A new nationwide survey shows that, for the first time since 1997, high school students are reversing declining scores and demonstrating more ability to manage financial resources such as credit cards, insurance, retirement funds and savings accounts.

Conducted for the Jump$tart Coalition for Personal Financial Literacy and sponsored by Merrill Lynch, the survey offers responses from more than 4,000 high school seniors in 33 states. This year, students answered 52.3 percent of the questions correctly, compared with 50.2 percent in 2002 and 51.9 percent in 2000.

“I am encouraged that the survey results show the downward trend reversing among high school seniors as they become more aware of the need for financial literacy in a competitive job market,“ said the study’s researcher, Professor Lewis Mandell of the University of Buffalo School of Management.

The survey, conducted from December 2003 through February 2004, consisted of a written 45-minute examination at 215 schools across the U.S.

Survey data also point to the positive influence of mandatory money management courses in high school. Of those students who took a full semester of money management courses, the students attending required classes did better (54.1 percent) than those where the course was required only for some students (50. 6 percent) and those where it is an elective (52.7 percent).

“Interest in teaching financial literacy in public schools surged this year with 24 state bills, resolutions and proclamations introduced in the first quarter of 2004 alone,” said Dara Duguay, executive director of the national Jump$tart Coalition. “Congress also established a new Financial Literacy and Education Commission to coordinate federal agencies’ financial education efforts, so we hope this added emphasis on the need for Americans to become financially literate will translate into increased interest in our nation’s schools.”

Other findings from this year’s study include:

• 55 percent of self-described, college-bound seniors answered the questions correctly, versus 41.9 percent of those who plan no further education.
• 58.3 percent said they learn their money management skills at home; only 19.5 percent said they learned at school, and 17.6 percent from experience.
• Students performed much better on questions about income (62.9 percent) and spending (55.4 percent) than they did about money management (45.4 percent) and saving (41 percent).
• Approximately 68 percent of students reported they do not use a credit card. About 11 percent of students have their own credit card, while 15.7 percent use their parents’ card(s).
• More than 43 percent of those surveyed have their own ATM card, compared with 35.9 percent in 2002, 31 percent in 2000 and 31.5 percent in 1997.
• There was virtually no difference in performance by gender, with 52.4 percent of male students answering questions correctly, and 52.2 percent of female students doing the same.
• Nearly 78 percent of the students have a savings and/or checking account with a bank. Students who have no bank account scored lower on the test than those who do.

A copy of the survey questionnaire is posted on the Jump$tart Coalition’s Web site at www.jumpstart.org in the “Downloads” section.