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National Endowment for Financial Education CEO Ted Beck on how parents and schools can help teach children personal finance skills.
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In focus tonight teaching your kids about money.
Turns out most schools are teaching students even the very basic ideas when it comes to real world financial matters in fact.
-- 5% of Americans who get absolutely no financial literacy education financial education that is.
Before they get to college or even worse than their entire lifetime.
Luckily tonight we've got you covered on everything you need to know about raising -- money Smart kid.
And may be brushing up yourself joining me -- ten bet he's the president.
And CEO of the national endowment for financial education and a member of the president's advisory council on financial capability.
-- welcome to the show great to have you here this is one of my favorite topics.
I've always wondered why can't home economics in school actually be about home economics.
Well there's been a lot of positive developments that area and one of the things that the recession has brought out as a lot more interest in financial education.
And really trying to develop people who are financially capable as they go into adult life.
And we're very encouraged -- -- there's a lot of research that's really helping us direct what education should look like in the what's effective.
You know only thirteen states across the country require some kind of personal finance -- to be taught.
And it seems to me the world would be a better place if people who have about just balancing a checkbook he's.
We have so far to go what's it gonna take to really get a movement going where people actually learn about the basics of money.
Well there is a pretty strong movement and and you're right -- we could do much better in the schools.
The thirteen states -- talking about it actually boils down -- -- states actually test for financial education as a graduation requirement.
So we can improve that and one of the goals of the president's council is to get.
A great deal more youth education in the schools and also to make sure that we're testing to see that it's effective.
Now there's another aspect to it that I think is even more important lot of research that we've done.
There's actually shown that if you look at the young adults who are showing positive behavior they're really three factors that come of that comes from one -- parents part of what.
Their parents have talked to them about money they've engaged in and financial decisions that help them understand what they're doing second one was education.
So they understand some of the basics and third is actually having had a part time job as a teenager so they've seen a paycheck.
They understand how many hours of talks it takes to turn something into cash.
Well and we have a full screen -- right now which shows that interesting results of the survey.
Where did you learn the most about personal finance of 44% of people say home.
That's really I think that the example your mom and dad -- for you.
That's where you learn how to handle money if mom's hiding -- she's spending money.
It's -- if dad is squandering the family finances.
Those -- the lessons you really take home.
Do you think that a program in school can actually impact people's practices.
Yes because it teaches them some of the basics and that reinforces what they've heard at home and maybe behavior -- seen at home and both pluses and minuses.
So you have somebody asked me what's the simplest thing you can do -- talk to your kids about money and this -- a -- this isn't an argument this -- and when something bad has happened.
But explain to them how you've managed -- -- mistakes you've made -- positive things done.
They really do listen and there are very important -- to -- take that -- bill that and of their own months.
I wonder if there was this kind of educational effort.
Maybe at the secondary level and high school that then we get people in the college -- going to college maybe they wouldn't overspend for college maybe they'd watch their Nickels and their pennies much more carefully.
Maybe we'd have lowered debt among college students what do you say.
Everything we've done on the research side of this agrees is exactly what you just that.
If we have more emphasis on this that may be kids won't get into trouble especially as they're young adults.
You know one of the things we've learned is that financial education is cumulative process that goes throughout your life.
That'd be great if we could just say here's a book here's a class now you've done.
But this is something you really have to continually -- throughout that your work life and even when your child.
If you had one thing -- say to parents tonight what what did they.
Talk your kids about money and if you don't know what to say there's some great resources out there that'll help build discussion.
We can go to our website Smart about money dot org the Federal Reserve you're just talking about -- they've got some very good website.
Called the -- Federal Reserve education.
And also the jumpstart coalition has great clearing house.
With a wider range of non commercial.
Unbiased information that you can use to really start that discussion with your kids but.
Basic messages talk to children about money -- -- -- about everything Chad thanks for -- not tonight really appreciate your time.
Great thanks for having me -- thank you.
