As High School Graduates Open their Gifts, Parents Have Key Opportunity to Talk Money Management
MCLEAN, Va., June 14, 2011 /PRNewswire via COMTEX/ --
This month, millions of young adults across the country will cele brate their graduation from high school. To mark this achievement and help them prepare for the next chapter in their lives, many graduates will receive monetary gifts from family and friends. According to a new survey of high school seniors sponsored by Capital One Financial Corporation (NYSE: COF), 75 percent of this year's graduates expect to receive gift money for their graduation. Yet only 19 percent of seniors polled have created a budget and mapped out a plan for the cash, and only 45 percent of survey respondents plan to put their graduation gift money in savings. The survey results suggest that graduation season is an ideal time for parents and graduating students to have important conversations about money management and financial decision-making, allowing graduates to make the most of their money as they set out into the "real world."
"Good financial habits and decision-making skills are crucial building blocks for economic success, and it's never too early - or too late - to talk about smart money management," said Shelley Solheim, Director of Financial Education at Capital One. "Graduation marks a milestone achievement and a time of change in life, and money certainly comes in handy to help new graduates meet new needs and responsibilities. We encourage parents to take advantage of opportunities to talk to their teens about finances, particularly as high school seniors graduate and embark upon the next phase of their lives."
Graduates look to parents for financial guidanceMost students (87 percent) report that their parents are their primary resource for information about money management and personal finance issues, but only 22 percent of high school seniors polled report that they talk to their parents about money management "frequently." Another 44 percent say that they "sometimes ask their parents questions" about personal finance. The survey suggests that parents' efforts to teach their kids about money have a significant impact on their teens' confidence regarding money management skills:
Nearly four in ten (38 percent) graduating seniors say that they are unsure or unprepared to manage their own banking and personal finances, and the survey suggests that many parents may be missing out on opportunities to help their children understand key concepts and build their personal finance skills.
"It is more important than ever for young people to learn about and gain experience with smart money management, especially before graduating from high school and heading to college or into the workforce," said Scott Gamm, founder of HelpSaveMyDollars.com and a sophomore at New York University's Stern School of Business. "I encourage young adults to take charge of their financial futures now. Reach out to your parents and ask them questions, get them to help you create a budget, and don't forget to put money away in savings."
To help parents and young adults effectively talk about financial choices, challenges and dreams, Capital One has partnered with Search Institute to create Bank It, a free multimedia financial literacy program available online at www.bankit.com. The program is designed to help parents and teens work together to learn practical skills for making positive money choices and avoiding common mistakes.
Managing an allowance and job experience help build confidence
A little over one-third (37 percent) of high school seniors polled receive an allowance. Many experts suggest that an allowance can give kids helpful money management experience, and the survey results suggest that those students with an allowance may help develop good financial habits and boost confidence in money management skills.
Having a job is another key way students reported developing their personal finance skills. Of those who have had a job before, 72 percent think that their job experience has prepared them for their financial future in some way. Only half (51 percent) of high school seniors surveyed currently have a job lined up for the summer, however.
Tips for students
Capital One offers graduating seniors the following ten tips for a healthy financial future:
Survey MethodologyThe findings reported in this release are from a survey conducted by the opinion research firm, Braun Research of Princeton, New Jersey. The survey was sponsored by Capital One Financial Corporation in McLean, Virginia. Braun Research completed 501 interviews with graduating high school seniors throughout the United States. The interviews were conducted between 5/10/2011 and 5/16/2011. The margin of error for this study is +/- 4.38 percentage points at the 95% confidence level. Sampling for this study was supplied by SSI. Sampling for this study was conducted using a national probability replicate sample. All interviews were conducted using a computer assisted telephone interviewing system. Statistical weights were designed from the United States Census Bureau statistics.
About Capital Onewww.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $125.4 billion in deposits and $199.3 billion in total assets outstanding as of March 31, 2011. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in Texas, Louisiana, New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
SOURCE Capital One