Hands-On Banking Classes
Submitted by Phyllis Zalenski, Amy Fuglestad Nahnsen, and Teresa Perry

Problem:
Teens aged 12 to 17 are a major consumer market with considerable spending power. The average adolescent spends about $264 a month. Ten percent of teens 12 to 19 have their own credit card. A financial institution in Ottumwa recognized the need to provide financial education to young teens and approached ISU Extension to implement programming through the school system.

Response:
Through a strong partnership of ISU Extension, the middle school, and representatives of various financial institutions, a series of five financial classes were offered to 332 7th graders through their life skills class at the Ottumwa middle school. Topics included comparison shopping, budgeting, checking and savings accounts, and credit.

Impact:
A pre-post test was given to evaluate students' financial knowledge and behavior. Pre-tests were returned by 303 students and post-tests by 310. The most noticeable changes in knowledge occurred in correct responses to the following statements:

  • Financial institutions pay you for keeping money in a savings account - 64% on the pre-test vs. 85% on the post-test.
  • Paying the minimum payment on a credit card is the cheapest way to pay it off - 59% on the pre-test vs.78% on the post-test.

In measuring behavior changes, students indicated these actions on the post-test:
I have started
I definitely will
I might
Shop around for the best deal
15%
11%
17%
Set specific financial goals
16%
20%
28%
Think about needs and wants
19%
16%
17%
Use a budget
15%
17%
26%
Track my spending
19%
22%
17%
Save money
11%
17%
8%
Have a savings account
5%
23%
21%

Some other actions students indicated they have taken included:

  • Buy cheaper items that are the same as the most expensive ones.
  • Trying not to think about buying when I go to the store.
  • Spend my money wisely.
  • Keep it up so when I get older I can get a house.
  • Looking into getting my sister started on a savings account.
  • I'm spending less money on frivolous things.

Comments about the classes:

  • It was fun and I learned so much and I can't wait to start saving more of my money. Thanks a bunch.
  • This is a great class. It's fun. You guys are really nice and helpful.
  • I think it's a wonderful program. It helped me understand money better.
  • I have learned a lot! I want to work at the bank!
  • I think this is a good class and keep doing it.
  • The class was awesome. It was fun to learn about saving money.
  • I learned a lot about banking and maybe I can save money now.
  • I had a fun time learning new things about banking.
  • This class is perfect. I think all the 7th graders next year shall try this.
  • It's cool and helped with math.

Contact:
Phyllis Zalenski
Family Resource Management Specialist
Iowa State University Extension
605 E. Main, Anamosa, IA 52205
Phone 319-462-2791; Fax 319-462-4572
Email zalenski@iastate.edu


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Last update: January 31, 2006  
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