Northern VA Teens Concerned About Finances: Survey

• PHOTOS of the credit union inside Robert E. Lee High School in Springfield; photos courtesy of Apple Federal Credit Union

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FAIRFAX, VA —Northern Virginia teens are thinking longer-term about their financial health, as 95 percent believe saving money now for the future is important, a new survey by a local credit union shows.

In fact, a majority have their own savings account and understand the basics of saving, but they still remain concerned about being able to save enough to meet their goals, a news release about the survey states.

These are some of the findings of an online survey designed and administered by Apple Federal Credit Union this month to nearly 3,000 teenage students in Northern Virginia.

“It’s heartening to find so many teens recognizing the importance of savings as a key part of success,” Robert Sowell, vice president of Community Relations at Apple Federal Credit Union said, in the news release. “Instilling good financial habits and knowledge is critical for students as they prepare for their futures and learn to avoid financial pitfalls.”

The survey, according to the credit union, revealed that many students understand the basics of saving:

• 63 percent have a savings account in their own name
• 80 percent comprehend what it means to earn interest
• 61 percent know what compounded interest is.

However, the study showed 54 percent did not know how much interest they were earning on their account

Where teens' dollars comes from, and why they're saving

In terms of savings goals, nearly 78 percent reported saving a part of their gifts and paychecks. The top purpose for saving money was to help pay for college (65%), followed by buying a car (47%). Other reasons included to purchase school books (23%), electronics (28%), and a home (26%). Nearly 16 percent indicated that they were saving to help their family pay its bills. Even though most are saving, 75 percent are worried about not saving enough to achieve these goals.

Many students also had some knowledge about other ways to save money in addition to savings accounts. About half (55 %) recognized that certificates of deposit, annuities, bonds, mutual funds were other interest bearing savings tools. However, their understanding of these instruments was more limited as only 38 percent realized that they could lose part of their principal when investing in mutual funds, bonds, and stocks.

Students surveyed attend 22 local schools that have student-run Apple Federal Credit Union branches in their schools, including:

• Fairfax— Annandale, Robert E. Lee, Mount Vernon, Robinson
• Loudoun—Briar Woods, Potomac Falls, Stone Bridge, Tuscarora
• Prince William—Battlefield, CD Hylton, Freedom, Forest Park, Osbourn Park, Patriot, Potomac, Rippon Middle, Stonewall Jackson
• Stafford—Brooke Point, North Stafford
• City of Manassas – Osbourn
• City of Manassas Park - Manassas Park
• Winchester—James Wood

Methodology

The survey was administered to students in the 21 highs schools and one middle school in Northern Virginia where Apple has Student Run Credit Unions (SRCUs). These are actual working credit union branches run by students, for students and teachers in the public schools.

Students had the opportunity to participate in the survey between late April and early May, in financial literacy class, at the Apple Student Run Credit Union branches, and randomly in the cafeterias. Copies of the survey results are available upon request.

Worth noting is that 80% of the teens surveyed had taken a personal finance class. Virginia, Missouri, Tennessee, and Utah are the only states that require a personal finance class to graduate, according to Jump$tart Coalition, made up of 150 financial institutions, consumer groups and federal agencies.