Just 17 percent of teens know how to manage money

Published: Monday, Aug. 27 2012 2:09 p.m. MDT

Zions Bank's executive vice president Rob Brough teaches kindergarten students about saving, spending and donating money to charity in honor of National Teach Children to Save Day at Madeleine Choir School in Salt Lake City on April 23. A new survey indicates teens need more direction in managing their money.

Kristin Murphy, Deseret News

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Most teenagers don't know how to manage money, according to a recent study by ING DIRECT USA and Capital One.

Just 17 percent of teens said they know a lot about how to manage money, according to the survey. Approximately 24 percent of teens incorrectly think that using a debit card is borrowing the bank's money instead of using their own. Overall, 44 percent get most of their money from a job outside of their home, while 30 percent get it from an allowance.

Parents have their hands full when it comes to preparing their children to handle money responsibly, the survey indicates.

"A parent's role in setting a financial example for their children is critical," said Jim Kelly, head of Direct Bank, ING DIRECT USA, in the news release. "Yet many parents feel unprepared to set an example, and that is why we've developed tools such as Plant Orange and the MONEY account to help get the conversation and habits started as early as possible."

Almost 12 percent of teens said they don't get any help at home with managing their money, according to the survey. Just under 15 percent of teens ages 15 to 17 said they don't get any help at home on managing finances. About 52 percent of teens said the majority of their financial learning happens at home. But 35 percent of parents said they're prepared to talk to their children about drugs and alcohol while just 26 percent are prepared to discuss finances with their teens.

EMAIL: bbullock@desnews.com TWITTER: @BullockBlaze

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