Kids and Money: 3 Proven Ways to Make Lessons Stick
Talking to most kids about money is like talking to the door. In French. Until they have first-hand money issues, kids just won't be invested enough to pay attention. Yet research shows that the earlier kids learn something the longer it stays with them. So how do concerned parents solve this puzzle?
The Charles Schwab Foundation, whose mission includes teen financial education, provides some clues with its second annual batch of Innovation Awards, which come with $3,000 and recognize new ways to teach kids about money.
Most important, says Carrie Schwab-Pomerantz, the foundation's president, is "making the lessons interesting and real." Nothing works like hands-on, experiential learning, which is why paying an allowance starting as early as first grade is so important. But there's much more you can do. The Schwab Foundation awards this year fell into three broad categories:
· Real-life decisions Fort Hood Child & Youth Services in Texas was recognized for a program simulating real-life money problems. The kids had an "income" and at stations in the gym had to decide whether to buy or rent a home or use a credit card, how to allocate money for food, clothing and entertainment, and even whether to buy a lottery ticket. At the end of the seminar they compared how each child's money held up.
· Entrepreneurism The Boys & Girls Club of Palm Beach, FL, was recognized for a program working with local business leaders who helped the kids launch and run a real-life food co-op that included a garden and regular distributions of produce, meat, chicken, fish and dry goods. Another winner helped teens launch a successful real-life candy business.
· Engagement with experts The Waterville Area Boys & Girls Clubs of Maine and the Boys & Girls Clubs of Oshkosh, WI, were recognized for programs that pulled in community leaders as personal finance mentors. Professionals helped teens develop a real budget, open checking and savings accounts and use an ATM. Success was rewarded with things such as school credit and free job/college counseling.
Keeping it real seems to work. Remember that the next time you find yourself lecturing to your kids about money. It's better to show than to tell.
If you have a question about kids and money, I'll get the answer. Email me at dankadlec@dankadlec.com.
Photo courtesy Flickr user woodleywonderworks
Dan KadlecDaniel J. Kadlec is an author and journalist whose work appears regularly in Time and Money magazines. He is the former editor of Time’s Generations section, which was written and edited for boomers. Kadlec came to Time from USA Today, where he was the creator and author of the daily column Street Talk, which anchored the newspaper's business coverage. He has co-written three books, including, most recently, With Purpose: Going from Success to Significance in Work and Life. He has won a New York Press Club award and a National Headliner Award for columns on the economy and investing.
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