This is an appropriate question for our current financial times. Should we strive to teach people to always live within their means, live under their means or some form of a balanced life which may lead one to be over or under at times?
Here is an interesting article that looks at the options.
What do you think?
Thursday, February 19, 2009
Tuesday, February 10, 2009
In search of a NEW Financial Literacy Advocacy Pulpit
The time is now to bring financial literacy to the national stage, but IN A NEW WAY. I believe it will only be solved if we tackle it in BOTH at school and at home.
So far, most public, high profile organizations have been focusing on getting national financial literacy curriculum standards into our public k-12 system or giving tools to after school programs. These have been met with limited success- not enough funding, no one agrees on what should be taught, AND there is no carry over to the home environment.
There is no one advocating at the national level, to ALSO build and supply families with tools.
Why do we need to support parents in this task?
First: Kids are learning about money at home, all the time. They watch and model what their parents do because this is where money is used and discussed on a daily basis.
Second: Real life decisions about how to save, earn, invest, borrow, spend or share money happen at home- not in school. Schools can teach how to add, subtract, calculate returns, etc-- but when it comes to making real decisions with money, it happens at home. " I have 15$, should I buy the new CD now or should I wait and save it so I can buy a new IPOD?" No school can replace this type of experiential learning.
Third: Parents want their kids to learn their money values (like we give 10% to charity each pay period). Schools are designed to teach in a values neutral way.
Fourth: Habits are set early in life and are very difficult to change. Setting good money habits in place early is key. It is much easier to teach a 5 yr old that each time they get money, some must be saved, some given away and some can be spent---setting up the habit of a balanced approach to cash management.
I seek a new advocate at the national level, to build a partnership of companies, government and experts to create an integrated set of products, tools and support for BOTH parents and schools to teach financial skills to our youth. The time is NOW!
Who is ready to lead? Who will support this effort with real MONEY?
So far, most public, high profile organizations have been focusing on getting national financial literacy curriculum standards into our public k-12 system or giving tools to after school programs. These have been met with limited success- not enough funding, no one agrees on what should be taught, AND there is no carry over to the home environment.
There is no one advocating at the national level, to ALSO build and supply families with tools.
Why do we need to support parents in this task?
First: Kids are learning about money at home, all the time. They watch and model what their parents do because this is where money is used and discussed on a daily basis.
Second: Real life decisions about how to save, earn, invest, borrow, spend or share money happen at home- not in school. Schools can teach how to add, subtract, calculate returns, etc-- but when it comes to making real decisions with money, it happens at home. " I have 15$, should I buy the new CD now or should I wait and save it so I can buy a new IPOD?" No school can replace this type of experiential learning.
Third: Parents want their kids to learn their money values (like we give 10% to charity each pay period). Schools are designed to teach in a values neutral way.
Fourth: Habits are set early in life and are very difficult to change. Setting good money habits in place early is key. It is much easier to teach a 5 yr old that each time they get money, some must be saved, some given away and some can be spent---setting up the habit of a balanced approach to cash management.
I seek a new advocate at the national level, to build a partnership of companies, government and experts to create an integrated set of products, tools and support for BOTH parents and schools to teach financial skills to our youth. The time is NOW!
Who is ready to lead? Who will support this effort with real MONEY?
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