Making the money… You can beat the average! When asked about basic financial concepts, high school seniors correctly answered only 48% of the questions. College students didn’t fare much better, with college seniors scoring 65%.1 So, here’s how you can make the grade with flying colors! 1. You need to develop realistic expectations about money. Have you heard that ‘Money doesn’t grow on trees’? When people don’t earn their money and aren’t responsible for paying for their own expenses, it would be unrealistic to expect them to know what things cost. Typically, even when young people earn their own money they are more likely to spend it on day-to-day items and entertainment.2 Usually when teens save, it is for a short-term goal like something they want to buy within the year. When you are on your own you will be more successful if you can think more long-term. What would you guess most teens spend their money on? Girls: ..................................................................................................................................... ............................................................................................................................................. Boys: ..................................................................................................................................... ............................................................................................................................................. Imagine that you just discovered a tree that grew money. What would you do with this “Money Tree”? How much would such a tree be worth? 1 Mandell, Lewis. The Financial Literacy of Young American Adults. Results of the 2008 National Jump$tart Coalition Survey of High School Seniors and College Students. Jump$tart Coalition for Personal Financial Literacy, 2008. Print. 2 RAB Instant Background Report For Teen Market. Rep. Radio Advertising Bureau, 2004. Web. LESSON 1 | WHY DOES MONEY MATTER? | 3