MONEY AS YOU GROW
20 Things Kids Need to Know to Live Financially Smart Lives
Presented by Beth Kobliner
Presidents Advisory Council on Financial Capability
Youth Subcommittee:
Amy Rosen (Chair), Ted Beck, John Bryant, Samuel Jackson,
Beth Kobliner, John Rogers (ex-officio), Sherry Salway Black,
Carrie Schwab-Pomerantz
To see the full presentation, go to moneyasyougrow.org
20 THINGS KIDS NEED TO
KNOW TO LIVE FINANCIALLY
SMART LIVES
17
13
Its important to KNOW
WHAT A COLLEGE
WILL COST you before
choosing it.
14
9
You should SAVE AT
LEAST A DIME for every
dollar you receive.
10
Entering a credit card
number online is risky
because someone
could STEAL YOUR
INFORMATION.
5
You need to MAKE
CHOICES about how
to spend your money.
11
6
1
YOU NEED MONEY
to buy things.
Its good to shop around
and COMPARE PRICES
before you buy.
7
You earn money by
WORKING.
It can be costly
and DANGEROUS
TO SHARE
INFORMATION online.
You may have to
WAIT BEFORE YOU
CAN BUY something
you want.
Putting your money in
a savings account will
PROTECT it and pay
you interest.
The earlier you start to
save, the faster youll
benefit from compound
interest, which means
YOUR MONEY EARNS
INTEREST on your
interest.
You should AVOID
USING CREDIT
CARDS to buy things
you cant afford to
pay for with cash.
15
Your first paycheck
may seem smaller
than expected since
MONEY IS TAKEN
OUT FOR TAXES.
You should use a credit
card only if you can
PAY OFF THE MONEY
OWED IN FULL
each month.
18
You need HEALTH
INSURANCE.
19
Putting all your eggs
in one basket can be
a risky way to invest;
consider a DIVERSE
MIX OF STOCKS,
BONDS, AND CASH.
20
Always consider
two factors before
investing: THE RISKS
AND THE ANNUAL
EXPENSES.
16
A great place to
SAVE AND INVEST
MONEY you earn is
in a Roth IRA.
12
A CREDIT CARD IS A
TYPE OF LOAN; if you
dont pay your bill in
full every month, youll
be charged interest and
owe more than you
originally spent.
4
Theres a difference
between THINGS YOU
WANT and things you
need.
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
3-5
YRS
6-10
YRS
11-13
YRS
14-18
YRS
18+
YRS
17
13
Its important to KNOW
WHAT A COLLEGE
WILL COST you before
choosing it.
9
You should SAVE AT
LEAST A DIME for every
dollar you receive.
10
5
You need to MAKE
CHOICES about how
to spend your money.
6
1
YOU NEED MONEY
to buy things.
Its good to shop around
and COMPARE PRICES
before you buy.
7
You earn money by
WORKING.
It can be costly
and DANGEROUS
TO SHARE
INFORMATION online.
You may have to
WAIT BEFORE YOU
CAN BUY something
you want.
Putting your money in
a savings account will
PROTECT it and pay
you interest.
4
Theres a difference
between THINGS YOU
WANT and things you
need.
Entering a credit card
number online is risky
because someone
could STEAL YOUR
INFORMATION.
11
The earlier you start to
save, the faster youll
benefit from compound
interest, which means
YOUR MONEY EARNS
INTEREST on your
interest.
12
A CREDIT CARD IS A
TYPE OF LOAN; if you
dont pay your bill in
full every month, youll
be charged interest and
owe more than you
originally spent.
14
You should AVOID
USING CREDIT
CARDS to buy things
you cant afford to
pay for with cash.
15
Your first paycheck
may seem smaller
than expected since
MONEY IS TAKEN
OUT FOR TAXES.
16
A great place to
SAVE AND INVEST
MONEY you earn is
in a Roth IRA.
You should use a credit
card only if you can
PAY OFF THE MONEY
OWED IN FULL
each month.
18
You need HEALTH
INSURANCE.
19
Putting all your eggs
in one basket can be
a risky way to invest;
consider a DIVERSE
MIX OF STOCKS,
BONDS, AND CASH.
20
Always consider
two factors before
investing: THE RISKS
AND THE ANNUAL
EXPENSES.
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ABOUT
RESOURCES
POSTER
3-5
6-10
11-13
14-18
YRS
YRS
YRS
YRS
18+
YRS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
YOU NEED MONEY
to buy things.
You earn money
by WORKING.
You may have to
WAIT BEFORE
YOU CAN BUY
something you
want.
Theres a difference
between THINGS
YOU WANT and
things you need.
ACTIVITIES
ACTIVITIES
ACTIVITIES
ACTIVITIES
MILESTONES FOR 3-5 YEAR OLDS
ABOUT
RESOURCES
POSTER
6-10 11-13 14-18
YRS
YRS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ACTIVITIES TO HELP YOUR KIDS
REACH THIS MILESTONE
3
You may have to
WAIT BEFORE
YOU CAN BUY
something you
want.
oney
G.
ACTIVITIES
Theres a You
dif
WA
between THI
YOa
YOU WANT
things yousom
n
wa
When your child is standing in line for a turn
on the swings, or looking forward to her favorite
holiday, point out that sometimes we have to
wait for things we want.
ACTIVITIES
Find three jars (or cans) and label one for
saving, one for spending, and one for sharing.
Suggest that your child put some of the money
she gets into the saving jar, so she can buy a toy
or treat when she has saved enough.
MILESTONES FOR 3-5 YEAR OLDS
ABOUT
RESOURCES
POSTER
6-10 11-13 14-18
YRS
YRS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
You need to MAKE
CHOICES about
how to spend your
money.
Its good to shop
around and
COMPARE PRICES
before you buy.
It can be costly
and DANGEROUS
TO SHARE
INFORMATION
online.
Putting your
money in a savings
account will
PROTECT it and
pay you interest.
ACTIVITIES
ACTIVITIES
ACTIVITIES
ACTIVITIES
3-5
MILESTONES FOR 6-10 YEAR OLDS
YRS
ABOUT
RESOURCES
POSTER
11-13 14-18
YRS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ACTIVITIES TO HELP YOUR KIDS
REACH THIS MILESTONE
stly
ROUS
Putting your
money in a savings
account will
PROTECT it and
pay you interest.
ON
ACTIVITIES
ACTIVITIES
Visit a nearby federally insured bank or
credit union with your child.
Ask about the interest rates on
a savings account.
Discuss with your child how money in savings
accounts is protected by federal insurance.
If the bank goes out of business, she will get
her money back.
Open a savings account for your child.
3-5
MILESTONES FOR 6-10 YEAR OLDS
YRS
ABOUT
RESOURCES
POSTER
11-13 14-18
YRS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
10
11
12
You should SAVE
AT LEAST A DIME
for every dollar
you receive.
Entering a credit
card number
online is risky
because someone
could STEAL YOUR
INFORMATION.
The earlier you
start to save,
the faster youll
benefit from
compound interest,
which means YOUR
MONEY EARNS
INTEREST on your
interest.
A CREDIT CARD IS
A TYPE OF LOAN;
if you dont pay
your bill in full
every month, youll
be charged interest
and owe more
than you originally
spent.
ACTIVITIES
ACTIVITIES
ACTIVITIES
ACTIVITIES
3-5
6-10
YRS
YRS
ABOUT
RESOURCES
MILESTONES FOR 11-13 YEAR OLDS
POSTER
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
ACTIVITIES
14-18
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ACTIVITIES TO HELP YOUR KIDS
REACH THIS MILESTONE
11
credit
ial
mber
you at
meone
YOUR
ON.
The earlier you
start to save,
the faster youll
benefit from
compound interest,
which means YOUR
MONEY EARNS
INTEREST on your
interest.
ACTIVITIES
Show your child the following: If he sets aside
$100 every year starting at age 14, hed have about
$23,000 at age 65. However, if he begins saving at
age 35 hed have about $7,000 at age 65. Assume
the account earns 5% every year.
To compute compound interest, use
the calculators at investor.gov.
Discuss how much your child can save.
What will he have to give up? Is it worth it?
12
11
A CREDIT
The
CA
e
A TYPE start
OF L
if you dont
the fp
bill in full
bene
ev
month, comp
youl
chargedwhic
inte
and oweMON
mo
than youINTE
orig
spent. inter
ACTIVITIES
3-5
6-10
YRS
YRS
ABOUT
RESOURCES
MILESTONES FOR 11-13 YEAR OLDS
POSTER
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
14-18
YRS
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
13
14
15
16
Its important to
know WHAT A
COLLEGE WILL
COST you before
choosing it.
You should
AVOID USING
CREDIT CARDS
to buy things you
cant afford to pay
for with cash.
Your first paycheck
may seem smaller
than expected since
MONEY IS TAKEN
OUT FOR TAXES.
A great place to
SAVE AND INVEST
MONEY you earn is
in a Roth IRA.
ACTIVITIES
ACTIVITIES
ACTIVITIES
ACTIVITIES
3-5
YRS
ABOUT
6-10 11-13
YRS
MILESTONES FOR 14-18 YEAR OLDS
YRS
RESOURCES
POSTER
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ACTIVITIES TO HELP YOUR KIDS
REACH THIS MILESTONE
If your child has a job, encourage him to open
a Roth IRA (Individual Retirement Account).
16
aycheck
maller
ed since
AKEN
AXES.
A great place to
SAVE AND INVEST
MONEY you earn is
in a Roth IRA.
ACTIVITIES
ACTIVITIES
Explain that a Roth IRA allows the interest you
earn to grow tax-free for life.
Experiment with different amounts of savings and
interest rates. Use a compound interest calculator
at investor.gov.
Use the Rule of 72 to estimate how many years
it would take to double your money.
If you invest in an account that earns
8% interest, youll double your money in
nine years (72 divided by 8 is 9).
Explain to your child that once he starts a job, he
may be offered a similar account at work called a
401(k). Some employers even provide matching
contributions.
3-5
YRS
ABOUT
6-10 11-13
YRS
MILESTONES FOR 14-18 YEAR OLDS
YRS
RESOURCES
POSTER
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
18+
YRS
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
17
18
19
20
You should use a
credit card only if
you can PAY OFF
THE MONEY
OWED IN FULL
each month.
You need HEALTH
INSURANCE.
Putting all your
eggs in one basket
can be a risky way
to invest; consider
a DIVERSE MIX OF
STOCKS, BONDS,
AND CASH.
Always consider
two factors before
investing:
THE RISKS AND
THE ANNUAL
EXPENSES.
ACTIVITIES
ACTIVITIES
ACTIVITIES
3-5
YRS
ABOUT
6-10 11-13 14-18
YRS
YRS
RESOURCES
YRS
POSTER
MILESTONES FOR 18+ YEAR OLDS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
ACTIVITIES
20 THINGS KIDS NEED TO KNOW TO LIVE FINANCIALLY SMART LIVES
ACTIVITIES TO HELP YOUR KIDS
REACH THIS MILESTONE
Invest in an IRA or a 401(k) as soon as you
have some income.
19
EALTH
E.
Putting all your
eggs in one basket
can be a risky way
to invest; consider
a DIVERSE MIX OF
STOCKS, BONDS,
AND CASH.
ACTIVITIES
ACTIVITIES
Understand that investments have different levels
of risk; learn the advantages and disadvantages
of investment products, such as stocks, bonds, and
mutual funds.
Ask for the annual expense ratio, and compare
it to that of other mutual funds before you invest.
Understand any commissions or fees youll pay
to a broker if youre buying stocks and bonds.
Ask about index funds, which tend to have low
annual fees.
3-5
YRS
ABOUT
6-10 11-13 14-18
YRS
YRS
RESOURCES
YRS
POSTER
MILESTONES FOR 18+ YEAR OLDS
BETH KOBLINER, PRESIDENTS ADVISORY COUNCIL ON FINANCIAL CAPABILITY
20
19
Always Putti
cons
two factors
eggsb
investing:
can b
THE RISKS
to inv
A
THE ANNUA
a DIV
EXPENSES.
STOC
ANDA
The following resources were reviewed in the process:
Standards and curricula
Council of Chief State School Officers and the
National Governors Associations Common Core
State Standards for Mathematics
Council for Economic Educations Financial Fitness for Life
Jump$tart Coalitions National Standards
Junior Achievements $ave USA
National Endowment for Financial Educations
High School Financial Planning Program
Network for Teaching Entrepreneurships Your Financial Future
Schwabs MoneyWise
Sesame Workshops For Me, for You, for Later:
First Steps to Spending, Sharing, and Saving
Treasury and Financial Literacy and Education Commissions
Financial Education Core Competencies
Treasurys Money Math: Lessons for Life
Wisconsins Model Academic Standards
for Personal Financial Literacy
Academic papers
Ashraf, Nava, Dean S. Karlan, and Wesley Yin. (2004). SEED:
A Commitment Savings Product in the Philippines. (Policy Paper).
Dhar, Ravi, Joel Huber, and Uzma Khan. (2005). The Shopping
Momentum Effect. Journal of Marketing Research.
Dupas, Pascaline, and Jonathan Robinson. (2011). Why Dont the Poor
Save More? Evidence from Health Savings Experiments.
The National Bureau of Economic Research.
Holden, Karen. (2009). Financial Literacy Programs Targeted on
Pre-School Children: Development and Evaluation. La Follette School
Working Paper No. 2009-009.
Lusardi, Annamaria. (2007). The Importance of Financial Literacy:
Evidence and Implications for Financial Education Programs.
Policy brief.
Mandell, Lewis. (2009). Two Cheers for School-Based
Financial Education. Issue brief: The Aspen Institute Initiative
on Financial Security.
Moffitt, Terrie E., et al. (2011). A Gradient of Childhood Self-control
Predicts Health, Wealth, and Public Safety. Proceedings of the National
Academy of Sciences of the United States of America (PNAS).
Madrian, Brigitte C., and Dennis F. Shea. (2001). The Power of
Suggestion: Inertia in 401(k) Participation and Savings Behavior.
The Quarterly Journal of Economics.
Norton, Michael, and Leonard Lee. (2007). The Fees > Savings Link,
or Purchasing Fifty Pounds of Pasta. Harvard Business School
Marketing Research Paper No. 08-029.
Pleskac, Timothy J., et al. (2010). A Detection Model of College
Withdrawal. Organizational Behavior and Human Decision Process.
Prelec, Drazen, and Duncan Simester. (2000). Always Leave Home
Without It: A Further Investigation of the Credit-Card Effect on
Willingness to Pay. Marketing Letters, 12:1, 5-12.
Sherraden, M.S. (2007). From Financial Literacy to Financial
Capability Among Youth. Journal of Sociology and Social Welfare
34(3), 119-145.
Shim, Soyeon, et al. (2009). Financial Socialization of First-year College
Students: The Roles of Parents, Work, and Education.
Journal of Youth and Adolescence, 39(12), 1457-1470.
Education Pays. Bureau of Labor Statistics, 2011.
Shim, Soyeon, and Joyce Serido. (2011). Young Adults Financial
Capability: APLUS Arizona Pathways to Life Success for University
Students Wave 2. Take Charge America Institute for Consumer
Financial Education and Research.
Hershfield, Hal E., et al. (2011). Increasing Saving Behavior
Through Age-Progressed Renderings of the Future Self.
Journal of Marketing Research.
Staten, Michael. (2007). Academic Success and Well-Being of College
Students: Financial Behaviors Matter. Take Charge America Institute
for Consumer Financial Education and Research.
Hira, Tahira K. (2010). Childhood Consumer Experience and the
Financial Literacy of College Students in Malaysia. Family & Consumer
Sciences Research Journal, 38, 4, 455-467.
Tisdell, Elizabeth J., Edward W. Taylor, and Karin Sprow. (2010).
Financial Literacy Education for Adult Learners in Community-Based
Programs: Report on the Mixed Method Study of Financial Educators.
The National Endowment for Financial Education (NEFE).
Hogarth, Jeanne M. (2003). Household Financial Management:
The Connection between Knowledge and Behavior. Federal Reserve
Bulletin July 2003, 309-322.
Ulkumen, Gulden, and Amar Cheema. (2011). Framing Goals to
Influence Personal Savings: The Role of Specificity and Construal
Level. Journal of Marketing Research.
With gratitude to the following experts for sharing their time and insights:
Presidents Advisory Council on
Financial Capability: Youth Subcommittee
John Rogers, Chair, Presidents Advisory Council
on Financial Capability, and Chairman, CEO, and Chief
Investment Officer of Ariel Investments
Karen C. Holden, University of Wisconsin-Madison
Chuck Kalish, University of Wisconsin-Madison
Punam Anand Keller, Tuck School of Business at
Dartmouth
Amy Rosen, Vice Chair, Presidents Advisory Council
on Financial Capability, Chair, Youth Subcommittee,
and President and CEO of the Network for
Teaching Entrepreneurship
Claudia Kerbel, University of Rhode Island
Ted Beck, President and CEO of the National
Endowment for Financial Education
Laura Levine, Jump$tart Coalition
John Bryant, Founder, Chairman, and CEO of
Operation HOPE
Harold Kobliner
Shirley Kobliner
Annamaria Lusardi, George Washington University
School of Business
Lewis Mandell, The Aspen Institute
Samuel Jackson, Founder, Chairman, and CEO of the
Economic Empowerment Initiative, Inc.
Kristen McDaniel, Wisconsin Department of Public
Instruction
Sherry Salway Black, Director of the Partnership for
Tribal Governance at the National Congress of American
Indians
Nan J. Morrison, Council for Economic Education
Carrie Schwab-Pomerantz, President of the Charles
Schwab Foundation
Mary Rosenkrans, Pennsylvania Office of Financial
Education
Other experts
Patricia Seaman, National Endowment for Financial
Education
Brenda Barr, Colorado Department of Education
J. Michael Collins, University of Wisconsin Madison
Adrian Franco, Columbia University
Mary Hagerty, Operation HOPE
Luke Rhine, Maryland State Department of Education
Margaret Sherrard Sherraden, Center for Social
Development at Washington University in St. Louis
Robert I. Solomon, Ariel Investments
Martha Staten
Julie Heath, University of Memphis
Michael E. Staten, Take Charge America Institute at
the University of Arizona
Jim Hedemark, Rhode Island Jump$tart Coalition
Jennifer Thibeaux, Operation HOPE
Billy J. Hensley, National Endowment for Financial
Education
Richard M. Todd, Federal Reserve Bank of Minneapolis
Tahira K. Hira, Iowa State University
Jeanne M. Hogarth, Board of Governors of the
Federal Reserve System
Lois A. Vitt, Institute for Socio-Financial Studies
William B. Walstad, University of Nebraska-Lincoln
