Indianapolis Recorder, Indianapolis, Marion County, 16 April 2004 — Page 2

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THE INDIANAPOLIS RECORDER

FRIDAY, APRIL 16, 2004

FINANCIAL LITERACY: Survey finds young adult's are optimistic about their financial future

By Leland Brown and Greg Cook Stoto Faring) Aqonts How confident are you about your financial future? A recent report detailing the State of America’s Financial Education (SAFE) shows twothirds of young adults and recent graduates are optimistic about their financial outlook despite the country’s economic difficulties and their present state of financial readiness. The report, conducted by NFO World Group, examined financial literacy, perceptions, attitudes and actions amongyoung adults aged 18-29. Nearly 60 percent of survey participants expect to be financially comfortable in five years, as opposed to 15 percent who feel that way now. Notably, only one percent expects to be struggling financially in five years. Nearly 70 percent of those surveyed are confident in their ability to plan for their financial future. Many young adults have taken the first steps toward achieving these goals through sound money management skills. Over 60 percent of participants say they save money on a regular basis and try to follow a budget. And over three-fourths had either a savings or checking account.

Yet the need for financial literacy remains. Less than one-quarter (24 percent) claim to have a good understanding of how to invest in the stock market or mutual funds, and only one-third (33 percent) feel comfortable taking financial risks if there is a possibility of gain. A majority of recent graduates know little or nothing about home mortgages or IRAs. Less than one-half of young adults pay off their credit card every month. And only 43 percent have established a “rainy day fund” for emergencies. The survey suggests that while many young adults focus on financial independence, budgeting and saving for major purchases and meeting current or short-term needs remains a priority over planning for the long term. There is a fundamental need for financial education in our homes and schools. The survey suggests the largest resource for financial advice and guidance for this age group is parents (48 percent), while the Internet is the next most frequented source (16 percent). Only one percent of young adults seek financial advice and guidance from schools or colleges. • As parents and mentors, there is more we can do to help promote financial literacy. Basic money management fundamentals and the principle of consistently contributing to savings and investments early in life are valuable lessons we can pass along to our children.

PLAN YOUR ROADMAP FOR YOUR FINANCIAL FUTURE. Wherever your road takes you, now your neighborhood State Farm agent can do more to guide you. Together well prioritize your needs and help you plan for where you want to be. Call your agent to schedule your free State Farm Insurance and Financial Review® today. W E LIVE WHERE YOU LIVE.

See one of these State Farm agents for more information on insurance and financ ial services.

Charlotte Adams-Jones Wanda Bell-Brown, CLU

5034 E 56th Street Indianapolis. IN 46226 317-252-5933

Carl Cox 2824 N High School Indianapolis, IN 46224 317-293-5955

8345 Little Eagle Ct Indianapolis, IN 46234 317-273-9300

Brenda Bond 4475 West 71st Street Indianapolis, IN 46268 317-328-0882

Frances Johnson-Robbins Veronica Montgomery

5707 N Michigan Road Indianapolis, IN 46228 317-257-3504

7503 Rockville Road Indianapolis, IN 46214 317-271-9780

Leland Brown 2519 E 65th Street Glenlake Plaza Indianapolis, IN 46220 317-251-1400

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Scott Nichols 7223A West IOth St Suite A Indianapolis, IN 46214 317-241-3509

LIKE A GOOD NEIGHBOR

STATE FARM IS THERE.*

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Providing Insurance and Finain lal Services f.nnsuii >oiir to* ot legal advisor tor specilic advice Slale f arm • Huimr I it'ictis Blnoimrioton,' II

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Greg &lark 6335 Oaklandon Road Indianapolis, IN 46236 317-823-5877

Phil Raspberry 9546 Allisonville Rd Suite 107 Indianapolis, IN 46250 317-849-4422

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Greg Cook 2502 Lake Circle Drive \\illow Lake Shopping Center Indianapolis, IN 46268 317-872-7761

Rick Smith 1317 West 86th Street Comer 86th & Ditch/C.reenbnar Plz Indianapolis. IN 46204 317-255-7900