Thanks to the fact that most teens rely on their uninformed peers to answer their pressing financial questions, there is plenty of misinformation passed around which makes it even harder for teens to get the straight facts about money and other personal finance topics like credit scores and banking.
To address this problem the Consumer Federation of America and FoolProofMe.com have gathered the Top 10 money myths held by teens.
Top 10 Money Myths Held by Teens:
- I don't have to worry about credit at my age.
- Bad credit can't keep me from getting a job.
- All loan companies have the same rates.
- All credit cards are alike.
- The job of financial advertising is to tell the truth.
- It's OK to bounce a few checks.
- It's OK to make minimum payments on a credit card.
- Paying late occasionally can't hurt my credit.
- Fine print isn't important.
- Young people don't have credit scores.
Thankfully, even parents who don't feel confident in their ability to provide personal finance skills to their children can fall back on a program like FoolProofMe.com. As Steven Brobeck, Executive Director of CFA, told the press today, "Parents can play the most important role in teaching their children about money." Don't let a lack of personal finance knowledge or a lack of confidence stop you from teaching your children about money.
FoolProof stands out from other personal finance literacy programs by presenting the message in a fast-paced video series. Unlike other programs, the message presented by FoolProof is put together by young people like Will deHoo, the 29-year-old CEO of FoolProof, who strive to present personal finance knowledge in an engaging format.
I can't stress how important it is for teens to complete a program like FoolProof before they head off to college and start making financial decisions, and mistakes, which will affect the rest of their lives. Everyone likes to think of college as a place where young people can learn from a mistake without"real world" consequences, but ask any college student; money mistakes made in school will follow you around for the next 5, 10 or even 15 years.
If you want to learn more about FoolProofMe.com check out WalletPop's look at the various FoolProof programs, which includes sample videos, to see which would be the right fit for your family.