The Young and the (Financially) Reckless: Marketers Cultivate Today's Youth Because They Represent Tomorrow's Customers. Unfortunately, Many Children Are Clueless about Basic Money Issues Such as Budgeting and Managing Debt. (Fundamentals)

By Cole, Susan | ABA Banking Journal, March 2002 | Go to article overview

The Young and the (Financially) Reckless: Marketers Cultivate Today's Youth Because They Represent Tomorrow's Customers. Unfortunately, Many Children Are Clueless about Basic Money Issues Such as Budgeting and Managing Debt. (Fundamentals)


Cole, Susan, ABA Banking Journal


As they turn their attention increasingly to their financial institution's next-generation customers, marketers are faced with some unpleasant truths:

* The average grade among 12th graders on a recent test on personal-finance basics was 52 percent, a failing grade, according to a recent JumpStart Coalition survey.

* More than 60 percent of high school students receive no formal financial education.

* The average credit-card debt of teen-agers rose a staggering 300 percent from 1990 to 2000.

These statistics suggest that, in order to become responsible consumers of financial services, young people need to learn more about money, budgeting, debt management, basic banking, and the wise use of credit cards--in other words, elementary personal-finance skills. Federal Reserve Board Chairman Alan Greenspan recently reported to Congress that, "Improving basic financial education at the elementary and secondary school level is essential to providing a foundation for financial literacy that can help prevent younger people from making poor financial decisions that can take years to overcome."

"Consumers need our help more than ever before. Financial matters are significantly more complex than they were just a decade ago," says Lynda L. Glass, senior vice president of retail banking at Adams County National Bank, Gettysburg, Pa. She is also chairman of the ABA Education Foundation.

For bankers who are interested in creating a financial literacy program for their community, here are seven suggested steps.

Decide your goals. Upgrade marketing of bank products and services? Enhance your bank's image? Enhance your CRA compliance? As banks begin to offer more investment products, they are finding that one way to market them is to educate targeted customer segments about their value and proper utilization. Many banks undertake an educational program to get their name in front of a community and to show that they are "good neighbors." While Providing education will not change your CRA rating, it is possible to use consumer-education programs to enhance your CRA efforts.

Determine how much money, time and staff you are willing to devote.

Depending on your goals, the program may be centered in one department or it may be a bankwide effort. The bank can save money by sponsoring a developed program that is a set length of time (Examples: Junior Achievement has 13-week programs for $500 and up. The ABA Education Foundation has a five-lesson program called "In Charge," that costs $55 for ABA members.)

Talk to people in the community to find out what they need from a consumer education program. Depending on whom you are trying to reach, you may want to talk with school administrators, community group and nonprofit leaders.

Begin to build. This step does not mean that your bank has to develop all the materials you will use or design a completely original program. Consider your goals, budget and how much time the bank is willing to put into this program. Some larger banks choose to design their own original educational program. Other banks prefer to donate materials or staff to ongoing educational efforts. While this choice also can provide good publicity and bring in new bank customers, it takes less staff and is usually much less expensive. Partnering with outside organizations is a win-win situation because it helps raise visibility of all participants. When looking for a partner, identify other businesses interested in the youth market. Don't forget to approach your kids' schools!

Market the program. Let the community, specifically the group you've targeted, know that your bank is offering this program. Tell these people how they can take advantage of it. If, for example, you are offering presentations to schools, send letters to school principals or to teachers of the subject area your program will cover.

Monitor progress. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Young and the (Financially) Reckless: Marketers Cultivate Today's Youth Because They Represent Tomorrow's Customers. Unfortunately, Many Children Are Clueless about Basic Money Issues Such as Budgeting and Managing Debt. (Fundamentals)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.