Free Financial Literacy 101 with Young Adult Savings Today for Tomorrow
There’s a good chance you’re going to have a young adult graduate from high school without little to no financial literacy education because There’s only four states – Missouri, Tennessee, Utah, and Virginia require high school students take a stand-alone personal finance course to graduate according to Jump$tart Coalition.
Young adults who are spending over $150 billion a year lack the knowledge to save. In a study done by Charles Schwab Foundation of 16 to 17 year old high school students found that only 45% had money in savings account.
Many states are finding some unique way to funding financial literacy in their schools i.e. accessing fees on financial serves, using a percentage of civil penalties and taping into unclaimed property funds. My question is, “If financial literacy is so important why after over 25 year of giving it such a priority by the Council of Economic Education haven’t more statewide movement been made? “
I agree with Loyola Law School professor Lauren Willis, “Financial literacy classes give people the illusion that they can successfully manage their finances.” I believe financial literacy courses in schools are not the answer to creating savvy financial consumers. I believe your young adults need to learn the basics of personal money management taught from home. However, the recent recession taught us that even teaching at home has been inadequate.
If financial literacy is conducted through classroom teaching, self-study materials, informational websites, interactive games and educational counseling only, the personal money management skills will be limited. We cannot not be content with just teaching financial literacy. We must involve our young adults in what they’re being taught. By doing this we can almost be assured their learning. This might mean encouraging our high school aged students to open savings accounts.
Then encouraging them to use the savings account for saving a portion of any gifts, allowance or pay they receive. The amount they save must be their decision. They will learn that their money will begin working for them as well as they work for the money!
Doing this may give the young adult the confidence to make smarter money decisions in the future. Opening a savings account can be done at a much earlier age and is highly encouraged. Encourage, as well, at any age to let the youth owner of the account make all deposits and teach them by letting them handle the savings account of course under adult supervision in some cases.
Some things you can do to encourage savings:
- match a portion of the amount your teen deposits.
- offer a reward for your teen reaching a certain savings goal.
- If you, relatives or friends that like to buy expensive gifts and clothes I encourage you to take one third of the amount paid for the gift and/or clothes and let your young adult deposit that into their own savings account and watch their appreciation as that money grows.
- Encourage them to visit our website to learn more about the basics of financial literacy. It’s not going to cost them anything, and it won’t take a much of their time.
We are headed for more trouble if we don’t find a way to get head of the curve. The recent recession demonstrated the concern for more financial education. What we at freefinlit101.com want to do along with you the parents or other concerned persons for the young adults in your lives is prevent them from becoming a victim of another recession. Whether they’re using their savings to purchase a new car or a house we want them to do it wisely understanding the cost of interest and terms.
When you do go to open that new account, before you leave the bank, no matter what bank it is, stop and tell manager where you got the idea. Tell them about Free Financial Literacy 101 and give them our website freefinlit101.com.
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