Article Source: Indiana Banker's Association
Do you know Financial Literacy Month is celebrated in April all over the world, including the United States? Its purpose is to shine a spotlight on practical financial education. In the banking community, both the American Bankers Association and the Independent Community Bankers of America are promoting community outreach—including financial literacy efforts—throughout April.
With the current worldwide economic conditions and national and local discussions on budget shortfalls, no doubt there will be significant attention on Financial Literacy Month this year, with a multitude of classes, articles and presentations focusing on ways to manage money. The national Financial Literacy Month movement hopes to inspire people to take control of their finances and increase their knowledge of practical money matters, and volunteer to teach others about the necessity of understanding the language of money.
Here are some tips that can help you teach others about managing money during the next 30 days:
- For children under age six: Teach them to save. Start with a piggy bank or a shoe box. Help them find and collect coins in your car, house even walking outside. At the end of each week, help them add up their savings. At the end of April, add up their savings for the month. Challenge them to do the same the following month. Soon they will have started a solid savings habit.
- For children ages 6-11: Teach them to save during the next 30 days by putting their savings in a piggy bank or a shoe box. Visit your trusted local banker and ask if he or she would show your children the bank vault where money is stored. Open a savings account in your child’s name. Consider providing an allowance for doing chores with a good attitude. Everyone is expected to do their chores; the positive attitude makes the difference and could help your children earn some money that they control.
- For children ages 12-15: Teach them to save and spend wisely. Discuss choices and decisions, the difference between needs and wants (I
need to have food; I want to have a monster drink). Help them find small jobs that bring in money, such as raking leaves, feeding a neighbor’s pet, watering plants or babysitting. Ask them to keep a 30-day journal of their earnings. Take your child to your local bank, open a savings account, and encourage the habit of adding regularly to the balance.
For children ages 16-18: Driving may be part of the new routine. Give them a mileage book, and ask them to track their driving miles for 30 days. At the end of each week, ask your child to multiply their miles by the most recent IRS reimbursement rate (currently 51 cents per business mile). This practice will help teens see the cost of keeping a vehicle. In addition ask them to open the envelopes with your telephone bill, your gas bill and your electric bill. Teach them how to read bill statements. Encourage them toward a savings goal of $500.
For young adults ages 18-25: Teach them how to save and spend wisely. Talk about the process of renting an apartment; the deposits needed for gas, electricity, insurance and other choices; and decisions they will have to make as they leave your household. Talk about the need to pay bills on time, and how this practice can positively impact their credit score. Tell them a good credit score can save thousands of dollars on a car purchase.
Encourage all of the young people you know to save and spend wisely. With financial disaster stories in the news, it is important to inspire youth with hope and a firm resolve that they can achieve financial stability.
Your trusted local bankers encourage you to make Financial Literacy Month 30 days of opportunities to help others think about the language of money and to save, spend and invest wisely. Financial knowledge can prevent a lifetime of living paycheck-to-paycheck and can help everyone get ahead.
This information is provided with the understanding that the Association is not engaged in rendering specific legal, accounting or other professional services. If specific expert assistance is required, the services of a professional should be sought.
Provided as a public service by the Indiana Bankers Association.
