New Poll Underscores Need for Financial Education in School

  New Poll Underscores Need for Financial Education in School

Many High School Seniors Show Signs of Financial Knowledge, but Lack Tools and
                    Know-how to be Financially Responsible

Business Wire

RIVERWOODS, Ill. -- April 03, 2013

High school seniors who have taken a personal finance course are more likely
to engage in financially responsible behaviors, such as saving, budgeting, and
investing, according to a recent study sponsored by Discover Financial
Services as part of its Pathway to Financial Success program
(www.pathwaytofinancialsuccess.org). In the face of economic uncertainty after
high school and college, students who discuss personal finances at home and at
school are more happy, confident, and knowledgeable about life after
graduation than those who do not.

The findings highlight the need for financial education curriculum in schools
to bolster the conversation around practical money management and to build
confidence among students preparing to graduate high school. Pathway to
Financial Success, a program dedicated to getting financial education into the
classroom, has been providing grants to high schools to help pay for resources
and teacher training on financial education. Launched in February 2012, the
program has provided more than $2.6 million in financial education grants to
nearly 300 public high schools across the country, reaching more than 65,000
students.

Students Rank Personal Finance as Most Important Subject in School

Students who have taken a personal finance class at school are twice as likely
to be confident in their abilities to manage finances and more likely to
prepare a budget. Of students who have taken a personal finance class, 60
percent have a budget, versus 46 percent of students who have not taken a
class. The study also found that 32 percent of those who have taken a class
invest versus 17 percent who have not taken a class.

“By getting financial education in schools, we’re helping the next generation
gain confidence for life after graduation and giving them the opportunity to
achieve brighter financial futures,” said David Nelms, chairman and chief
executive officer of Discover.

The 1,200 high school seniors who participated in the national study ranked
personal finance as the most important subject they needed to learn in school
for their future success – tied with math and ahead of science and technology
– but less than one third (29 percent) have taken a personal finance course in
school.

Key Findings

The majority of high school seniors are earning their own spending money,
planning on contributing or paying entirely for expenses when they graduate,
and intending to work while going to college.

  *Only one-third claim to be “very confident” in their ability to manage
    their personal finances.
  *Female students are less confident about their ability to manage money (28
    percent) than male students (40 percent), but females were twice as likely
    to rank personal finance as most important to their personal success.
  *Only half (52 percent) know the cost of their tuition.
  *Almost half (48 percent) still save through a “piggy bank.”
  *Nearly half (45 percent) do not use a budget.
  *About one-third (33 percent) say they’ve already encountered issues with
    managing their own finances.

Methodology

The survey titled, “High School Seniors’ Financial Knowledge and Outlook: A
Discover Pathway to Financial Success Survey,” was conducted for Discover in
March 2013 by the research firm Penn, Schoen, Berland in collaboration with
Burson-Marsteller. The survey was conducted online among 1,200 randomly
selected current high school seniors, who plan to graduate in the spring of
2013. The margin of error for the total sample is +/- 2.8%. The study was
commissioned by Discover to increase the understanding of issues surrounding
young people and money management, including understanding students’ financial
knowledge, behaviors, and financial outlook of the future as they prepare to
graduate.

About Pathway to Financial Success

Pathway to Financial Success is a five-year, $10 million commitment to bring
financial education curriculum into public high schools across the country.
Schools receiving grants must agree to pre- and post-test students on the
curriculum to measure success. Discover began the program in February 2012 and
has since given more than $2.6 million to schools across the country. Lesson
plans, tips and information for how to talk to teens about money are available
on www.pathwaytofinancialsuccess.org.

Full Findings

For full findings, please visit www.pathwaytofinancialsuccess.org/blog.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S. financial
services. Since its inception in 1986, the company has become one of the
largest card issuers in the United States. The company operates the Discover
card, America's cash rewards pioneer, and offers home loans, private student
loans, personal loans, checking and savings accounts, certificates of deposit
and money market accounts through its direct banking business. Its payment
businesses consist of Discover Network, with millions of merchant and cash
access locations; PULSE, one of the nation's leading ATM/debit networks; and
Diners Club International, a global payments network with acceptance in more
than 185 countries and territories. For more information, visit
www.discoverfinancial.com.

Contact:

Discover
Matthew Towson, 224-405-5649
matthewtowson@discover.com
 
Press spacebar to pause and continue. Press esc to stop.