Financial education raises teens’ confidence

Financial education greatly helps young adults feel confident in their ability to manage their money, a Capital One survey finds.

Of the high school seniors surveyed, 75 percent who took a course and talked about money at home reported feeling optimistic that they could successfully handle their finances. On the other hand, 45 percent of the respondents who lack financial education said they didn’t think they would manage their finances well.

“Our survey clearly shows the value of financial education in helping young adults build confidence in their ability to manage money on their own,” said director of financial education at Capital One Shelley Solheim. “Most students report that their parents are their primary resource for information about personal finance.”

Learning how to handle money at an early age is crucial for developing long-term money management skills. By the time a person reaches college, they may already have dug themselves into a financial mess. A report by Sallie Mae found the average credit card balance on an undergraduate’s credit card was $3,173 last year. The majority, 82 percent, of students reported carrying a balance every month.