First Bank Marks Financial Literacy Month With Workshop at High School in Trenton

TRENTON, NEW JERSEY—April 20, 2016—Money management is a key life skill so First Bank is bringing experts to Foundation Collegiate Academy to teach teens financial literacy before they go off to college.

Bankers from First Bank’s Hamilton, Ewing and Lawrence branches worked with the students to explain how interest works, the difference between a mortgage and rent and the role of the Federal Deposit Insurance Corporation (FDIC) during the interactive session on April 19 to celebrate Financial Literacy Month. The school visit was a part of the year-long financial literacy program the bank presents with Everfi.

“Most high schools do not provide a lot in the way of financial education. I think this is a mistake. Like most subjects, the education process builds,” said Patrick Ryan, CEO of Hamilton-based First Bank. “If we can teach students the basics at a young age, it will become much easier for them to grasp more complicated concepts later in life and thus make good financial decisions as adults. That means banks and other service providers need to find a way to supplement what little is offered in the schools.”

Students were eager to learn about finances and the value of money when First Bank sponsored a financial literacy program at the charter school in Trenton this week that allowed them to ask questions about money and banking.

“We’re young and we tend to buy things and I’m trying to get away from that and invest my money in things I’m going to need, like school supplies,” said Keimark Jackson, a 16-year-old Foundation Collegiate junior who is looking ahead to college. “My parents aren’t always going to be around to manage my money and I’m going to be on my own, so I have to make my own budget and buy what I need instead of what I want.”

Students want to learn more about money management. According to Sallie Mae’s 2016 Majoring in Money: How American College Students Manage Their Finances study of college students ages 18–24, 83 percent want to know more about aspects of managing money. Of that number, specific topics young adults want to learn about include: saving strategies (37 percent), how to pay for college (32 percent) and budgeting (32 percent).

A 2011 Charles Schwab Teens and Money survey showed that 18-year-olds reported being less knowledgeable about money topics compared to the results of the same survey from 2007. Specifically results were:

· How credit card interest and fees work (declined from 43 percent to 32 percent)

· How to manage a credit card (declined from 64 percent to 39 percent)

· How to balance a checkbook or check the accuracy of a bank statement (declined from 60 percent to 43 percent)

“Financial literacy is about more than just creating an educated customer base,” Ryan said. “It’s about ensuring that people make the right financial decisions. That not only helps the individual, but society overall.”

About 34 percent of American parents teach their teens how to balance a checkbook and less than that explain how credit card interest and fees work, according to Charles Schwab’s 2008 Parents & Money survey. Ninety-three percent of parents with teenagers reported worrying that their children might make financial missteps such as overspending or living beyond their means. The survey also found that one in five parents involves their teen in the family's budgeting and spending decisions.

“Overall, as an industry, I think we still have a lot of work to do regarding financial literacy,” Ryan said. “I sense that’s starting to change. The disruption from the recent financial crisis was an unpleasant reminder about the importance of understanding finances. At First Bank, we are trying to do our part in the communities we serve. If all banks organize a couple of programs each year, we can help fill the void that exists in financial education today.”

PHOTO CAPTION: (L-R standing) Tiffini Andorful, Ph.D., senior schools manager, Everfi; Katherine Rowley, vice president/Lawrence branch manager; Kimberly Dargay, vice president/Hamilton branch manager, and Kristin Bachik, vice president/Ewing branch manager present a financial literacy workshop at Foundation Collegiate Academy in Trenton this week. 

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About First Bank

First Bank (www.firstbanknj.com) is a New Jersey state-chartered bank with ten full-service branches in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Randolph, Somerset and Williamstown, New Jersey, and Trevose, Pennsylvania. With $856 million in assets as of December 31, 2015, First Bank offers a traditional range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”