Survey Shows Eight in Ten Americans Want Schools to Teach Personal Finance; Parents Primarily Responsible
Orlando, FL, September 8, 2003 - As students head back to school this week and begin studying math, science and English, 80 percent of Americans believe schools should also be teaching personal finance education, according to a recent nationwide survey conducted by InCharge® Institute of America, a non-profit organization specializing in personal finance education and credit counseling. Recognizing that this is often not the case, an overwhelming 98 percent of Americans admit that ultimate responsibility for teaching children this important life lesson lies with parents.
The nationwide survey of 1,200 Americans, conducted in July 2003, comes at a time when Americans are facing personal finance concerns of their own. An unstable economy, layoffs, skyrocketing personal debt, and an unprecedented number of people in bankruptcy raise important questions about who is truly the most qualified to teach the next generation about personal finance.
"It is no secret that many school systems in this country do not have the resources to provide outside-the-home leadership in this arena that they are uniquely positioned to deliver," says Rebecca Stiehl, the senior vice president for Educational Services at InCharge Institute. "It is incumbent upon non-profit education organizations such as ours to help schools develop the tools they'll need for this monumental task. The education tools we develop - for both youth and adults - build crucial bridges toward our universal goal of educating future generations of consumers about the responsible use of credit."
InCharge Institute has formed educational partnerships with national groups such as 4-H and the Jump$tart Coalition in an effort to reach the maximum number of children with its message. "The more information we can get to America's youth at an early age, the better prepared they will be when it is time for them to enter college and live on their own," adds Stiehl. "We're proud to play a role in educating America's youth on such an important life issue."
While Americans almost universally agree that parents should be talking to children about personal finances, parents often find themselves at a loss. "Many of the parents we talk to don't feel comfortable themselves in matters of personal finance, and find it difficult to pass on lessons that they themselves have not yet learned. It is vital that you first educate yourself, and then make it a priority to educate your kids. It's one of the most important lessons you both can learn, together."
InCharge Institute's website, www.incharge.org, offers a number of personal finance education tools for both adults and youth. Credit Compass TM, InCharge Institute's self-paced interactive online personal finance education program, has taught many consumers the basics of money management and financial responsibility.
Offered below are tips for parents on how to talk to kids about personal finance matters. These and other tips will appear in the premier issue of Military Money SM magazine, InCharge Institute's personal finance and lifestyle magazine for families of military servicemembers, being released in mid-September. For more information on Military Money, go to www.militarymoney.com.
Headquartered in Orlando, Florida, InCharge® Institute of America, Inc. is a national non-profit organization specializing in personal finance education and credit counseling. The InCharge Institute family of services includes Profina SM Debt Solutions, providing professional credit counseling and education services. InCharge Institute publishes Military Money SM magazine and offers basic financial management education to clients and the report_list public. For additional information, visit www.InCharge.org.
Advice for Parents:
Teaching Your Child the Basics of Personal Finance
Before discussing finances with your child, make sure you determine your own set of values. You should model appropriate and responsible actions when dealing with your finances, especially around your children.
Turn everyday consumer moments into lessons. When you buy a generic brand over a brand name product, explain the difference to your child.
When using a credit card at a restaurant, explain how to verify the charges, and how to calculate the tip.
Allowances are a great way to teach your child financial responsibility. Give your child the opportunity to budget, spend and save his own money.
Establish a regular schedule of family discussions based on personal finance.
If your child wants a specific toy, create a goal setting session, where your child can learn how to "save" for that item.
By middle school, explain how your income is divvied up, between living expenses, investments, retirement, etc.
Children need to understand consequences. Make them realize that if they spend all of their allowance today, they won't be able to get what they want or need tomorrow.
Tips featured in an article by Maura Keller in the introductory issue of Military Money SM magazine, published by InCharge Institute, a nonprofit personal finance education and credit counseling organization. For more information, visit www.incharge.org or www.militarymoney.com.
