MCLEAN, Va.--(BUSINESS WIRE)--July 17, 2006--Capital One
Financial's (NYSE:COF) sixth annual back to school shopping survey
shows that parents continue to miss the mark when it comes to talking
to their kids about the basics of money management. This year's survey
of 1,000 parents and teens finds that teens are eager to learn about
managing their money wisely but aren't getting the basics at school -
only 14 percent of them have taken a class on the topic - and many
said they would prefer to learn about money from their parents. At the
same time, 79 percent of parents see themselves as positive money role
models for their kids, yet only a small percentage are taking
advantage of day-to-day learning opportunities to arm their teens with
practical money skills.
- Forty-nine percent of teens are eager to learn more about
money management - 35 percent would like to learn from their
parents. When asked about the topics they'd most like to learn
about, teens express interest in checking accounts, budgeting,
investing, saving, and financing for large purchases.
- Only 18 percent of parents are discussing back to school
budgeting - a decline from the 24 percent who did so last
- Only 43 percent of parents have discussed the importance of
needs versus wants, compared to 64 percent who did so last
year; and a surprising 42 percent of parents have not taken
any steps whatsoever to discuss financial basics.
"The findings of this survey tell us that teens want to learn
about money from their parents and that they are willing to listen to
them," says Diana Don, Director of Financial Education at Capital One.
"As important a topic as it is, basic money management unfortunately
is not always a subject that's being discussed in school, so it's
important for parents to take the lead and use opportunities like back
to school shopping to work with their teens and help them sharpen
their financial skills."
Capital One's survey also found some surprising facts about back
to school shopping lists and spending levels.
What are they buying?
While traditional school supplies such as notebooks, backpacks,
pens and pencils, and clothes top back-to-school shopping lists this
fall for parents and teens, purchasing for electronic items has
increased slightly. Ten percent of parents and teens expect to
purchase hand-held electronics such as PDAs or iPods, compared to just
four percent who planned to purchase the items last year. Parents and
teens differ slightly on computer spending - six percent of parents
expect to shop for a new a computer this year, while eight percent of
kids hope to do so.
Are parents going with their teens to shop? How much are they
Eighty-seven percent of teens expect their parents to join them on
back to school shopping trips. This year, 53 percent of parents expect
to spend more than $125 on back to school essentials for their kids,
while 26 percent plan to spend less than $100. Overall, the majority
of parents (74 percent) are spending the same amount as last year;
however, 20 percent plan to spend more. Most plan to pay with cash (75
percent) and credit (26 percent).
Are teens contributing to the bill?
When it comes to sharing the cost of back to school shopping, 53
percent of teens plan to contribute to the bill, with almost 60
percent responding that the money will come from job earnings. Teens
say the remainder will come from an allowance or savings (31 percent)
or a cash gift (17 percent).
Who's ahead of the financial curve - teen girls or boys?
Teen girls are more likely to contribute to back to school
shopping - 58 percent of girls will contribute to the bill versus only
49 percent of teen boys. Survey findings also indicate that teen girls
tend to think ahead - 77 percent of teen girls are eager to learn
about financing for large purchases such as a car or home, compared to
63 percent of boys.
Financial education: What parents and teens can do to shop smart
"When it comes to educating kids about finance, the most important
thing parents can do is get involved," added Don. "There is a variety
of free, online information parents can use to get started."
Capital One also offers parents these tips for working with their
child to develop good money management skills:
- Make back to school shopping a family affair: It's a great
opportunity for kids to learn valuable hands-on lessons from
- Do your homework: Talk to teachers in advance and try to get a
list of required school supplies so you can buy in advance
(maybe even on sale).
- Crunch numbers together - establish a budget: Determine how
much you're able to spend in advance and stick to the amount.
- Make a list: Prepare your shopping list in advance. Try to
distinguish between "needs" and "wants" on the list and
prioritize the needs first!
- Shop smart: Make sure you shop around for the best price and
the best quality. You want purchases to last.
- Get more tips (if you need them): Capital One offers a number
of resources on budgeting and savings and has partnered with
the national consumer organization Consumer Action to create a
complete guide for parents called Talking to Teens about
Money, available at www.money-wise.org.
For additional help, parents and students can visit the Jump$tart
Coalition for Personal Financial Literacy home page at
www.jumpstart.org and search the "clearinghouse" for financial
curriculum and education materials.
For the Capital One Study, Braun Research was engaged to conduct
1000 interviews in 880 households with 500 parents of teenagers aged
13 to 17 and 500 teenagers aged 13 to 17 across the United States.
Surveys were conducted by telephone from June 28th - June 29th, 2006.
The margin of error for the interview is plus or minus 3.33 percentage
points. Interviews were monitored at random. Sampling for this study
was conducted across the United States using a national probability
sample of all exchanges and area codes of households with someone
between the ages of 13 and 17 living there. All interviews were
conducted using a computer assisted telephone interviewing system.
Statistical weights were designed from United States Census Bureau
About Capital One
Headquartered in McLean, Virginia, Capital One Financial
Corporation (www.capitalone.com) is a financial holding company, with
more than 316 locations in Texas and Louisiana. Its principal
subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto
Finance, Inc., and Capital One, N.A., offer a broad spectrum of
financial products and services to consumers, small businesses and
commercial clients. Capital One's subsidiaries collectively had $47.8
billion in deposits and $103.9 billion in managed loans outstanding as
of March 31, 2006. Capital One, a Fortune 500 company, trades on the
New York Stock Exchange under the symbol "COF" and is included in the
S&P 500 index.
CONTACT: Capital One Financial Corporation
Diana Don, 703-720-2371
SOURCE: Capital One Financial Corporation