Why+Financial+Education+Matters

**Given today's economic challenges, it's more important than ever that our students are recieving the information they need to make smart economic decisions both now and in the future. Below are some compelling statistics that highlight the need to make financial education a top priority in our educational system:** //Sources://
 * 2 out of 3 Americans will fail to realize one of their major life goals of either owning a home, providing a college education for their children, or retiring on enough income because of poor money management skills.
 * 56% of Americans think things will be worse for their own children or for future generations.
 * 80% of parents believe that their children are being taught personal money matters in school, yet 90% of high school students and 87% of college students say that whatever they know about money they learn from their parents.
 * Most children merely imitate the saving and spending habits they see modeled at home.
 * 56% of parents believe high school graduates are totally unprepared to manage their personal finances responsibly.
 * 78% of parents said their high school student does not have a budget.
 * Among parents with children 5 and older, only 26% felt well enough prepared to teach their kids about personal finances.
 * 55% of college students acquire their first credit card during their first year in college, and 83% have at least one credit card.
 * Bankruptcy filings reached all time highs in 2005 exceeding more than 2,000,000 individuals. This represented an increase of more than 28% from the previous year.
 * Today, 18-24 year olds represent the fastest growing age group filing for bankruptcy.
 * The personal savings rate in the U.S. has declined sharply from 7.6% in the mid-80s to less than 1% in 2006. At several times during late 2005 and early 2006, the rate actually fell below zero to a negative 0.6%.
 * 70% of Americans worry about money issues on a daily basis.
 * 66% say they tend to live from paycheck to paycheck.
 * Worries about personal money problems are now the leading cause of stress in the family as well as in the workplace.
 * 40% of Americans currently live on 110% of their monthly income. This is leading to greater amounts of family debt and or a depletion of already scarce personal savings.
 * American households with debt have an average of nine credit cards and carry about $11,000 in revolving debt.
 * The average credit card debt among those university students who carry debt is $7,800.
 * Graduate students accumulate more than twice the average balance of final-year undergraduate students; $7,800 vs $3,260.
 * Poor money management skills usually translates into a poor credit rating which can seriously impact the following:
 * The ability to get a job or be promoted
 * The ability to rent an apartment
 * Insurance premiums for home, life, or car
 * Obtaining a utility hookup without a cash deposit
 * Borrowing money for a car, home, or education
 * Being targeted by predatory lenders
 * Potential loss of hundreds of thousands of dollars in additional interest costs
 * With today’s trends, only 1% of the population at the age of 65 will become wealthy, 4% financially independent, 15% will have modest savings, while the remaining 80% will be financially broke or dependant on others for survival.
 * www.cuna.org
 * www.practicalmoneyskills.com
 * www.jumpstartcoalition.com/upload/Personal%20Financial%20Stats%202005%20Letterhead.doc
 * www.jumpstartcoalition.com/upload/Mandell%20Paper%20April%202005.doc
 * www.federalreserve.gov
 * www.myfico.com