Junior Achievement of Southeastern Pennsylvania is getting teens ready for a successful financial future
By Samantha Bambino
The Times
June is here, which means millions of high school seniors across the country are tossing their graduation caps into the air. The transition into college is an exciting time that is met with many expectations for the parents of recent grads — helping them move into their dorm, assisting with the confusing financial aid process and, according to a recent study by Junior Achievement and American Honda Finance Corporation, buying their teen a car.
From Feb. 8–21, a survey was conducted by Wakefield Research among 500 teens ages 15–17, 500 young adults ages 18–25 and 500 parents with teen children ages 15–17 using an email invitation to the online survey. The purpose was to gauge financial readiness for a car by asking questions about insurance and monthly income. The results showed a major disconnect between parents and teens.
Nearly one-in-four teens (24 percent) expects a car or help paying for one after high school graduation. Seventy-six percent of teens ages 15–17 are confident they fully understand the financial responsibilities of owning a car, but 85 percent of parents disagree. Eighty-six percent of teens feel parents should help them with these expenses, and 91 percent of parents feel this assistance is unreasonable.
According to Paul Kappel, president of Junior Achievement of Southeastern Pennsylvania, education needs to take place, and this is where his organization is working to step in. Junior Achievement has been around nationally for 100 years and locally since 1951. JA’s mission is to help prepare young people to succeed in the global economy. Volunteers from large corporations and financial institutions have spoken to and helped 28,000 students in Pennsylvania and 4 million nationally so far this year.
JA services range from day-long visits from companies such as Lockheed Martin, who explain career paths in the field, to 15-week entrepreneurship programs with IKEA. In Bucks County last year, JA had 1,546 students participate in a program, with partner schools including St. Andrew’s School, Makefield Elementary School, Milford Middle School, Neshaminy High School, Palisades Middle School, Strayer Middle School and Upper Bucks High School.
Junior Achievement assists teens and parents in preparing for the future in three key areas. First, teens are able to determine their readiness for a car through an online financial test drive. They are then educated on how to be a sound driver. This includes education on how to plan a budget, how to choose the right insurance and an explanation of the large financial commitment they won’t experience again until buying a house. Second, JA My Way provides high schoolers with a self-paced online guide on transitioning to college, and includes resume building and interviewing skills. Third, JA gets the parents involved by helping them understand how to have a financial discussion with their teen.
“We encourage parents to have these conversations now before their kids make a decision that will end up hurting them,” Kappel said. “It’s a great way to prepare them for future financial security both on and off the road.”
If teens aren’t prepared for everything that’s involved with being a car owner, it can turn into a horrendous snowball effect if they miss a loan or insurance payment. JA helps to make them aware of everything for which they’ll be liable. According to Kappel, many don’t think about things such as gas and paying for broken parts, which can add up extremely quickly.
Junior Achievement is the world’s largest organization dedicated to inspiring and preparing young people to succeed in a global economy. Today, 122 individual area operations reach more than 4 million students in the United States, with an additional 5.8 million students served by operations in 123 other countries worldwide. Locally, Junior Achievement of Southeastern Pennsylvania impacts more than 34,000 students.
To learn more, visit japhiladelphia.org. To take the financial test drive, visit juniorachievement.org/web/ja-usa/honda-financial-test-drive. To access JA My Way, visit jamyway.org. ••
