Research Uncovers Girls' Lack of Confidence in Financial Decision Making, Illustrates Desire to Learn

The American dream is alive and well among girls, according to a new report by the Girl Scout Research Institute (GSRI), which reveals that girls feel optimistic about their financial futures, yet are less than fully knowledgeable about essential financial principles and instruments, from using credit cards to establishing good credit. And just 12 percent of the girls surveyed say they feel confident in making financial decisions.

The study, Having It All:Girls and Financial Literacy, comes out at a time of continued economic uncertainty. The country’s recovery from the 2009 recession has been marked by slow economic growth and high unemployment, as well as increasing concern over the costs of a college education and the unprecedented levels of student loan indebtedness.

The study, which surveyed 1,040 girls ages 8 to 17, found that girls are averse to debt. However, in order to avoid debt, these girls say they need more education about how credit works. In fact, nearly 4 in 10 girls say they don’t know how to use a credit card, only 38 percent know what a credit score is, and just 37 percent know how credit card interest and fees work. Perhaps not surprisingly, a vast majority (90 percent) say that it is important for them to learn how to manage their money.

“Despite the recession and economic uncertainty, girls are bullish about their financial futures,” said Trish Coghlan, CEO of the Girl Scouts of North-Central Alabama.“Some 88 percent say they are likely to make more money than their parents, and nearly all girls say it is likely that they will have jobs or careers they enjoy (98 percent), be able to provide for their families (96%), and own their own homes (95 percent) one day.”

This generation of girls is financially empowered and independent. A great majority feel gender is no barrier to what they can accomplish financially, and they envision a future family structure where they are fully engaged in financial decision making and planning. When it comes to financial capability, 7 in 10 girls say both men and women are equally likely to be financially responsible (73 percent) or in a lot of debt (72 percent).

Girl Scouts offers a financial empowerment program that ensures girls have the opportunities to build their business sense and hone their financial literacy skills. Girls build on these skills as they progress through the K−12 curriculum to become knowledgeable, confident, and self-reliant participants in a global economy. Whether a girl is working to earn the Financing My Future badge or the Money Manager badge, she is developing financial savvy, business skills, and innovative thinking.

The Girl Scout Research Institute (www.girlscouts.org/research), formed in 2000, is a vital extension of Girl Scouts of the USA's commitment to addressing the complex and ever-changing needs of girls. Comprised of a dedicated staff and advisors who are experts in child develop­ment, academia, government, business, and the not-for-profit sector, the institute conducts original research, evaluation, and outcomes-measurement studies; releases critical facts and findings; and provides resources essential for the advancement of the well-being and safety of girls living in today's world. The GSRI also informs program, public policy, and advocacy for Girl Scouting.

Girls Only! STEM Survey

In October the Girl Scout Research Institute (GSRI) will release the results from its national STEM report. Please take a moment to fill in this survey, so we can better understand the girls we serve.

Girl Scout Study Finds More Youth Today Would Make Responsible Choices Than 20 Years Ago

A nationwide survey released by Girl Scouts of the USA finds that more American teenagers say they would make responsible decisions on a range of issues from lying and cheating to smoking and drinking than young people just a generation ago.

The study, conducted by the Girl Scout Research Institute (GSRI), is nearly identical to one Girl Scouts commissioned in 1989 and a comparison of the two shows a marked shift toward more ethical and responsible beliefs and values and civic involvement among teenagers.

Nearly two out of three young people (62 percent) surveyed in 2009, for example, say they would not cheat on a test compared to about half in 1989. Fifty-eight percent say they would refuse an alcoholic drink if offered one at a party. That’s compared to fewer than half (46 percent) in 1989. And only 18 percent say they believe smoking is acceptable if a person finds it enjoyable. In 1989, more than a quarter of those surveyed thought smoking was acceptable.

“This study shows that young people truly value diversity and civic involvement,” says Trish Coghlan, CEO of the Girl Scouts of North-Central Alabama. “Teens today are more accepting and more committed to their values than teenagers 20 years ago. But in a society of constant negative messages, age-appropriate programs offered by the Girl Scouts are more crucial than ever to help girls learn strong values and how to deal with peer pressure.”

The survey, Good Intentions: The Beliefs and Values of Teens and Tweens Today, involved a nationwide survey of 3,263 girls and boys from the third through twelfth grades that queried them on issues ranging from ethics and diversity to civic involvement and peer pressure. The study was conducted with Harris Interactive (formerly Louis Harris Inc., the same firm that worked on the 1989 study.)

The study also surveyed young people about issues that have become prominent with the advent of new media and technology. Only six percent say they would engage in cyberbullying by forwarding an embarrassing picture of a classmate to their friends. Some 40 percent would take the extra step of telling the originator of the e-mail what he or she did was wrong.

In addition, the data show that youth today value diversity. Among 7th- to 12th-graders, nearly six in 10 (59 percent) say that being around people from different racial and ethnic backgrounds is important to them. This appears to be particularly important to girls (63 percent versus 55 percent of boys) and youth from diverse racial or ethnic backgrounds. (This question was not asked in 1989.)

And young people today appear to have a stronger sense of civic engagement. Compared to 20 years ago, youth today are more likely to say they intend to vote in the future (84 percent vs. 77 percent), as well as give to charity (76 percent vs. 63 percent). Some 79 percent say they will volunteer in their communities.

Volunteerism is an idea that the Girl Scouts have been instilling in young women for almost a century. Catherine Butler knows about volunteerism and recently earned her Gold Award by planning and teaching environmental classes to the campers at Camp Fletcher. The project addressed the specific issues of water protection, recycling and reducing wastes. Catherine helped campers relate to their local surroundings through a variety of activities.

Another aspect of the survey was religious beliefs. Seventy-one percent say their religious beliefs are important to them, and this group is not as likely as less religious or nonreligious young people to say they would lie, cheat, or drink.

The study also uncovered differences among boys and girls. Among teenagers, girls are more likely than boys to give to charity (80 percent vs. 72 percent) and volunteer in their community (81 percent vs. 77 percent.)