EverFi is excited to kick off Financial Literacy Month by sharing results from a new investigation that set out to answer the question: How prepared are American high school students to tackle the financial decisions they’ll make as they enter adulthood?
Findings are based on the analysis of survey responses and assessment scores of more than 94,000 students who completed EverFi’s high school financial education course from August 2014 through March 2015. All students were between the ages of 13 and 19 and completed both pre- and post-course surveys and assessments.
This research is made possible through the hundreds of organizations across the US that provide EverFi’s financial education program to the communities they serve — and the thousands of teachers who utilize the web-based course with their students every semester.
According to EverFi’s survey of more than 94,000 teens:
—Fewer than half of teens feel prepared to choose the right type of financial institution for their savings, check and understand their credit score, or apply for financial aid for college.
—Fewer than 6 in 10 students feel prepared to decide how much money to save and how much to spend.
—Financial Education is critical to increasing students’ confidence in their financial decisions. Students knowledge of key financial concepts rose by an average of 74% after taking EverFi’s financial education course.
—After completing the EverFi course, more than 60% of students felt prepared to make sound budgeting decisions, monitor their credit, and apply for financial aid.
Teens and Credit Scores
With hundreds of colleges and universities marketing credit cards to students, and hundreds more promoting debit or prepaid cards, no teen should head off to college without a solid understanding of credit scores, credit reporting, and the repercussions of poor credit.
—Only a quarter of high school students reported that they felt prepared to check their credit scores and understand what the scores mean prior to taking the EverFi’s high school financial education course.
—Fewer than half of students could pass a five-question knowledge pre-assessment on credit scores.
—The good news is that financial education can help. After completing EverFi’s Financial Literacy course, 62% of students felt prepared to check and understand their credit scores, a 132% increase from pre-course levels.
Want to learn more? Stay tuned for additional findings on Girls and Financial Confidence and Family Financial Capability later this month!