Why is education about risk and decision-making important?

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Why is education about risk and decision-making
important?

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A key time in young lives

• During high school, students set the pattern for
  their adult decision-making
• Their choices more so than earlier ones have
  major effects on their adult lives

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The world teenagers facehas become more complex

• Job requirements of a modern economy
• More choices on health
• Increases in credit and borrowing opportunities
• New risks not fully present in earlier generations

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The problem

• High School students face new freedom
• Will they manage freedom properly or take too
  many chances?
• Four key areas education, health, credit, risk

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Educational choices and risks

• Many students dont understand opportunity cost
  or their choices fully
• Affluent students may seldom be required to make
  hard choices
• Poor students may think they have no choices

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More education will be necessary

• Occupational outlook All but one of the 50
  highest paying occupations will require a college
  degree
• Other fast-growing occupations require high
  school and more

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The knowledge-based economy

• Rewards people with technical skills
• Common occupations such as auto mechanics are now
  much more technical
• Few high-paying jobs for the unskilled

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Dropout rates a threat

• High school dropouts are 8.8 of the population
• Dropouts face reduced opportunity
• African-American and Hispanic dropout rates
  significantly higher

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Education summary

• Teens face many risks on education choices
• Video 1 shows opportunity, and discourages
  dropping out

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Health choices and risks

• Teenagers face key choices about their health
• They make decisions that may affect their lives
  dramatically

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Changing views on health

• Formerly, we left it up to the doctor
• Today, we are increasingly aware of how our
  choices affect health diet, exercise, and
  smoking, for example

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The risk of smoking

• Teen years a key time for smoking decisions
• Tobacco use may cause 440,000 deaths per year
• CDC Single most preventable cause of death

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The risk of inactivity

• Many health risks are correlated with levels of
  physical activity
• CDC figures show
• 69 of 12-13 year olds are physically active
• Only 38 of 18-21 year olds

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Health summary

• Those who make good health decisions promote
  their physical and financial well-being
• Video 2 shows how excessive risks hurt health and
  wealth

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Choices and risks involving credit

• Teenagers face new risks
• Credit more widely available than ever
• Powerful media messages urge people to spend

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Getting credit is no problem . . .

• Card issuers seek younger customers
• Fraction of 18- and 19-year olds having their own
  cards1/3 and rising
• College students especially targeted

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. . . managing credit can be a problem

• Teen emphasis on buying now may overshadow
  paying later
• Most (80) dont know how long until payoff if
  they only make minimum payment

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Teenagers need credit skills

• How to understand their credit reports and credit
  scores
• How to read their credit statements
• Informed consumers less likely to be hurt by
  identity theft

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Credit summary

• Teenagers need to understand that credit can be
  their best friend or their worst enemy
• Video 3 helps teenagers understand credit

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Decisions on risk

• Teenagers have many new freedoms that bring risks
• Driving, although important, is not the only one

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Driving risk

• Only 4.9 of licensed drivers are 19 or under
• But they have 11.6 of the fatal accidents
• Over twice the risk of general population

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Helping teens understand insurance

• Teenagers can control their insurance costs
  through careful risk management
• Big expense, whether paid by teens or their
  parents

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Helping teens manage risk

• Teenagers are resistant to preaching and lectures
  about risky behavior
• But they can learn about managing risk
• Video 4 shows how

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In conclusionthe need for education

• Left to their own, youth give less consideration
  to the consequences of risk than the average
  adult
• Yet some early decisions have consequences far
  down the road
• Important to reach students before they make key
  decisions