Just 39 percent of 18 year olds say they are “knowledgeable about how to manage a credit card,” according to the latest Teens and Money Survey from financial services firm Charles Schwab. Just 32 percent say they are aware of how interest rates and fees for credit card accounts work. However, 74 percent also say they believe their parents or guardians taught them how to use such an account responsibly.
[Related: Marketing to Students: Should Kids (under 18) Have a Credit Card?]
This is a major change from the survey’s findings in 2007, when 43 percent said they knew how fees and rates worked, and 64 percent stated they knew how to manage a credit card, the report said.
“It seems clear that the great recession has changed the mindset of teens,” said Carrie Schwab-Pomerantz, senior vice president of Schwab Community Services. “It has given these ‘Recession Generation’ youth a deeper appreciation for what they have and how hard their parents work. This may be the silver lining to the economic downturn since it gives parents and educators an enhanced opportunity to communicate critical lessons about financial decision-making.”
The recession changed consumers’ attitudes towards spending on credit cards almost across the board, and many have made significant efforts to reduce their debts considerably.
[Resource: What the Credit CARD Act Means for the Under 21-Crowd]
You Might Also Like
As of early 2020, student loan debt in the nation had reached mor... Read More
August 26, 2020
Student Loans
Attending college or university is a dream for a ton of people. Y... Read More
August 4, 2020
Student Loans
As of February 2020, student loan debt in the United States reach... Read More
July 31, 2020
Student Loans