Capital One Survey of High School Seniors Reveals Gender Gaps in Financial Literacy

Financial Education Classes Key to Preparing All Students for Post-High School
Money Management Responsibilities
MCLEAN, Va.--(Business Wire)--
With high school graduation and summer just around the corner, many young adults
will soon be experiencing newfound freedom and heading out into the world on
their own. For many, this next chapter in life also means taking on the new
financial responsibilities without the help of their parents. Capital One
Financial Corporation (NYSE:COF) recently surveyed high school seniors to see
how prepared they are to manage finances on their own.

Although the survey data shows the majority of soon-to-be male graduates believe
they are ready to take on these new challenges, the female students are less
certain of their ability to manage their finances on their own.

According to the survey, two-thirds (65.4 percent) of the male students rated
themselves as "highly knowledgeable" about personal finance compared to less
than half (49.2 percent) of the young women who participated in the survey.
While the gender differences are surprising, these numbers also show a striking
correlation between the students` confidence about their financial knowledge and
whether or not they had participated in a financial education class, with 45
percent of the male students surveyed and 61 percent of the female students
reporting that they have never taken a personal finance class.

Overall, one-third of the students (33.8 percent) said that they were either
unsure or unprepared to manage their own banking and personal finances.

"It`s clear that financial education, or the lack of it, has an impact on
students and the level of confidence they have in their ability to manage money
on their own," said Diana Don, Director of Financial Education at Capital One.
""Basic money-management skills are important building blocks for economic
self-sufficiency and success and it`s important that all students understand the
fundamentals of personal finance when they graduate from high school."

Early practical experience with money and banking helps establish good habits

Real world experience also prepares seniors for the financial challenges and
independence they will face upon graduation. Eighty percent of the high school
seniors surveyed report that they have had a bank account for one to two years
and that they are regularly checking their account balances. Most of those with
checking accounts (73 percent) balance their checkbooks at least once each month
and one quarter report that they check their bank account balances weekly for
activity and errors. The vast majority (85 percent) of the students also said
they at least periodically set money aside in savings. However, only half of the
students surveyed (50.6 percent) use a budget to manage expenses and savings.

Parents are a primary resource

The majority of the student`s participating in the Capital One survey (70
percent) reported that they, at least occasionally, look to their parents for
advice about money management and personal finance. However, only 27 percent
said that their parents are their primary resource for financial information.

For seniors who will soon be graduating and experiencing more financial freedom,
Capital One offers the following tips for a healthy financial future:

* Establish financial goals - As a first step to financial freedom, consider and
establish your own financial goals. Short-term goals could include setting aside
money to cover everyday expenses or saving toward a vacation with friends.
Long-term financial goals might include planning to repay student loans or
saving to buy a new car.
* Develop a realistic budget that you can stick to - After graduation, many
seniors may be responsible for a number of bills and personal expenses for the
first time. Once you`ve established financial goals, create a budget of expenses
you expect to incur. Gather recent receipts and be sure not to forget bills or
things that may be automatically deducted from your bank account. Then determine
your expected income. Determining your expenses and your income will show any
gaps and will allow you to allocate your money properly, ensuring you are in
control of your income and on track to meet your financial goals.
* Prepare for the unexpected - When creating a budget be sure to set aside money
for emergency situations or unexpected fees.
* Balance your checkbook - It is one of the easiest ways to keep track of your
finances and avoid unnecessary fees that will eat away at your budget.
* Simply pay attention - Thoroughly read all bills, contracts and fine print.
This is one of the most important keys to financial responsibility. It`s
important to know your interest rates on all credit cards and loans. You should
also check your bills closely for mistakes each month and report any erroneous
charges immediately.
* Pay on time - Paying your bills on time is the most important step toward
establishing a good credit history. If you anticipate that you will be late on a
payment, contact your lender in advance to make them aware of your situation and
see if there is any room for negotiation.
* Be smart about credit - Look for ways to establish a good credit history early
on as your credit rating will play an important role down the road. If you
choose to apply for a credit card or loan, be sure to read the fine print and
understand any fees associated with the card. Also be sure to check your credit
report at least once a year; regularly checking is one of the best ways to
protect against identity theft and credit fraud. Consumers are eligible for one
free credit report every year from each of the three major credit reporting
agencies. Individuals can request their free credit report online at
www.annualcreditreport.com or by calling 1-877-322-8228. Consumers should also
be sure to correct any mistakes on their credit report right away. You can do so
by contacting each of the three major credit reporting bureaus - Equifax,
TransUnion and Experian.
* Save, save, save - While it might be challenging to put aside money in
savings, this is an important habit to establish. No matter how little you put
away, every little bit helps so don`t wait to start saving. Put aside anything
you can today. One way to do this is to have money automatically transferred to
savings. This is one of the easiest ways to begin saving. Set up automatic
transfers in regular increments to ensure that money goes directly to savings.

More information about personal finance and money management is available on the
Capital One website, including a free interactive online tool developed in
partnership with the non-profit consumer advocacy group Consumer Action, which
is available at http://www.capitalone.com/financialeducation/cbt/launcher.htm.

MoneyWi$e program arms consumers with financial tools and information

Education is the key to a healthy financial future. To help consumers, Capital
One and Consumer Action created the MoneyWi$e financial education program. The
MoneyWi$e eLearning tool provides interactive modules, worksheets and
calculators to help consumers with various personal finance topics, including
saving, budgeting, and rebuilding credit. The program includes a special section
dedicated to "Talking to Teens About Money." Through interactive modules,
parents can learn how to teach teens about saving, talk to them about credit,
help them set financial goals and dispel myths about debit cards and writing
checks. Consumers can access the MoneyWi$e eLearning tool in English and Spanish
at http://www.capitalone.com/financialeducation/cbt/launcher.htm.

Survey Methodology

The findings reported in this release are from an online panel survey conducted
by the opinion research firm, Braun Research of Princeton, New Jersey. The
survey was sponsored by APCO Worldwide in Washington DC. Braun Research
completed 500 interviews with High School Graduating Seniors throughout the
United States. The interviews were conducted between May 13, 2009 and May 18,
2009. The margin of error for this study is ± 4.38 percentage points at the 95%
confidence level. Sampling for this study was supplied by invited panelists.

No statistical weighting was accomplished as all samples were drawn at random
and designed to fall proportionally to the population of High School students in
the United States by Census region.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding
company whose subsidiaries, which include Capital One, N.A., Capital One Bank
(USA), N.A., and Chevy Chase Bank, F.S.B., collectively had $121 billion in
deposits and $150 billion in managed loans outstanding as of March 31, 2009.
Headquartered in McLean, Virginia, Capital One offers a broad spectrum of
financial products and services to consumers, small businesses and commercial
clients. Capital One, N.A. and Chevy Chase Bank, F.S.B. have approximately 1,000
branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland,
Virginia, and the District of Columbia. A Fortune 500 company, Capital One
trades on the New York Stock Exchange under the symbol "COF" and is included in
the S&P 100 index.

Capital One Financial Corporation
Diana Don, 212-580-0161
diana.don@capitalone.com

Copyright Business Wire 2009