The Road to Financial Responsibility
Financial Literacy Month, sometimes also referred to as Financial Capability Month, has been celebrated each April since 2000.
Throughout the month, events and activities focus on raising public awareness about the importance of financial literacy and the need for financial education, celebrate individual and collective achievements in the effort, and address new and evolving issues in the field. This year’s theme is “Within our Reach: #afinlitfuture.”
The National Jumpstart Coalition was the original promoter of Financial Literacy Month. One of its partners, the American Bankers Association (ABA) Foundation, shared pointers for parents on teaching children the road to financial responsibility.
General Tips
• Save the money you earn
• Save 50 cents/day in loose change — monthly savings: $15; annual savings: $180
• Drink one less soft drink a day — monthly savings: $22; annual savings: $264
• Bring lunch to school – monthly savings: $40; annual savings: $480
• Eat out two fewer times a month – monthly savings: $30 annual savings: $360
• Buy store brands – monthly savings: $10; annual savings: $120
Use fewer cell phone features – monthly savings: $10 annual savings: $120
• Conserve gas (share rides with friends) monthly savings: $20; annual savings: $240
Pre-school through 2nd grade
Ask relatives to contribute to a college fund instead of giving toys.
Start saving early by opening a college savings account or exploring 529 college savings plan options.
Third – fifth grade
• Take your kids to the bank to gain an understanding of depositing money and making basic transactions.
• Use allowance to teach kids about saving and spending money early on.
• Create a saving jar, spending jar, sharing jar and investing jar to show the different ways that money can be organized and used.
Sixth – eigth grade
Help your kids find simple jobs, such as babysitting or car washing, to start earning and saving money. Include your children when planning finances that involve them so they can learn how to make should financial decisions.
Take your kids to the grocery store. Have them help make decisions about what to buy based on your budget.
Ninth – 10th grade
When starting a first job, help your child create a savings and spending plan so they learn smart strategies for using their money in the future. Research scholarships and other college funding resources now to cover the rising costs.
There are a lot of expenses when your child goes off to school. Set a goal and start saving together for housing, travel and other costs.Talk to your teen about credit and avoiding identity theft. They should understand the implications of accumulating debt and aim to pay off their monthly balance in full.
Help your teen learn about scholarships, investments and funding plans now so they are better prepared to make decisions on what college, trade school or university to attend.
Ask relatives and friends to contribute to a savings fund as a graduation gift.
For more information on financial literacy, contact Susan Cosgrove, Financial Management Area Extension Agent, at 601-635-7011.
