Parents, help teach financial literacy

By Steve Hammes

As kids pursue new friends, good grades and college resume-boosting activities this school year, now is the time for parents to reflect upon their own contributions to family and community. It seems like we all have less time - but this fall may be a good time to assess opportunities to volunteer.

In a speech last year at the University of Colorado, President Barack Obama told a graduating class: “I hope you take that moment to think about what you can do to shape the future of this country we love.” According to U.S. Department of Labor, 26.4 percent of Americans volunteered in 2008. While that shows a significant number of people making an effort to give back, it also reveals that three quarters of us are not volunteering.

What better way to help shape our nation's future than by personally investing in our children's education?

There are a few subjects that most students won't be taught: How to manage money. How to create a budget and balance a checkbook. How to avoid credit debt. How to get ready for a job in the real world.

The basics of money management - what we call financial literacy - are essential life skills. While the current economic climate is the result of many factors, few would disagree that better financial decision-making could have lessened the consequences for many families.

Managing money needs to be taught early, before students head off to college or enter the work force. A recent Sallie Mae study showed a surge in the amount of books and tuition that college students are charging to credit cards. A College Board report shows that in 2007, the average student graduated with $22,000 in debt - and the debt loads grow heavier every year.

This year, parents should consider volunteering to teach a financial literacy program that can help students internalize essential money and job skills early on. Junior Achievement of Eastern Iowa Inc. works with local schools to bring business and financial literacy programs into the classroom across all student levels, from kindergarten through 12th grade. With the help of more than 1,200 community volunteers, Junior Achievement will reach 34,487 local K-12 students during the 2009-10 school year.

See what Junior Achievement programs are available in your area and how you can share your personal experiences and expertise to help enrich a child's education and chance for a brighter future. Visit www.jaeast

erniowa.org

Steve Hammes, managing director of Hammes Business Planning, is regional executive board chair with Junior Achievement of Eastern Iowa.