Released April 17, 2009
ST. PAUL, Minn. — April is National Financial Literacy Month. The intent is to raise public awareness about the importance of financial education. Often when we speak of financial literacy, the emphasis is on youth, but in an economic recession, it’s important for people of all ages to learn about and develop skills in sound money management.
How do young people gain financial literacy?
Financial resource management educators at University of Minnesota Extension ask you to think about your children or the children around you.
- Do they take a course in school that involves financial literacy?
- Do they receive an allowance with which they manage their spending?
- Do you involve your children with limited decision making so they can practice making decisions?
- Do you discuss some financial matters as a family so the children understand that discussion and compromise are often a part of financial decisions?
- Do you discuss use of credit with children when they see you using credit?
- Do they have savings accounts in which they regularly deposit money?
All of these activities promote an understanding of money management in daily life. Helping children to understand decision making, spending, saving, and wise credit use gives them the confidence to make decisions in the future. You may not think this is that important for children, but consider this information from the National Endowment for Financial Education: As little as 10 hours of financial education can influence the financial knowledge and practice of young people. In a society where personal saving rates are at an all time low and credit is plentiful, every little bit of financial literacy helps our youth to be better prepared.
As we face the current financial situation and its impacts on most families, consider how to increase your financial literacy knowledge and skills. Do you want to improve your decision-making skills or learn how to develop and manage a spending plan? Have you seen a copy of your credit report recently and do you understand how your report and score impact your financial life? Have you made and implemented plans for your retirement years?
Youth financial literacy resources and links are available from University of Minnesota Extension at http://www.extension.umn.edu/Youth&Money. Financial literacy resources and links for adults are available from University of Minnesota Extension at http://www.extension.umn.edu/ResourceManagement/ and at http://www.extension.umn.edu/FinancialSecurity/.
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http://www.extension.umn.edu/extensionnews/2009/april-financial-literacy.html
Contact: Catherine Dehdashti, (612) 625-0237, ced@umn.edu
