FOR IMMEDIATE RELEASE: August 12, 2008
FOR MORE INFORMATION:
Angela C. Waugaman
For Visa Inc.
+1-703-683-5004 ext. 133
Most Parents Talk to Their Kids About Using Money Wisely, Visa Study Finds
Free, Online Financial Education Program Features Back-to-School Budget Calculator and Money Management Tips Parents Can Use
San Francisco – August 12, 2008 – According to a study just released by Visa Inc., 85% of parents surveyed with children under 18–years–old say they talk to their child regularly about money management. One–third (34%) of parents with children under 18 say they talk to their child on a daily basis about using their money wisely. Another three in ten (31%) talk to them at least once a week, 14% at least once a month and less than one in ten (6%) say a few times a year. However, 16% report never talking to their children about using money wisely.
"It is encouraging to know that parents are sitting down to discuss the basics of money management with their children. Financial education must begin at home," said Jason Alderman, director of financial education at Visa Inc. "We hope that parents will use opportunities like back–to–school shopping time as a way to begin or continue the money conversation because learning about how to budget, save and spend responsibly is critical for young people."
The survey also found that about the same number of moms (35%) as dads (33%) talk to their children every day about using money wisely. Slightly more dads (34%), however, have conversations at least once a week compared to moms (28%), and at least monthly talks are fairly even between moms (15%) and dads (12%). An almost equal number of dads (15%) and moms (16%) never talk to their children about money skills.
In response to the need for greater financial literacy among young people, and as part of a decade–long commitment to improving access to financial education for all, Visa offers parents, students and teachers a free, award–winning, online financial education program called Practical Money Skills for Life (www.practicalmoneyskills.com).
As part of the Practical Money Skills for Life program, Visa has developed a back–to–school budget calculator as well as information on back–to–school budgeting basics. The following list of budgeting tips has been created specifically for parents to share with their children:
- Set a realistic back to school budget before you go shopping.
- Have your kids prepare a budget with you.
- Take a print out of your estimated budget with you when shopping and have your child enter in all of the actual expenses.
- Encourage children to follow the budget. Stress that getting a more expensive item might mean sacrificing something else.
- Encourage kids to consider ways to cut costs and manage cash flow, like clipping coupons, looking for sales, or buying supplies each semester.
- Teach your kids to comparison shop to avoid impulse buying or paying for overpriced items.
- Differentiate between "needs" and "wants." Encourage children to contribute their own money to fill the gap between what they "need" and what they "want."
- Tell kids that if they come in under budget, you will split the savings with them.
- Continue the budgeting lesson by starting kids with an ongoing monthly budget.
- If your kids have a checking account, encourage them to keep up all cash, card, or check deductions in their checkbook register.
Visa also runs What's My Score (www.whatsmyscore.org), a leading higher education consumer awareness program. The website guides college students through the ABC's of a FICO credit score, from factors that can lower a score to ways on improving it, at no charge.
About Visa Inc.
Visa operates the world's largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 170 countries. For more information, visit www.corporate.visa.com.
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