UC launches Web site to teach teens financial management

A new Web site for teens, “Money Talks, Should I be Listening?” was launched in December in English and Spanish by UC Cooperative Extension to present sound financial information to “Generation Y,” a savvy and sophisticated group that spends lots of money.

According to Teenage Research Unlimited, 12- to 19-year-olds purchased $155 billion in goods and services in 2000. However, surveys find their financial literacy is low.

Problems can mount as teens reach their 20s, according to Karen Varcoe, the human resources program leader for the UC Division of Agriculture and Natural Resources.

“When teens go on to college or get out on their own, they often have easy access to credit. Since many don’t know how to use the credit, they find themselves over extended. There are a lot of bankruptcies in that age group and some suicides when young adults feel they have too much debt,” Varcoe said. “The savings rate in America is at an all-time low. Many people don’t know how to develop a budget based on their values and goals.”

These facts set the UC Cooperative Extension “Money 2000+ for Teens” workgroup in action. They started by asking teens what they wanted to know about money management. Focus groups and surveys revealed a fascinating picture of Generation Y.

“It was surprising to see that a large percentage of the teens were interested in family well being,” said workgroup chair Paula René-Fitch, the UCCE nutrition, family and consumer sciences advisor in Imperial County. “Teens contributed to family finances. They are not as self-centered as many adults think.”

However, the teens were more interested in learning “how to get credit” than about “what credit is” and the consequences of bad debt. They wanted to learn how to best buy a car, clothing and personal items. About a third also realized they need to know how advertising makes consumers spend. Adults who work with teens were also surveyed to determine what they perceive to be teens’ financial knowledge needs.

The workgroup’s first project was four newsletters written by San Luis Obispo County director Shirley Peterson and her teenage daughter Katherine. The text is upbeat, the artwork colorful, the advice practical.

“Let’s say that buying lunch out costs $5 a day. You will save $10 a week or about $40 a month if you bring your lunch twice a week,” suggests the “Savings Made Simple” newsletter.

The newsletters – on car costs, money personality, saving strategies and shopping – include quizzes, informational articles and games. They were designed to be used at schools and after-school programs – the places where the teens said they wanted to learn.

The UC Division of Agriculture and Natural Resources funded the development of a four-minute companion video. With the moving, angled video shots that have become the mainstay of teen programming, two hip teens share ways to save money.

“Savings is always easier when you see it as a way to make your dreams come true,” says host

Danielle Diaz as she dangles a leg in a resort swimming pool. Diaz and co-host Jason Nicholson outline money-saving ideas ranging from watching matinee movies to buying used CDs.
In the Spanish version, Diaz and Jason Hernández give the video Latino flair. Fast-paced, person-on-the-street interviews of Latino teens share money-saving advice that includes quitting smoking, collecting loose change and buying clothing on sale.

The video and newsletters were useful training tools, but wrapping them together and making them widely accessible required an Internet presence. A Chase Manhattan Foundation grant provided the funding for a state-of-the-art Web site, with graphics and sounds to draw in an audience raised with MTV and computer games. Interactive activities and an “Ask $am” advice column – Pregúntale a $am in Spanish – were added.

The “Values Game,” for example, is a quiz that helps teens determine their “money personality.” By placing 25 statements in a bin titled “I agree” or “I disagree,” the Web site determines whether the player’s money personality leans more towards security, fulfillment, status, self-indulgence or indifference.

Another game, “What’s Your Financial IQ?,” runs through a series of true or false statements, then calculates the number answered “correct.” For example: “It doesn’t matter what kind of car you drive, insurance is just high for teenagers.” (False.) “It’s a good idea to leave a small balance on your credit card.” (False.)

Finally, a password-protected section of the site is available for “teachers only.” Teachers can request a password to access leaders guides, pdf versions of the newsletters, research reports, the Money Talks order form and financial education links of interest to teachers.

The Money Talks Web site is at http://www.moneytalks.ucr.edu.

(December 2002/January 2003)

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