Banking and Savings Most Popular Articles

  • cash payment
    5 Strategies to Pay for College Today|
    To help streamline your college banking and find the cash to pay for an education in today's economy, here are five methods and...
  • ATM
    10 Best Military Banks of 2015|
    A study investigated more than 30 military banks and credit unions, and came up with this top 10 list.
  • UsingATMs
    Top Five Military Banks and Credit Unions|
    If you're in the military or are a veteran and are looking for a bank, this list is for you.
  • 70 ways to save money
    70 Easy Ways to Save Money
    Jeff Rose
    Here are 70 ways you can save money in the four biggest budget categories: food, transportation, housing, and health.
  • Pros and Cons of Online Banking
    Consumers view online banking as a quick way to pay bills and check their finances. However there are a few drawbacks to online...

Teens not Money-Smart

Parents: You might want to think twice before you give the kids the credit card. U.S. teenagers spend more than  $155 billion annually on clothes, video games and other material possessions, according to a San Antonio Business Journal report.

However, a survey sponsored by the Federal Reserve found that despite teens? growing spending power, many teenagers are not investing their money wisely, and as a result, are financially illiterate.

The survey -- conducted every two years -- found that only 52.4 percent of high school seniors answered questions about personal finances correctly. For example, 55.8 percent of high school seniors thought they would have no liability if their credit card were stolen and charged as much as $1,000, reports the Associated Press. A credit card holder is limited to $50 after the credit-card issuer is notified.

Additionally, only 22.7 percent of seniors say they know that income tax may be charged on the interest earned from a savings account at a bank if a person?s income is high enough. And, nearly 57 percent think earnings from savings account interest may not be taxed.

Here are additional survey results:

  • Nearly 38 percent correctly said that retirement income paid by a company is called a pension. That's up from 34.2 percent who answered right in the 2004 survey. However, 59 percent in the survey thought it was called Social Security or a 401 (k).
  • Only 26 percent knew that a state bond is not federally protected against loss. In the previous survey, 35.3 percent chose the right answer.

"This indicates that despite the attention not paid to the lack of financial literacy, the problem is not about to resolve itself anytime soon," says Lewis Mandell, a professor of finance at the University of Buffalo Scholl of Management, in the report.

These results and the importance of financial literacy is a good lesson for teenagers and adults.

"Increasingly, personal financial security requires the ability to understand and navigate the financial marketplace. For example, buying a home, saving for retirement or for children's education, or even effectively managing the family budget now requires more financial sophistication than ever before," says Fed Chairman Ben Bernake, in the report.

As teenagers come into their own financially, parents should help them build good spending habits. Without these skills, teenagers will be haunted by bad debt and poor financial decisions for the rest of their life.

For more information about Banking & Savings, visit's Finance Center.

Military News App by

Download the new News App for Android on Google Play or for Apple devices on iTunes!

Featured VA Loan Articles

  • VA Loan Closing Costs: An Added Benefit
    Besides the advantage of requiring no down payment for qualified VA borrowers, there's also a distinct advantage for the borrow...
  • White suburban home.
    IRRRL Facts for Veterans
    IRRRL stands for Interest Rate Reduction Refinancing Loan,also known as a "Streamline" or a "VA to VA" loan.
  • US Map Showing High Cost Counties
    VA Loan Limits for High-Cost Counties 2017
    The VA loan limit for 2017 is $424,100. But it could actually be substantially more if you buy a home in a high-cost county. Se...
  • Get the FAQs on VA Home Loans
    We've answered 16 of the most frequently asked VA Loan Benefit questions. View them now to get a quick understanding of your be...
  • Top 3 VA Home Loan Tips
    There are numerous advantages to having a VA mortgage. A VA mortgage loan can be guaranteed with no money down, in some cases u...
© 2016 Military Advantage