Financial Literacy for our Children
We can do this! I know we can!
Every Sunday I try to get at least the business section of the paper read (and try to catch up on the entire week’s worth of the daily business section that my weekday mornings never afford me the luxury of getting to!). Each week I marvel at the column written about teaching our children financial responsibility.
Did you realize that in a survey released this March 2007 by Charles Schwab & Co. and the Boys & Girls Clubs of America, American teens believe that they will be earning an average annual salary of $145,500 based on the careers that interest them? Yet the Census Bureau reports that only 14% of U.S. households have incomes between $100,000 and $200,000. Something is wrong with that picture, don’t you agree?
It’s terrific that these teens are so optimistic that they will follow in the footsteps of successful lawyers, doctors, business owners and the like who have been fortunate enough to earn those 6-figure incomes. The reality is that we need to help these children of today prepare to live within their means - and that might mean $46,326 (the median household income in the United States).
I live it every day in my home! Two teen boys (one 17, one 15) - both good kids, both good students, both hang with pretty nice crowds. Here’s the thing about hanging with pretty nice crowds……their parents hand them many things on a silver platter. No work required. No parameters set. It is basically, “Mom I need.” or “Dad I want.” and they give, give, give. In fact, our 17-year-old is STILL waiting for us to purchase his first car for him!!! (He’s been waiting since November of last year…..don’t you think he’d get the fact that we are serious when we say, “No Mitchell, we will not be springing for a new car for you. Get a job!”)
I would love to hear what you all are doing to handle this aspect of life - do you agree that we should buy it for this very able-bodied son who is capable of getting a minimum wage job or even a tipped position at a local restaurant? I would not even be opposed to helping out with some of the initial costs, but he has made no attempt to even move in the direction of getting a job! I’m truly amazed at his lack of initiative as well as disappointed in his lack of motivation.
So, here’s where the teaching part comes in for all of us - as moms, as parents, as aunts, as grandmas, as teachers, as the guiding force of today’s youth. These children, ages 4-18, are screaming for help in learning how to manage their money. From the weekly allowance to the future of credit card / debit card use - we need to provide these children the tools with which to learn the simple word ‘budget.’
Do you know almost two thirds of these same teens surveyed insisted that they knew quite a bit about budgeting, saving and investing? Yet when asked for more specifics, most could not even demonstrate how to budget, how to pay bills or even how to explain credit card interest/fees! In fact, most of them thought that check cashing places were a good thing as far as a service offered (whereas the truth is they are expensive and cost a lot to use).
There are tools online to help those of us who ourselves do not have a good handle on our own financial status - click here and see! Many of the tools and activities on this web site are free. Then use search engines to find a cool financial literacy program for your age child. There are kits for kids ages 4-6 and 7-10 and teens and tweens and more and more! Just seek and ye shall find my friends.
We owe it to our children - their future and the future of our world. We Can Do This!!!
Happy Educating! ¡Sea feliz educando!
Boca Beth
