Thrifty Thinking: Economics and Teens

New research recently released illustrates that teens believe economics education is important and also how they are struggling with concepts like "supply and demand" and the role of the Federal Reserve. A survey of 1,000 teens (ages 13-18) was conducted by Wakefield Research for Junior Achievement and the Charles Koch Foundation. Below and attached are the results. Among the most notable results:

• 41% of respondents could not identify the definition of “tariff,” including 36% of respondents who said that they had an entire economics course in school.
• 47% of respondents could not identify the definition of “supply and demand,” including 37% who said that they had an entire economics course in school.
• 81% of respondents could not identify the role of the “Federal Reserve,” including 76% who said that they had an entire economics course in school.

I was able to interview with Jack Kosakowski, President and CEO of JA.

Why is it important for teens to understand concepts such as supply and demand, tariffs, and the Federal Reserve?

The economy impacts all of us, but most people don’t have a strong understanding of what drives the economy. To be informed voters, consumers and citizens, it’s important that Americans gain a better understanding of the economic realities that affect their daily lives.

Why is there such a lack of knowledge, even among those who have taken an economics course?

Economics has been referred to as “the dismal science,” partly because it can be a dry subject to teach. As a result, many economics courses aren’t as engaging for students as they could be. What we did at JA is create a more interactive curriculum that presents economic concepts in ways that are easily understandable for today’s students. Our new JA Economics course also uses a blended-learning approach, so teens can interact with both traditional lessons and digital content for a more enriching experience.

How can parents encourage teens to be interested in finance and the economy?

There are many free resources online that parents can encourage their teens to explore. One of these resources is www.JAMyWay.org. It’s Junior Achievement’s free point-of-entry experience where teens can learn about financial and economic concepts, as well as explore various careers and learn what it takes to start a business.

What can parents do if they don't fully understand economics? 

Our research shows that parents are usually the first source kids go to for information when it comes to these kinds of topics. It’s okay for parents to say “I don’t know,” but it presents an opportunity for parents and their kids to learn together. Again, there are many free resources online and we encourage parents to take this opportunity to learn along with their kids.