Jump$tart survey

Early in 2004, the national Jump$tart Coalition commissioned and administered a survey of financial questions among high school seniors.

The survey consisted of 52 questions, given to 4,074 high school seniors in 215 schools nationwide. Topics included insurance, debt and money management strategies.

In early April 2004, the results of the surveys were released. Nationwide, students answered 52.3 percent of the questions correctly. That score is up from 50.2 percent in 2002 and 50.9 percent in 2000.

Nearly 53 percent said they would have no liability if their credit card were stolen and a thief ran up a $1,000 bill. Only 18 percent knew they would have to pay $50. Nearly 79 percent were right in saying the primary sources of income for most people age 20 to 35 are salaries, wages and tips.

Only 17 percent correctly said that stocks likely would offer the higher growth over 18 years of saving for a child's education. Almost 80 percent thought a U. S. savings bond or a savings account would offer the highest growth.

A little more than 34 percent correct said that retirement income paid by a company is called a pension. Nearly 63 percent thought it was called Social Security or a 401(k).

Previous surveys were done in 1997, 2000 and 2002 by the Coalition. The researcher for all four studies was Dr. Lewis Mandell, professor of finance at the University of Buffalo School of Management. Scores have dropped for each survey until this year's - some reason to be hopeful for students across the nation.

"I believe this improvement, as small as it is, is the beginning of something because I think people are finally beginning to pay attention, " Mandell said, "But it probably will take a long time to turn around."

Results in Utah
Participants in Utah answered 48.8 percent of the questions correctly.

Comment

Federal Reserve Chairman Alan Greenspan, has long advocated that Americans, especially, young people, get a better grip on fundamental money matters. Greater financial literacy in this country, he says, is especially important given the ever-expanding financial choices facing consumers.

Greenspan says improving basic financial education at the elementary and secondary school level would help give young people a foundation that could go a long way in allowing them to avoid financial pitfalls later in life.

The survey was underwritten by Merrill Lynch.