John Lanza - Teach Kids About Money for CA Jump$tart


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It is imperative that we teach preschool and elementary kids about the value of money. They can and must learn good habits early so that they become financially literate teens and adults.

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  • John Lanza - Teach Kids About Money for CA Jump$tart

    1. 1. Teach Kids the Value of Money
    2. 2. There’s Never Been A Better Time!
    3. 3. Catherine Pulley, American Bankers Association “ Financial literacy is a basic survival skill that is as important as teaching kids to look both ways before crossing the street.”
    4. 4. We teach them… The ABCs To Eat Right Reading, ‘Riting, ‘Rhythmatic
    5. 5. The Fourth “R” Real World -Robert Duvall NCEE
    6. 6. Missing Financial Literacy
    7. 7. This Must Change
    8. 8. We Don’t Have A Choice
    9. 9. The “Perfect Storm” <ul><li>Retirement Responsibility </li></ul><ul><li>Social Security </li></ul><ul><li>401Ks </li></ul><ul><li>No more employer-provided defined benefit plans </li></ul><ul><li>Easily accessible consumer credit </li></ul><ul><li>Movement towards a cashless society </li></ul><ul><li>Increasingly sophisticated marketing techniques </li></ul>
    10. 10. Lack of Education
    11. 11. Establish Money Smarts Younger!
    12. 12. What about the schools?
    13. 13. Reality Check Jump$tart high school survey Mean Score = 52.4% Proportion failing exam = 62%
    14. 14. What percent of parents believe that schools provide classes on money management and budgeting to their students?
    15. 15. 80%
    16. 16. Reality Check In most cases, economics and personal financial literacy programs are elective classes so “ only 12% of Americans graduate from high school having learned anything about money at all. ”
    17. 17. <ul><li>No National Standards </li></ul><ul><li>It’s up to Jump$tart </li></ul><ul><li>It’s up to Parents </li></ul>
    18. 18. Are parents up to task? 71% of teens report learning about money management from parents yet… only 26% of parents with children 5 or older feel well prepared to teach their kids about basic personal finances.
    19. 19. Reality Check A financial literacy “buck” is being passed from parents to teachers and back to parents again. Parents assume that schools are teaching financial literacy, but schools, by and large, are not teaching it. Teachers, like parents, don’t feel comfortable teaching it. -John Clow, Jump$tart
    20. 20. Parents Need Help!
    21. 21. How Young Can They Learn? ''About half of the kids picked saving for college for their long-term savings goal — at 8 years old ,'' Justin Goia, an A.G. Edwards spokesman, said of interviews with kids involved in a program aimed at teaching third-graders to save and invest. ''What it told us was that kids this age had the capacity , intelligence and desire to make thoughtful decisions about their future .’’
    22. 22. Children are already a major target audience for advertisers. American companies currently spend _______ a year on marketing and advertising to children under the age of 12—twice the amount they spent just 10 years ago.
    23. 23. $15 billion
    24. 24. Each year, the average child sees about _________ ads on television alone.
    25. 25. 40,000
    26. 26. Strong Forces Working Against Financial Literacy
    27. 27. Americans consume
    28. 28. The inspiration
    29. 29. Money Mammals Theme Song Plays Here
    30. 30. A Better Brand <ul><li>Three-pronged approach </li></ul><ul><ul><li>Share </li></ul></ul><ul><ul><li>Save </li></ul></ul><ul><ul><li>Spend Smart </li></ul></ul><ul><li>Engage kids </li></ul>
    31. 31. Ages 5-8 <ul><li>Needs vs. Wants </li></ul><ul><li>Making Choices </li></ul><ul><li>Sharing, Saving, Spending Smart </li></ul><ul><li>Allowance </li></ul><ul><li>Money Spent = Money Gone </li></ul><ul><li>Saving is Good </li></ul><ul><li>Delayed Gratification </li></ul>
    32. 32. Delayed Gratification
    33. 33. Children under the age of eight do not recognize the persuasive intent of ads and tend to accept them as accurate and unbiased. In fact, 30-second commercials have been found to influence brand preferences in children as young as ______ years old.
    34. 34. Two Years Old!
    35. 35. Two Young??
    36. 36. Emergent Literacy “… it is widely recognized that literacy, as the foundation for virtually all other subject areas, needs to be taught from the very earliest ages; this focus on early childhood literacy is known as emergent literacy.
    37. 37. A Simple Goal Let’s raise a generation of money savvy kids, not a generation of kids whose sole concern is money.
    38. 38. Oscar Wilde “ There is only one class of people who think about money more than the rich. Those are the poor!”
    39. 39. Bonus Benefit! Parents Get It!
    40. 40. Quinn’s Story Started allowance at 4 ½
    41. 41. Quinn’s Story
    42. 42. Quinn’s Story
    43. 43. Money Mammals Challenge <ul><li>Bringing goal-setting home for kids and parents! </li></ul>
    44. 44. Real Life Experience <ul><li>Quinn and Thrive by Five lesson </li></ul>
    45. 45. Saving Money Is Fun! Expanding Reach The Louise Herring Award Best Practices
    46. 46. Kids Club Overview Video Plays Here
    47. 47. Live Events
    48. 48. In the Community
    49. 49. Newsletter
    50. 51. Additional Resources <ul><li>Thrive By Five </li></ul><ul><li>NCEE – incredible resource </li></ul><ul><li>JA “More Than Money” </li></ul><ul><li>Jump$tart Clearinghouse </li></ul><ul><li>Top Three Tips </li></ul><ul><li>Jump$tart Members </li></ul>
    51. 52. We’ve worked with <ul><li>Credit Unions </li></ul><ul><li>Libraries </li></ul><ul><li>CPA Associations </li></ul><ul><li>NYIB </li></ul><ul><li>Anyone on the same mission </li></ul>
    52. 53. When did Americans last save 10% of their income?
    53. 54. 1984 Americans were saving 10% of their disposable income in 1984. It dipped below 0% in 2005. Now we’re saving less than 3%.
    54. 55. Generation 10!
    55. 56. <ul><li>The Money Mammals were cited in Congress as a program that helps teach young kids about the value of money. </li></ul>