| Spring/Summer
2004
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version 
“No matter who you are, making informed decisions
about what to do with your money will help build a more
stable financial future for you and your family.”
Alan Greenspan, Chairman
Federal Reserve Board
If you believe high schoolers ought to graduate with
enough basic knowledge to make sound financial decisions,
then you’ll find cause for concern and reason
for optimism in Jump$tart Coalition’s most recent
financial literacy survey.
The cause for concern is readily apparent. Since 1997,
when Jump$tart began ssessing the financial literacy
of America’s 12th graders, results have actually
declined. The average score among participating 12th
graders in 2002 was 50.2 percent — down from 51.9
percent in 2000 and 57.3 percent in 1997. According
to the survey’s executive summary, “Students
did best on questions relating to income (61.6%)
and worst on those relating to savings and investments
(41.6%).”
The good news is that the survey is focusing greater
attention on the need to improve inancial literacy.
A number of national groups, including the Federal Reserve
and the U.S. Treasury, are now working with Jump$tart
to help students acquire the tools to make informed
financial decisions.
The financial literacy survey was developed and conducted
by Dr. Louis Mandell, professor of finance at SUNY Buffalo.
Dr. Mandell has been involved in the project since it
began in 1997. www.jumpstart.org
Top 5 Fundamentals
The Federal Reserve Board and the U.S. Treasury
Department have identified five fundamental practices
that consumers should follow to manage their personal
credit:
- Build savings to avoid high-cost debt and improve
payment options.
- Pay bills on time.
- Pay more than the minimum payment.
- Comparison shop for credit and obtain only the
credit you need.
- Understand your credit history and how it affects
you.
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