Tuesday, June 28, 2011

Teens, Mistrust and Financial Literacy

There is a fascinating study out today of teens, their financial literacy and their attitude towards financial institutions. The study finds a lot of mistrust among the demographic towards financial institutions, and it concludes the industry needs some good PR and a whole lot of support for financial literacy programs.

Read more here.

Key graph:

"This isn't just about bad PR for the industry. Adolescents with this level of distrust of financial institutions become adults who don't open bank accounts, invest for retirement, insure against risks or finance important purchases like college educations or homes. This type of financial disengagement could push a generation of consumers away from mainstream institutions and toward risky alternative service providers or toward simple inaction, which has its own perils."