Education & Distance Learning Enthusiasts- Merrill Lynch-Sponsored Survey Shows Financial Literacy Improving Among Nation's High School Seniors

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Merrill Lynch-Sponsored Survey Shows Financial Literacy Improving Among Nation's High School Seniors

Business Wire - April 1, 2004

Business Editors

NEW YORK--(BUSINESS WIRE)--April 1, 2004

Findings Mark One-Year Anniversary of Investing Pays Off(R),

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 percent of the questions correctly, as compared with 50.2 percent in the similar 2002 survey and 51.9 percent 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 percent) than those where it was required only for some students (50.6 percent) and those where money management classes were electives (52.7 percent).

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 is 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 percent) and spending (55.4 percent) than they did about money management (45.4 percent) and saving (41.0 percent).

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 percent said skills are learned

at home, versus 19.5 percent of students who said they learn

such skills at school, and 17.6 percent from experience. Of

the students whose parents have college degrees, 55.4 percent

answered the questions correctly, versus 44.6 percent 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

percent of self-described, college-bound seniors answered the

questions correctly, versus 41.9 percent of the students who

plan no further education.

There was virtually no difference in performance by gender - with 52.4 percent of male students answering the questions correctly versus 52.2 percent of female students with correct answers. The average score for Caucasian students was 55.5 percent, compared with 48.3 percent for Asian Americans, 48.3 percent for Hispanics, 46.7 percent for Native Americans and 44.0 percent for African Americans. Students from the Northeast scored higher (56.5 percent) than students from the West (52.2 percent), the Midwest (52.4 percent), and the South (49.9 percent).

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 non-profit 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 US.

To reach the youngest audiences, ages three to six, 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 childcare 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 www.ml.com/philanthropy/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.ml.com

About Jump$tart

The Jump$tart Coalition for Personal Financial Literacy is a nonprofit organization that seeks to improve the personal financial literacy of young adults by developing, disseminating, and encouraging the use of standards for grades K-12; and by promoting personal finance education at home and in school. Jump$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.

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