The NBC 10 Money Watchers
put a group of local teens to task, testing their knowledge of how much items
cost and whether or not they know how to budget.
The teens, from the
Providence Youth Center, had some financial coaching before.
We chose items teens eat,
drink and use to test their knowledge including: a large cheese pizza from
Pizza Hut, a gallon of milk, an iPhone and a movie ticket.
For a pizza that cost
$10.80, the teens guessed between $7 and $11.
For a gallon of milk that
cost $2.99, the teens guessed between $2.50 and $5.
An iPhone 5 with an AT&T
contract, which costs $200, they guessed between $300 and $500.
And a ticket to see the
movie "Argo" at the Providence Place Mall, which cost $10.75, the
teens guessed it would cost between $8 and $10.50.
Recent surveys, like one
done by Charles Schwab, show that nearly 60 percent of teens between the ages
of 16 and 18 years old, claim to know how to budget their money. It also
shows that more than 60 percent claim to know how to shop for the best
deals. This comes as 80 percent of teens report believing that the
recession is not over and their family has been impacted by it.
"I have a
budget. A mental one. Just knowing what I want to buy and do I need
it or do I just want it," one teen told NBC 10 News.
The teens we spoke with at
the Providence Youth Center tell us they care about how they spend their
money. They save. A few have checking accounts. Others have
already started savings accounts.
"Basically we've been
learning how not to be selfish and to think about what are choices which we
make now how they will affect us in the future," a teen told NBC 10
News. "Like if we want something really bad we have to learn to
discipline ourselves and wait for it instead of automatically wanting to go and
spend all of our money out as soon as it gets in our hands."
"They're very
impressive and definitely they've learned a lot here, but also serve as leaders
for their peers in their community as well for those that may not know about
financial literacy or have the skills that they do," said Ellen Darling of
the Providence Youth Center.
