A Penny Saved Is A Penny Earned

In 2007, The Oklahoma House of Representatives passed the Passport to Financial Literacy Act. This act requires students to meet financial education requirements in order to graduate. When I taught Seniors, I can verify many did not have a clue about money. Winning the lottery seemed to be the cure-all for all financial woes. A long term plan for a career and an expected standard of living did not necessarily go hand in hand. Government bail-outs and hand-outs were not just a short term solution, they were a life plan. Lawsuits seemed to be a handy budgeting tool. Getting hurt on the job, another. This all did not bode well for their future or the future of their families, their state or their country.

One of the ways offered to meet the financial literacy requirement is a Reality Check seminar. This is a role -playing event designed to teach teens about the financial responsibilities of adult life. Reality Check assigns teens all the details of an imaginary "grown-up" life: career, salary, marital status and children. Different booths offer opportunities to purchase housing, transportation, food, utilities, child care and- when and if they had extra money-entertainment. Unexpected situations are also navigated, like buying new tires, repairing a broken water heater and earning extra money by selling clothes on consignment.

Our teens don't have to wait for a Reality Check before learning about the value of money. The Institute of Consumer Financial Education lists the following tips:

# As soon as children can count, introduce them to money. Take an active role, because observation and repetition are two methods kids can learn by.
# Communicate with your children abut your values concerning money and how to save it and make it grow-and how to spend it wisely.
# Teach children the difference between needs, wants and wishes. This will prepare them for making good spending decisions in the future.
# Setting goals is a fundamental concept in teaching young people the value of money and also, how to save. Nearly everything a child or teen asks for can become the object of a goal setting session.
#Indoctrinate your children to saving instead of spending. Explain and demonstrate the concept of earning interest on savings. Consider paying interest on money earned at home and have them help you calculate the amount. Let them open a savings account.
# Give your children money in denominations that encourage saving. For example, give them a 5 ones instead of a five dollar bill.
# Allow your teen to make spending decisions, both good and poor, and then encourage a discussion of pros and cons before more spending takes place.
# Teach teens to keep a record of spending, savings and investments.
# Take kids with you to stores and explain how purchases are made.Let them help with a budget and a shopping list.

In 2007, Oklahoma Lawmakers passed the Passport of Financial Literacy. It requires certain financial areas be covered in high school curriculum. Some of these areas are: earning an income, taxes, bank services, fraud, identity theft, saving and investing. The Oklahoma Council On Economic Education is designated by the State of Oklahoma to provide training, materials and support for teaching financial literary in the state. The Council works with the State Department of Education to make sure teachers have what they need to help students learn to make good choices. If you are interested in offering Reality Check at your school, contact the OCEE at moneyisok.org.
chrissie