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Youth Financial Literacy

Preparing Today’s Youth for Tomorrow’s Financial Responsibility

2 . spending and credit. • The ability to make critical financial decisions. including understanding of income. use credit effectively. saving. and make good financial decisions. money management. investing.What is Financial Literacy? • Basic personal financial management skills. build wealth. • Knowing how to manage money.

for most people. requires the assistance of institutions outside the home. • Improved financial literacy. results in a higher standard of living over the long term. including retirement.Why Is Financial Literacy Important? • Financial literacy among individuals results in more stable communities. • Gaining financial literacy is a long-term process that. particularly early in life. 3 .

4 .Why Is Youth Financial Literacy Important? • Research has shown that young people determine their attitude about handling money by the time they finish the 5th grade.

Why Is Youth Financial Literacy Important? • Teenagers 13 to 18 are spending like adults.000 in the red. For teens 16 to 18. but are unaware of the possible consequences of their spending choices • About one-third of teens surveyed admits owing money to a person or company. • 14% are already more than $1. • Close to 50% say they are concerned 5 about paying it back. the percentage jumps to 22 percent. .

• Only 7% of parents say their child understands financial matters well.000 to raise a child to 18. • Only 32% of American parents talk to their children regularly about personal finance.Why Is Youth Financial Literacy Important? • It costs the average American family over $200. 6 .

MD) Copyright 2005 7 . and utilizes these mechanisms to promote economic and educational achievement From “ Makin’ It” The Youth Development and Research Fund (Montgomery County. and positive peer influence. youth popular culture.Youth Cultural Competence • A system wide set of principles and practices that promotes an increased understanding and appreciation of youth involvement.

8 . • There's no right way to teach all kids about money • Parents should feel free to invent the systems and games that work for them." • ATM or in line at the grocery store. explain that the money you're getting or spending is money you earned.Tips for Educating Youth on Financial Literacy • Always be on the lookout for a "teachable moment.

the more money they'll have later. • Explain the power of compound interest. The earlier they start to save. 9 . keep it simple.Tips for Educating Youth on Financial Literacy • For younger kids. and start when they're toddlers. Young children learn best in a few short lessons. Do it over and over. Kids have something powerful on their side: time.

Tips for Educating Youth on Financial Literacy • Give an allowance and tie it to chores around the house • Tell young people that they can have what they want but that they don't get it free. • Earmark a portion of savings for charity. 10 . • Put spending money and saving money in different places. • Make it a fundamental rule that a portion of allowance always goes into savings.

Tips for Educating Youth on Financial Literacy • Talk about your finances with your children. And use play money to help explain • Help them start a business 11 . • Junior Achievement • • National Endowment for Financial Education • www.Resources • Jump$tart Coalition • www.