WASHINGTON — A survey of Northern Virginia teens finds that most are saving, have at least some financial literacy, and in some cases are helping pay their families’ monthly bills.
Apple Federal Credit Union surveyed students who attend nearly two dozen high schools where the bank operates student-run, mini branches.
The credit union says that 63 percent of the 3,000 students it surveyed have a savings account in their own name, and 80 percent understand what it means to earn interest. But more than half don’t know how much interest they are earning on their account.
Most are saving their money for college or a car. But some are using at least a portion of what they’re earning for grown-up needs.
“Surprisingly, 16 percent are actually helping their family pay their bills from their savings accounts, actual household bills and rent to help their families out,” Apple Federal’s Erin Vegara tells WTOP.
Most students have some knowledge about options to save money in addition to simple savings accounts. About half recognized that certificates of deposit, annuities, bonds and mutual funds were other interest bearing tools. But only 38 percent realized they could lose part of their principal when investing in mutual funds, bonds and stocks.
Vegara says the best way for parents to teach their teenage children about financial responsibility is to be open with them.
“Sit down with them when they’re paying their bills. Show them what it costs to have a cellphone. How much does cable actually cost them,” she said. “It makes the students a lot more aware of the everyday expenses that their families incur.”
Virginia is one of only four states that require a personal finance class to graduate from a public high school.
