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Breaking News
Release date: December 1, 2004
MERRILL LYNCH-SPONSORED SURVEY SHOWS FINANCIAL LITERACY IMPROVING AMONG NATION'S HIGH SCHOOL SENIORS
Findings Mark One-Year Anniversary of Investing Pays Off®, Grassroots Youth Education Program
A nationwide survey conducted by the Jump$tart Coalition for Personal Financial Literacy and sponsored by Merrill Lynch
(NYSE: MER) reveals that for the first time since 1997, high school students are reversing declining scores and
are demonstrating increased aptitude and ability to manage financial resources such as credit cards, insurance, retirement
funds and savings accounts.
The comprehensive survey of more than 4,000 high school students in 33 states measured 12th graders' level of knowledge
of personal finance basics. On average, students who participated in the survey answered 52.3% of the questions correctly,
as compared with 50.2% in the similar 2002 survey and 51.9% in 2000.
Key to the students' improvement was preparation through money management courses, a cornerstone strategy in Merrill
Lynch's drive to enhance financial literacy among underserved youth. The questionnaire revealed that students who took a
full semester of money management courses did better (54.1%) than those where it was required only for some students
(50.6%) and those where money management classes were electives (52.7%).
The survey results mark the one-year anniversary of the development of Merrill Lynch's Investing Pays Off: It's Never
Too Early To Start! curriculum and video series for elementary, middle and high school students. This and other educational
resources delivered by Merrill Lynch volunteers are part of the company's long-term global educational campaign to enable
youth from underserved communities to acquire the skills and knowledge they need to compete and succeed in the global
marketplace. Volunteers from within and outside Merrill Lynch have spent thousands of hours already with youngsters delivering
the 15-course curriculum at schools, community centers, places of worship and Merrill Lynch offices around the world.
"The Jump$tart Coalition survey is a tremendous step forward in measuring, documenting and improving youth financial literacy,"
said First Vice President Eddy Bayardelle, head of Global Philanthropy at Merrill Lynch. "We are proud to partner in this
survey, whose goals and measurability are consistent with programs such as Investing Pays Off. As financial products and choices
for America's youth continue to increase, so should the knowledge and learning that enables them to make important life decisions."
Commenting about the Jump$tart Coalition survey results, Professor Lewis Mandell, Ph.D., professor of finance and managerial
economics at the University of Buffalo School of Management and researcher for all four Jump$tart Coalition studies, added, "If
parents, educators and school administrators continue to work together and emphasize the need for sound money management
skills, we will likely see scores improve in the years ahead."
Mr. Bayardelle added, "Our goal is to see the numbers move up — and programs such as Investing Pays Off address underserved
youth who are most at-risk and therefore most in need of these skills."
Survey questions from the 2004 Jump$tart Coalition survey were divided into four categories: income, money management, saving
and spending. High school seniors did a far better job of correctly answering questions about income (62.9%) and spending (55.4%)
than they did about money management (45.4%) and saving (41.0%).
Other findings:
- Parental involvement plays a great role in the financial education and literacy of young people, as the vast majority of students
say they are learning most of their money management skills at home.
- Of the students surveyed, 58.3% said skills are learned at home, versus 19.5% of students who said they learn such skills at
school, and 17.6% from experience. Of the students whose parents have college degrees, 55.4% answered the questions correctly,
versus 44.6% of the students whose parents did not finish high school.
- Students who are planning to continue their education did better than those who aren't. The test results show that 55.0% of
self-described, college-bound seniors answered the questions correctly, versus 41.9% of the students who plan no further education.
There was virtually no difference in performance by gender — with 52.4% of male students answering the questions correctly versus
52.2% of female students with correct answers. The average score for Caucasian students was 55.5%, compared with 48.3% for
Asian Americans, 48.3% for Hispanics, 46.7% for Native Americans and 44.0% for African Americans. Students from the Northeast
scored higher (56.5%) than students from the West (52.2%), the Midwest (52.4%) and the South (49.9%).
The Jump$tart survey, conducted this past December, January and February, consisted of a written 45-minute examination
administered to 4,074 12th graders in 215 schools across the United States.
"Investing Pays Off" Curriculum
Launched April 1, 2003, in honor of Financial Literacy for Youth Month, the Investing Pays Off: It's Never Too Early to
Start! curriculum was created in partnership with the National Foundation for Teaching Entrepreneurship, a 16-year-old nonprofit
dedicated to serving 65,000 youth on the principles of the business world.
The curriculum is available in three levels, elementary school, middle school and high school, and revolves around 15 core
principles, including:
- How to manage your time, money and priorities
- Exploring life and career skills, and looking into being an entrepreneur
- Understanding how the stock market works and examining investment options
- Establishing good credit, saving for college, and embracing the value of home ownership
A companion video series can be viewed on PBS affiliates across the United States.
To reach the youngest audiences, ages 3 to 6, Merrill Lynch teamed up with Sesame Street. An activity book and interactive website
engages kids and their caregivers to learn through play about delayed gratification, patience, money matters, value and responsibility.
Investing Pays Off can be used during in-school, after-school, evening and weekend programs at schools, community centers,
nonprofit organizations and child care centers. IPO activities can include making presentations, hosting workshops, inviting youngsters
to Merrill Lynch offices, accompanying groups on field trips to trading floors or famous or important landmarks such as Wall Street, or
arranging for them to meet accomplished entrepreneurs or other role models.
The interactive website experience, designed for Merrill Lynch volunteers, parents, educators, community organizations and those
interested in obtaining timely information and tools to bring financial literacy home, can be accessed at
philanthropy.worldnet.ml.com/ipo.
About Merrill Lynch Philanthropy
Merrill Lynch was founded on the idea that the world is full of opportunity. Opening the door to that opportunity for underserved
children and youth is the focus of our global philanthropy. In 2003, the firm made grants of over $30 million to create a level playing
field for youngsters of all backgrounds to succeed. Merrill Lynch's flagship program, Investing Pays Off — or IPO — enables young
people to become financially literate and business savvy. The program strength lies in a free curriculum, the involvement of Merrill
Lynch volunteers and online educational resources at http://volunteer.worldnet.ml.com.
About Jump$tart
The Jump$tart Coalition for Personal Financial Literacy is a nonprofit organization that seeks to improve the personal financial
literacy of young adults by developing, disseminating and encouraging the use of standards for grades K through 12; and by
promoting personal finance education at home and in school. Jump$tart's mission is supported by 140 corporations, government
agencies, education associations and nonprofit providers of financial education across the United States. For more information,
visit www.jumpstart.org. This site offers teacher training and guest speaker locators, monthly mini-lessons, links to partner
organizations, and helpful tips on budgeting, saving and investing.
More Breaking News
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BizWorld describes Collaborate with a Cause December 3, 2002
Investing Pays Off honored by Jump$tart April 14, 2004
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