The 3 Rs are just the beginning of a good education. For today's students, financial literacy is also essential. With many states now requiring money-management courses, going "by the book" is helping more kids learn how to earn, save, spend and invest their money to get on the path to financial independence.
According to a 2009 Survey of the States conducted by the Council on Economic Education, "personal finance" is included in the educational standards of 44 states (up from 21 in 1998).
There are more interesting things to note from this study. All of them bode well for the future of financial literacy. For example:
- 34 states require standards to be implemented,
- 13 states require a personal finance course (or including the subject in an economics course) for high school graduation,
- 9 states require testing of student knowledge.
To help encourage financial literacy, some state treasurers are stepping in to provide resources for parents and teachers. Kansas is a good example. State Treasurer Dennis McKinney says, "As a parent myself, I recommend that parents talk to their children about finances early and often." In offering a reading list on his Web site, he adds, "Reading these books to kids is a great way to communicate the message of financial responsibility."
Here's a sampling of the 117 books on Treasurer McKinney's "Lessons in Financial Education" (LIFE) list:
Preschool - In "Bunny Money" by Rosemary Wells, Max and Ruby go to buy Grandmother a gift, but spend so much money they don't have bus fare home.
Elementary School - In "A Day's Work" by Eve Bunting, a young boy helps his grandfather find a job.
Middle School - In "If You Made a Million" by David M. Schwartz, kids learn about earning, saving and investing money.
High School - "Bud Not Buddy" by Christopher Paul Curtis, a Newbery Medal winner, is the story of a boy who, during the Depression, is determined to fulfill his dreams.
McKinney's office also offers "Tomorrow's Money," a step-by-step guide "to calculate where you are financially and then where you want to be in order to accomplish your financial goals." It includes a budget calculator worksheet, "budgeting for beginners" and a college planner. Similar calculators are available in the Resource Center at YesYouCanOnline.info.
Another reading list is offered by Delaware Treasurer Velda Jones-Potter. Developed by the Delaware Money School for Children to Learn About Finance, it also provides an Adults' Financial Literacy Reading List to use in teaching your children.
Ohio also has a requirement beginning in 2010. Treasurer Kevin Boyce offers "Financial Football" at his Web site plus other games to help students learn about personal finance.
In Illinois, State Treasurer Alexi Giannoulias encourages families to become better money managers. At the Illinois Division of Financial Education Web site, you can get free presentations for schools, community groups and businesses, including "Saving for College," "Avoid the Debt Trap" and "Know Your Credit."
To see what resources are available in your state, check your state treasurer's Web site. Another good resource is the Jump$tart Coalition for Personal Financial Literacy which includes links to the state coalitions. Don't forget the number of free resources here, including our classroom curriculum, e-books, newsletter reprints and articles on earning, saving, spending and investing. Becoming financially literate will help your kids prosper during every "chapter" of their lives.