Teaching Kids about Money
“Daddy…why do you go work?” That was the question posed by my 4 year old daughter Deirdre as I was leaving for work one morning. Like many questions from young children, they catch you off-guard, and force you into deeper thought than you expected. I started to respond with answers like, “Well because everyone has a job that helps someone or something….” And continued on about getting paid and how that allows us to have a house, food, etc. . . .”
I had lost her, and she was on to other things.
I realized that a large part of this question was about financial education, and would require much more attention from me as she and her siblings grow older. Surely, this question must reside in every child’s mind, and every parent will face it at some point. My 4 year old is oblivious to the current financial crisis, yet I think her generation is the key to ensuring we avoid a similar experience in the future.
So why don’t we have more focus on educating all of our children, at all socioeconomic levels, on financial and economic basics? Or is the focus there, but we’ve been unable to achieve results? I want my children to make sound financial choices early in their lives, and consider both the short and long term implications of their decisions, and I have to believe that other parents want the very same things. I think the goal should be to provide all children with a basic understanding of personal financial management so they can call on that knowledge early on.
We seem to understand what needs to be done, as evidenced by the various standards and organizations that exist to support this cause. However, few states require any formal curriculum, and what is required is mostly at the high-school level. But is this a problem to be solved by public education?
The question is how, who and when to connect and instill financial fundamentals to children. Can we use the rich media platforms that are increasingly accessible to all children? Who should take on this responsibility? Parents? Government? Schools? Who is best equipped?
A huge opportunity for all of us. I’m looking forward to being a part of the solution.
The Feds Resources http://www.federalreserveeducation.org/teachers/standardinfo.htm
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January 24th, 2009 at 11:26 am
i think parents should teach children to save money and build from there. start young. and yes, use multi media platforms. we use music and a child’s character named sammy rabbit and have good success not only connecting with kids, but parents as well. keep up the great work! we need more people advocating smart money habits and skills.
sammy
http://www.itsahabit.com
http://www.sammyrabbitblog.com
January 24th, 2009 at 2:30 pm
It will take a village. And it will need to be continual. Like most other subjects, it will have to start with the basics. The fundamentals. And build from there. And be reinforced at many different points.
Banks are uniquely qualified to fill this educational need. They have the experience and the expertise. There are several challenges. Banks’ focus has been sales driven for “free” advice, and expensive fee-based for all other advice. This meant the advice could not be trusted as being beneficial to the consumer. Or that the folks who really needed it could not afford it. Or both. Add to that the lack of trust and fear consumers have in the system and those employed by it.
The time to act in filling this need is now. Consumers are open to learning how they can help make anything better. Everything better. There is no better opportunity than now.
I too look forward to being a part of the solution.
January 24th, 2009 at 9:14 pm
Mutimedia tools are great. Speaking as a parent, good quality educational tools are helpful. Reinforcing the message in multiple channels (e.g., home, school, TV) makes sense as well. However, in the end, children learn from watching their parents. Do their parents save for college or for a rainy day? Do they buy on impulse without consideration for the funds available? Do parents teach their children the value of self restraint or are all needs indulged?
So, a first step is to help parents model sound behavior … a lot harder than building flashy multimedia tools.
January 25th, 2009 at 12:38 am
1. Absolutely, the more that can be done to help parents be good role models the better. Most kids I know learn from a variety of sources, but parents are generally the primary one.
2. Basics seem like a good place to start, particularly if you want to build something that lasts. However, I’m not sure banks are uniquely qualified to fill the nation’s and families financial education needs and that they have the experience and expertise to do so. Certainly, some do.
3. It’s exciting to see the energy and enthusiasm for this topic.
sammy
http://www.itsahabit.com
http://www.sammyrabbitblog.com
February 4th, 2009 at 1:15 am
Great info. A good article posted on MSN: “What kids need to know about money.”
Sammy Rabbit
http://www.itsahabit.com
http://www.sammyrabbitblog.com
Changing lives one dime and habit at a time!
March 11th, 2009 at 5:39 pm
Teaching kids about money should start when they are very young. See my article about ten things your seven year old should know about money.