summary teens vs. adults 2008  Teens very satisfied with their money enough to cover needs & wants most of the time  Adults Teens just satisfied with money Enough to cover needs & wants some of the time  Overall—teens more positive in 2008 vs. 1998

18. What Makes Money Important 1998 2008 teensadultsteensadults Do things w/ friends 25%58%***36%51%* Save—education32 6***42*** 6*** Buy wants3766***3294*** Save--future purchases26 9***4712*** Impress friends 317*** 223*** Buy needs64597639*** Gives independence1638***3143

19. Importance of $$ Summary Teens  Buy needs (1998 & 2008)  Saving for future (2008)  Saving for education (2008) Adults  1998 & 2008 Buy wants

20. How Satisfied are Teens with the Use of Their Money 19982008 TeensJust Satisfied Very Satisfied AdultsJust Satisfied Just Satisfied

21. Enough $$$ to Cover Needs 19982008 TeensMost of the time Most of the time AdultsSome of the time Some of the time Significance = ***

22. Enough $$ to Cover Wants? 19982008 TeensMost or Some Most of the time Adults***Some or Never Some of the time

23. 10 Top Topics of Interest--Teens 1998 2008 teensadultsteensadults How to buy a car 66%82*72%88%* Insurance45435657 Making $$ go farther 5249*5741* Easy ways to save5469**5171*** Talking w/family $$$46525269* How to get credit4630*4735 Savings accounts4172***4361* Filing a tax return3969***4363* Saving for a home2914*3818*** Talking—not enough $4258*3767***

24. 10 Top Topics of Interest--Adults 1998 2008 teensadultsteensadults How to buy a car 66%82*72%88%* Checking Accounts3266***2878*** Bad credit2362***2578*** Easy ways to save5469**5171*** Talking—not enough $4258*3767*** What is credit2064***2367*** Talking w/family $$$46525269* Filing a tax return3969***4363* Savings accounts4172***4361* Insurance45435657

25. Topics of Interest Teens & Adults Agree Car buying Easy ways to save Filing a tax return Talking about when there’s not enough $$ Saving accounts Insurance

26. Teens Still Want to Learn About… How to get credit? (still not interested in how to fix bad credit) Talk with family about money Easy ways to save How to save for college How to buy a car

27. Teens Still Want to Learn About… Opening/using a savings account Making my money go farther Setting financial goals How to get the best buy How to buy clothing/ personal care items

28. How They Want to Learn During school Use magazines & newsletters Using web

29. Is this a Teachable Moment? Teens are concerned about the economy Teens financial literacy is low Teens have access to & spend a lot of money We know what teens want to learn We know how teens want to learn

30. 30 Money Talks The Curriculum Created to appeal to teenagers as it increases financial literacy. Available free on internet at Moneytalks4teens.org Moneytalks4teens.org

31. 31 Program Development Topics of interest to teens Design that appeals to teens Use in school curriculum and other venues

32. Curriculum Features Teens guides Leader’s guides Assessment tools Interactive website

33. 33

34. 34 Teen Guides Focused on topics identified by teens  Car buying  Easy ways to save  Shopping tips  Credit  Banking  Goals

35. 35 Teen Guides Include… Quizzes Informational articles Games  Important to be interactive

36. 36 Effectiveness of Teen Guides Method Teen Guides were tested N=114, Students 13-20

37. 37 Procedure Pre-tested on financial knowledge, habits & attitudes Presented 4 teen guides  Money Personality, Savings Made Simple, Shopping Savvy, and Car Buying Post-test given after teen guides taught

38. 38 Knowledge Score 19 true/false questions assessed knowledge Before= 56% correct After= 70% correct

39. 39 Perceived Financial Knowledge Increased When it comes to handling my money, I know (everything, most of, some of, or a little about) what I need to know. Significant increase—teens indicated they know more about handling money after Money Talks.

40. 40 Talking to Family About Money Talk to Family Scale  The importance of savings.  Our family finances.  How our family’s money should be spent.  I talk to my family about my own use of money. Teens were more likely to talk to their family about money after the Money Talks program. Females talked to families more than males.

41. 41 Savings Scale, cont. Savings Scale—included 10 items such as…  I'm likely to save money by shopping for the best long- distance phone rates.  Saving money for the future is something I think about.  When I get money, I save some of it no matter what.  I do a good job of budgeting my money. The amount saved increased significantly from pre to post Females received significantly higher scores than males

42. 42 Shopping Improved shopping behavior compared prices waited to buy items on sale

43. 43 Auto Insurance Car Insurance Scale  I'm likely to save money on my car insurance because I've taken Driver's Education classes. I use my good grades I don't have traffic tickets. I'm added to my parents' policy rather than having my own policy. Significantly more knowledge about how to save money on car insurance from pre to post

44. 44 Banking Series 117 Matched Pre/Post Tests Knowledge Gain  19.1% increase- pre/post knowledge gain  13% increase- safest way to deposit cash  21% increase- knows rights if checks are stolen Behavior Change  10.3% increase- save some $$ first  12% increase- would use pre-authorized payment from an account »(all statistically significant)

45. 45 Credit Series 89 Matched Pre/Post Tests Knowledge Gain  12.3% increase- pre/post test knowledge gain  9% increase- paying bills on time most important to establish credit  13.7% increase- know the cost of credit  17.7% increase- know what to ask when loan shopping Behavior  12.9% increase- would select a credit card based on annual fee, minimum payment & parent recommendation »(all statistically significant)

46. 46 Food Buying 155 Matched Pre/Post Tests Knowledge Gain  8.2% increase- from pre/post test  12% increase- best time to shop is after eating Behavior Change  16.5% increase- would use unit pricing  7% increase- would use coupons at restaurants  6% decrease- buy snacks at the movies (all statistically significant)

47. 47 Conclusions Teaching a financial curriculum can improve financial literacy. Knowledge and appropriate behavior increased. Attitudes about saving and saving behavior improved. Better choices when shopping. More knowledge about what they were buying.

48. 48 Issues of Importance Encourage talking about money with families – especially for boys. Emphasize value of savings accounts, especially with diverse ethnic teens.

49. What We Learned… Information provided in Money Talks is relevant Website & interactive games are best Use items they are interested in (buying a car) to develop financial education Teens seem to be getting message about savings Talking about money in the family is important to teens Some teens just don’t want more information!

50. 50 Implications Need to teach financial management to teens. Knowledge level may be increased by talking with family. Recognize importance of delivery method and content -- based on what and how teens want to learn.

51. Role of Educators Teach teens – they may teach parents Encourage – adult students to talk with children (don’t wait until teenagers) Look for teachable moments – teachers & parents

52. 52 Available on the Web

53. 53 How Can This Curriculum Be Used?

54. 54 What’s Next? Continue to update website New games More FAQs Next units Living on My Own Filing a Tax Return Pilot testing Working Series

55. 55 Contact Information Karen Varcoe University of California Cooperative Extension 135 C Highlander Hall Riverside, CA 92521 951-827-5241 karen.varcoe@ucr.edu moneytalks4teens.org