Gaining financial knowledge

By Chris Skogman

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Many parents shy away from having the “Birds and the Bees” talk with their children, hoping they'll learn that information elsewhere. The same often happens for many families when it comes to talking about money.

A recent poll conducted by Junior Achievement and the Allstate Foundation found that 92 percent of teens said they learn money management from their parents. However, less than half said they discuss money management as a family.

With economic recovery in the balance, many Americans are grappling with one of the fundamental issues that led to the financial crisis: responsible money management. Many families are taking a hard look at their personal debt and savings, trying to balance the two.

April is Financial Literacy Month - an opportune time for parents to discuss personal finance with their children.

We have known for a long time that there is a general lack of information and understanding about the basics of finances, and the precarious state of the economy has left many wondering if they have the fundamental skills and knowledge to properly manage their household finances. Teens are feeling the crunch too, with 81 percent of teen respondents saying the recession motivated them to learn more about money management. Teens are eager to learn, but do we have the knowledge, skills and motivation to respond?

Being conversant in the principles of personal finances, such as budgeting, balancing a checkbook, establishing good credit and saving, is absolutely essential to make responsible choices and maintain financial health. Junior Achievement offers programs in schools throughout the country that empower teens to make sound financial decisions through experiential learning in financial literacy, money management, investing and budgeting skills.

Locally, Junior Achievement of Eastern Iowa will reach 37,575 students during the 2010-11 school year with these programs - 42.23 percent of the organization's 10-county footprint. And now, Junior Achievement offers free, online lessons for elementary, middle and high school age students that parents can learn from as well.

Financial Literacy Month is the perfect time to kick-start a lifelong process of wise money management decisions. With the right tools, parents can play a pivotal role in teaching sound financial principles to their children. Junior Achievement's real-world curriculum is more relevant now than ever before.

Find out more about Junior Achievement's financial literacy programs in your area. Visit www.jaeasterniowa.org or www.ja.org.

Chris Skogman is president of Skogman Realty of Cedar Rapids. Comments: www.jaeasterniowa.org