Develop Good Financial Habits

David Lillard photoBy Tennessee State Treasurer David H. Lillard, Jr.

Everyone understands how important education is in our society today. In order to compete for jobs in a global economy, our young people must be well versed in communication, math and science skills.

But even that won’t be enough.

To be successful in their professional and personal lives, people need to be financially literate as well. Sadly, they very often aren’t.

Consider these statistics:

  • According to a survey by the Employee Benefit Research Institute and Mathew Greenwald and Associates, two-thirds of American workers have saved less than $50,000 toward their retirement – and more than a quarter of them have saved less than $1,000.
  • Another survey by Sallie Mae and Gallup indicated that 4-in-10 parents with children younger than 18 haven’t set aside money for college expenses.
  • And according to a report by Moebs $ervices Inc., 87 percent of Americans don’t even balance their checkbooks. Read more…

POSTED: April 15, 2013 | BY: admin | TAGS: , , , , , , ,

The Cost of Financial Illiteracy

Barbara ONeillBy Barbara O’Neill, Extension Specialist in Financial Resource Management, Rutgers Cooperative Extension.

The phrase “financial illiteracy” describes the widespread inability of many Americans to understand key financial concepts and manage their personal finances wisely. It is costly to both individuals and society. The total price tag can be tallied in many ways: Forgone savings and investment opportunities, lives shattered by financial loss or bankruptcy, higher prices than necessary paid for goods and services, dreams and aspirations that go unfulfilled, and marital discord about money. The collective loss in dollars resulting from common financial errors just has to be tremendous. Read more…

POSTED: April 12, 2013 | BY: admin | TAGS: , , , , ,

We can do better than this. Our children need financial literacy.

Lynn FitchBy State Treasurer of Mississippi Lynn Fitch.

On my way to make a speech recently, I made a quick stop at a local convenience store to grab a diet coke.  “That will be $2.28,” the young girl smiled.  As I handed her three $1 bills, the cash register chirped and the drawer popped open.  She reached for my change. “Oh wait,” I said, “I have three pennies.”  Her pleasant smile quickly faded and was replaced with a blank stare into the cash drawer. “Um…..hmmm…..uh……..I’m not sure what to do,” she said in a confused, sheepish tone.

It’s unfortunate that many of our young people can’t count change or do the math.  We must give them the financial skill set and tools to succeed in life so they don’t have to learn the hard way.  We must create financial freedom for our children. Read more…

POSTED: April 4, 2013 | BY: admin | TAGS: , , , , , , ,

5 Reasons to Teach Financial Literacy

By Brian Page, Finance, Economics, & Business Teacher at Reading High School, Ohio; Working Group, President’s Advisory Council on Financial Capability.

#1 Relevance
We are asking our students to make one of the biggest debt choices of their lives before they leave high school, student debt. Student debt now exceeds $1 trillion. It’s a growing problem that needs our attention. Many high school students have jobs and pay taxes and need to understand how to fill out basic tax forms and file for themselves. I could write a dedicated blog post full of further anecdotes, but you get the point. Many of the students we teach have adult responsibilities. Personal finance is relevant to all of their lives in the future, and to many of their lives right now. Read more…

POSTED: April 3, 2013 | BY: admin | TAGS: , , , , ,

CEE in the News: Why We Need to Teach Financial Literacy in Schools

Suzanne McGee of The Fiscal Times is a proponent of financial literacy education, both at home and in our schools. After a media luncheon with Nan J. Morrison, CEE president & CEO, McGee followed up with her blog post on what she learned from teaching “Wall Street 101,” and how we can do better for our nation’s youth.

“It isn’t about giving kids rules, Morrison points out: Just telling them to save 10 percent of their income is about as useful as telling an overweight child to eat less and exercise more. What helps more is teaching that child to make healthy choices and discover the rewards of physical activity. Similarly, helping a child to become fiscally fit means giving them tools to make sensible decisions on a day-to-day basis, not just putting aside an arbitrary percentage of their income.”

You can read McGee’s full post on The Fiscal Times here.

POSTED: March 12, 2013 | BY: admin | TAGS: , , , , , ,

Financial Literacy Skills in Indiana

Poor financial literacy skills lead to poor choices. Poor choices can create a downward spiral for young people and adults.

Jeff Sanson, executive director of the Indiana Council for Economic Education (ICEE), spoke with Symone Skrzycki of BizVoice Magazine, on the importance of financial literacy and education for our nation’s youth in ‘Cause for Alarm – Financial Literacy Skills Must Improve.’

ICEE is one of CEE’s state affiliates working to improve the personal finance and economic skills for teachers and students. You can learn more about their work here.

Read the full BizVoice article here.

POSTED: March 5, 2013 | BY: admin | TAGS: , , , ,

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