There are nearly 128 million workers in the United States.  Only 10% manage their money well. 

To me, the importance of financial education is quite clear.  When I saw the statistics published by the National Institute of Personal Finance Employee Education – the importance of financial education is even clearer.

• 90% of our nation’s workers have difficulty managing their money and not surprisingly – aren’t saving for retirement. 
• More than half admit spending 21 hours every month while at work – dealing with personal money matters. 
• Two thirds say they have trouble paying their bills on time and worry about money.

The real challenge when it comes to financial education is trying to get and keep everyone’s attention.  It takes time and a commitment to learn about banking and credit and savings and investing.  Sometimes learning about money just doesn’t hold the entertainment factor that’s needed to hold someone’s attention – regardless how badly they might need the information.

That’s why I do whatever I can to make learning about money – fun and mental.  Games help.  They provide a non-threatening, playful, competitive atmosphere with a mutual focus. The learning comes from the playing and talking and problem solving everyone must think through and do.

Games require critical thinking.  They make the abstract concrete.  Simple games that require counting or board games like Monopoly that show you the money and bring out the capitalist spirit in each player – are what help make learning about money – fun and mental.  It’s your money so take it personally ™. 

Here’s to your health and wealth.

It’s back to school across the nation and I want to give credit where credit is due.  Well intended parents are sending their kids off to college usually with a credit card.  I want to help you be sure they steer clear of some common credit card mistakes.

The average consumer has nine credit cards.  Don’t let your student get caught in the crosshairs of potential debt.  Collecting too many credit cards is absolutely not a good thing.  Even if the cards have zero balances, multiple open accounts mean the account holder is ripe for the potential temptation to max out on all the plastic.  So school them well before they get to school and are confronted with all those offers of free giveaways if they just sign up for yet another piece of plastic.

The credit card introductory rate isn’t forever.  But how many young consumers remember that?  If they do their homework, they’ll know that once that (usually) six month teaser, introductory rate is over it’s not unusual for the rate to jump to 18 or 20%.  That is an ugly and unexpected surprise for the uninformed.

A big lesson to be learned about credit cards is the importance of reading the fine print.  That’s where the (devil and) details of the offer are printed in tiny but all inclusive explanations.  Most credit cards have limitations about balance transfer fees, amounts and new purchases.  Your student should be well-schooled about the importance of knowing those tiny details.

Be sure to choose a credit card for the right reasons.  By this I mean, don’t let your student choose a card just because it has other attractions such as a rebate or rewards program or is offered by a well known icon or celebrity.  Remind your student that credit card granters aren’t their friend.  It is a business that wants to earn as much money as it can.  So make it your student’s business to shop for the card that has the best interest rate rather than the most interesting look.

Regardless the credit card that’s chosen as being the right one for your student – make sure they understand that even with the right credit card comes ongoing responsibilities:

• Credit card bills should be paid off at the end of every month.  Making a minimum payment only will get them in trouble for a very long time.  For example, if your student has a $1000 balance with a 17% APR and pays the minimum $25 monthly amount, it will take them 57 months to pay off that debt and cost $452 in interest charges. 
• Always pay on time, every month.  Be sure your student knows to check their account statement for the due date and pay at least 3-5 business days ahead of time

It’s vital that your student assume responsibility for their own money management.  Yes, it is time for them to understand it’s their financial thumbprint from now on.  It gives new understanding for them when they’re told:  It’s your money so take it personally ™ .

Students are certainly tech savvy these days.  They tweet and text and surf with great confidence, secure in their know-how about the joys of connectivity.  But how secure is their knowledge about being safely connected when it comes to online money management? 

For example, what would your student do if they received an email from their bank asking them to update their account information?  Would they confidently click on the attached link and update their records?  Wrong decision!  They would be giving identify thieves direct access to their money.  But if they’d played a new, interactive financial literacy board game called Wi$eMoney – they would know that banks don’t ask customers for account information via e-mail. 

Wi$eMoney teaches students about banking, credit, investing, budgeting and identify theft.  It was created by The Learning Key, a company that creates games to transform learning into action (www.thelearningkey.com) .  It has been tested with students and teachers in nearly two dozen states and complies with school board approved curricula. 

The information that’s shared while playing Wi$eMoney is priceless. And, it’s desperately needed because U.S. students are graduating without basic financial education.  They’re graduating without the ability to manage their money.  In fact, in a recent survey of educators across the country who belong to the Business Professionals of America teachers said:

• only a third of students who graduate from high school are financially literate
• 93% need education on how to manage a budget 

But the other disturbing fact that was identified in the survey is that more than half of the teachers (51%) said they are only somewhat qualified to even teach students in financial matters. 

That’s why parents and teachers must find ways to make learning about money fundamental and help students understand the importance of the mindset:  It’s your money so take it personally ™.

How better to do that than with a game that makes become financially smart fun and mental?

Here’s to your health and wealth. 

TAGS: Generation Y, Women and Money

 Is your child money smart when they graduate from high school? 

Being financially literate is not the grade most teachers give the nation’s high school students.  More than half say today’s kids have not been adequately educated about money matters by the time they receive their high school diploma. 

According to a recent survey of teachers nationwide who are members of Business Professionals of America, 51% said students are either somewhat or very illiterate when it comes to money matters regarding managing a budget, saving and investing money, credit cards and paying bills.  Only 2% of these educators felt that graduating seniors were very well-versed in financial matters. 

The survey was done for an interactive financial literacy board game called Wi$eMoney – a product of the Learning Key – a company that designs learning tools (http://www.thelearningkey.com/index.php).  I provided content for this board game and focused on challenging juniors and seniors to test their money skills and knowledge.  Wi$eMoney helps them understand early on why It’s your money so take it personally ™ should be their mindset. Wi$eMoney’s goal is to stimulate student awareness of their financial responsibilities and make the process fun! 

Many of the nation’s teachers – in fact, one in five of those asked –  who felt that students are very financially illiterate – don’t think their schools are doing enough to prepare students for the real world of money – how to make it, spend it, save it and invest it. 

Elizabeth Treher is founder, president and CEO of The Learning Key.  She says:  “Teachers, in general, are concerned that students are not aware of the financial responsibilities they will encounter when they become independent of their parents.”  Treher adds:  “Many educators feel that basic financial education should be introduced to students as soon as they enter high school and become involved until they graduate”. 

Financial education like reading should be fundamental as well as fun and mental.  What better way to engage students in learning to become money savvy than to make a game of it?   

Here’s to your health and wealth. 

If you’re interested in learning more about the Wi$eMoney board game and/or sponsoring financial education in your local school district, go to http://www.thelearningkey.com/PDF/Sponsorship_Promo_06092010.pdf.

TAGS: Generation Y, Women and Money

How do you teach your child to become a smart consumer?  The answer to that question is:  start early! 

I suggest you begin giving your child money lessons the first time they say “I want.”  The statement may be made as early as 3 years old so you need to be ready.  

When my 3 year old niece first spoke ‘ I want that’, I remember I was very happy. But just today morning, she drove me mad saying she wanted to wear a blue hairpin that belongs to her mom. I like your advice, but I am not sure how to talk to a young child who’s at her nagging best about needs and wants.  ~Saika~  Submitted on 2010/04/09 at 12:41am

When they say it – how about responding with an age appropriate reply – such as:  “You want to get that toy?  You already have one of those.  Do you know how much it costs?  It costs $3 dollars.  Hold up three fingers.  That’s how old you are.” 

Wait for their response or reply.  Will it be a question or statement?  Will it be a meltdown chant – “I want this toy!”  Regardless their reaction or your decision at that moment, know that you’ve begun a planned approach to teaching your child the fundamentals of personal money. 

You can re-introduce the concept any time.  When getting your toddler ready for the day – ask questions that allow you to use want versus need, such as:  “Do you want to go outside and play?”  Then ask: “But first do you need to go to the bathroom?”  Explain that going outside to play is what they want to do but going to the bathroom right now is what they need to do. 

As your child grows – so will his or her memory of the things they’ve heard that are needs versus the things that are wants.  Then you’re ready to up the ante and provide them with more concrete ways of understanding the difference and how the choice between needs and wants really matters.  

Gradually as they get older you introduce the concept of saving for something special rather than always buying something when they’re out with you.  And this opens the door for you making a point of explaining why you don’t/won’t buy things for them on impulse.  This conversation is one that leads to a much bigger concept:  the benefits of delayed rather than instant gratification.  

Now they’re beginning to appreciate the fact that it’s their money – which allows you to respond:  “Yes it is.  IT’S YOUR MONEY SO TAKE IT PERSONALLY ™.  Good job!”

Here’s to your health and wealth.

TAGS: April is Financial Literacy Month, Families, Kids and money

OK.  It’s April 15th.  Tax Day.  This is the day we all have to deal with Uncle Sam.  But instead of talking taxes – let’s continue our conversation about raising financially responsible children and why their money education should begin at a very early age.   

For many children, their first experience with personal money is when they get an allowance.  Many money experts suggest giving a child 50-cents or a dollar for each year of their age.  The actual amount is less important – at least initially – than the sense of financial independence. 

An allowance will help your child learn to handle their money and provide you an opportunity to introduce to them the idea of savings and why savings are important.  Look for banks in your community that have activities and incentives to help kids learn money basics. 

One of the important basics of money is learning to set goals that require accumulating a certain amount of it.  Talk to your child and ask what their goals are.  If it’s something they want, it’s the carrot that serves as their incentive.  Pardon the pun but – that way – you don’t have to become a nag.  And it’s yet another opportunity to discuss the difference between wants and needs. 

Just as I love the phrase – “reading is fundamental” – I tell children and their parents that “saving money is fun and mental”.  I want them to understand that minding over money really does matter.  I want them and their parents to embrace the philosophy that:  IT’S YOUR MONEY SO TAKE IT PERSONALLY ™.  An early sense of ownership of their “income” through birthday and holiday gifts, their allowance or summer job can create an excellent personal money management foundation for the future. 

April is Financial Literacy Month.  Tell a friend and share the wealth of money knowledge.

Here’s to your health and wealth.

TAGS: April is Financial Literacy Month, Kids and money

When does it make sense to start talking to your children about money?  I suggest very early. 

The age of three works for me because that’s just about when children start saying, “I want.”  When those words are spoken, I think you should have the first conversation with your child about needs and wants.  Make it simple.  Respond appropriately.  Don’t expect anything more than repetition of “I want” – but at least you’ve put in place a tiny bit of groundwork.  Each time the “I want” chant starts – ask if this is a need or a want and explain the difference – appropriately and personally to your child. 

Over time you will find that your child will begin saying what “it” is that they want – but you’ll find they will start asking whether what they’re asking for is a need or is it a want.  Take the moment and explain the difference.  Congratulate them on knowing how important it is to know the difference.

My entire mindset is finding a way to talk to your children about money.  They might not be mature enough to understand basic financial concepts but they will understand that money is something they can talk about.  With that knowledge – as they get older – it will be much easier to teach them about handling money wisely.  It will become habit forming. 

These early conversations will make a difference when it comes to offering your child an allowance which is usually a child’s first experience with the sense of financial independence.  Be sure to explain to them what an allowance is why, they’re getting it, whether it is tied to doing household chores or not and how they will choose what to do with this money.  

This is where I’d start talking to them about something called savings and the benefit of learning this life lesson early.  Tell them a mantra they can bank on forever.  Tell them IT’S YOUR MONEY SO TAKE IT PERSONALLY ™. 

April is Financial Literacy Month.  Here’s to your health and wealth.

TAGS: Allowances, Raising money smart children, savings

Don’t forget to give yourself a gift this holiday season.  Give yourself the gift of being a life long learner when it comes to money.  Promise to make just one new money-information-gathering move a week – starting now. 

Read the first paragraph of every story on the front page of the Wall Street Journal.  Subscribe to Kiplinger’s Personal Finance magazine to be sure you get ongoing, incremental and interesting money news in an easy and informative way.  Take a glimpse at online calculators such as Bankrate.com’s to input your personal money numbers to get projections and information you need.

These are doable goals.  Most of what you need to successfully determine what you’re going to do with your money starts with getting yourself in the right frame of mind for the task.

My gift to you this holiday season is the concept of “mind over money matters” – the process of identifying what you want and why, when you want it, and what it takes to achieve it.  I’ve written about this before.  It was my Thanksgiving wish for each of you.  But let me say it again.  These disciplines work in good times and in bad.    

• Before you decide what to do with your money, first know how you feel about your money.  
• Everyone – from cradle to grave – can benefit from ongoing, continuing education regarding basic money knowledge and responsibilities.
• “Mind over money matters” begins as early as the age of 3 by teaching children the difference between wants and needs – a money lesson that many adults never learned and as a consequence have made ongoing, poor money choices and suffered the consequences. 

Spread your new found wealth of knowledge – up and down the generations of your family.  Inspire the sense of accomplishment that comes when one saves money.  Instill the goal of self-reliance which is the gift each person can give him or herself through money management.

Here’s to your health and wealth.  New Year 2010.

TAGS: importance of life long learning about money, Self reliance through money management

I am the very proud grandmother of two. I’ve told you about my grandlittles before.  My granddaughter Savannah will be 3 next week.  My grandson Morgan turns 7 in December.  But more importantly, he started first grade yesterday.  The day before that, he and his Mom and I did back-to-school shopping.

The big event was to purchase the high top basketball shoes he’d had his eye on and had worked to earn money for all summer.  My daughter and her husband had told Morgan if he wanted those particular shoes then he needed to be able to help purchase them.  It was a new lesson about need versus want.  His wallet was bulging with 39 one dollar bills.  The shoes of choice cost $60. 

He led us from the parking lot into the mall and directly to the shoe store.  He knew the way.  It was a ritual of familiarity developed over the summer months whenever the family made a trip to the local mall.

The moment was here.  His foot was measured.  His toes stretched well beyond the kids’ size 12, even beyond the size 12-1/2.  A look of sheer joy and amazement crossed his face when the salesman said:  “You need a big boy’s size 1!”

He laced and relaced the shoes.  He walked in circles.  He cruised by the full length mirror.  He jumped.  He hopped.  He declared them “just right”. 

Now came the math lesson from me – Grandma GoGo. 

I explained that his hard earned $39 meant he was more than half way to being able to buy the shoes.  I went on to say that while he wanted these particular shoes he also needed new shoes for school because his foot had outgrown the ones in his closet.  I reminded him of our many conversations about the difference between needs and wants.  If he just wanted something, he’d have to go to his piggy bank to pay for it.  But if he really needed something, I’d always try to help him get it.

My final question to him as we sat together on the bench in the middle of the shoe store with the coveted high top sneakers still on his feet:  “How much of the money you’ve saved are you going to give the salesman for these shoes? He said:  “All of it, GoGo.”  It was both a statement and a question.

I told him I knew he had also been saving the money he’d earned so he could buy a new skateboard.  I told him that I’d like to help him stretch the money he had saved so that he wasn’t broke.  A short conversation then followed as I explained the new meaning of the word “broke” as it applies to money. 

Then I told him that I thought he should pay for the toe space that came with his new, big boy size 1 shoes.  “One dollar per toe, “I told him, “and I’ll pay for the rest of the shoe.”

He thought for a moment:  “You mean I give 10 of my dollars and you give 50 of your dollars, GoGo?”  I smiled, nodded my head and watched my grandson carefully and deliberately peel off his contribution and give it to the salesman.  He stood and watched me pay the rest, said “thanks, GoGo” – not once but twice, and asked if he could “break them in and wear them out of the store.”

As he led the way to our next stop which was the store that had back-to-school supplies - Morgan hopped, skipped, walked in circles and declared that his new shoes were “pretty cool” and that his toes were really happy. 

Ah yes, the price is definitely right when it brings such a sense of ownership.

Here’s to your health and wealth!

TAGS: Kids and money