Taking Care of Business
Even though most people make frequent financial decisions and transactions, many American teenagers do not learn basic personal finance in schools. An article in the May 2013 issue of Money magazine points out that though teens think they are financially savvy, they are often mistaken. The article discusses three personal finance skills parents should teach their children: managing on a limited budget, saving 10% of the money received from an allowance, a paycheck, or a gift check, and avoiding credit card debt.
There are some internet resources for teen financial literacy. ItAllAddsUp is a site where teens can play online games and simulations to learn about credit management, buying a car, paying for college, budgeting, saving and investing. MoneySKILL is a free online reality based personal finance course for young adults, developed by the AFSA (American Financial Services Association) Educational Foundation.
The Reality Fair will be presented by volunteers from the Illinois Credit Union League. Teens will learn basic financial literacy and money management skills, such as opening a bank account, interviewing for a job, receiving paychecks, buying necessities, etc.
Another good introduction to learning financial concepts is a Television program called BizKids. NPL owns a collection of these programs on DVD. In the various episodes, kids teach kids about money and business management concepts, including credit, saving, budgeting, investing money and even starting a business. The presentations are fun and educational and include ways to earn some summer cash. All of which are available now by checking our catalog.