Tag Archives: Financial Literacy

Future Generations Will Struggle with Finances Without Intervention, Purdue economic education expert says

11 Apr

Unless there’s some type of intervention, it’s likely future generations will continue to face the same financial struggles that many Americans experience today, according to an economic education expert at Purdue University.

It’s a gloomy forecast. Adults are now in more debt than they were during the recession about 10 years ago, and unprepared for retirement — or even a $400 emergency, according to a Federal Reserve Survey of Consumer Finances.

With April recognized as National Financial Literacy Month, it’s a good time to assess whether we’re doing an adequate job of teaching children about finances and money management, said Jeff Sanson, executive director of the Indiana Council for Economic Education (ICEE) at Purdue University’s Department of Agriculture Economics.

“If you want to thrive and survive in our economy, you need a level of financial literacy to enable you to make sound decisions as well as avoid becoming a victim of a financial mistake or misstep,” Sanson said. “You can mitigate many of those mistakes if you can put together a sound financial plan.”

Sanson said, it’s important to build a foundation early. “As soon as a kid knows to ask for something, even if it’s candy or a toy, you can start having conversations about finances,” he said. “It could be as simple as helping them understand that there is a limited amount of resources and how to prioritize what they want. Maybe they want two things. Help them understand the importance of making choices.”

As part of ICEE, Sanson assists teachers throughout Indiana with economic education programs designed to reach K-12 students. Each year, ICEE offers workshops for teachers as well as provides innovative ways for them to help students learn economics, personal finance and entrepreneurship.

The organization also hosts economic camps for teachers and students, economic competitions for students, and hands-on games and lesson plans for classrooms.

One of its most recent initiatives is an app that helps elementary school students learn economics and entrepreneurship through scenarios guided by Herschel, a feisty puppet dog who still has a lot to learn when it comes to money matters. The app is part of the KidsEcon Project, a series of DVDs, books, teaching guides available through ICEE.

“We don’t talk about money matters enough with kids,” Sanson said. “There’s clear evidence that financial literacy and economic literacy are marginalized because of other instructional mandates.

“However, financial literacy is critical. Students need to understand the importance of how a college education or other training beyond high school can help them get into specific careers, as well as the importance of managing the funds they earn,” he added.

Sanson noted that those lessons can be difficult to teach in an engaging and relevant way for kids. He said many teachers often lack the resources required to support those programs in the classroom, while many parents and caregivers consider those types of conversations tough because of their own issues with finances.

“It’s a very personal subject,” said Sanson, pointing to one study that revealed that even teachers have reported being uncomfortable with their own financial literacy even though they were required to teach it.

“Americans, in general, struggle with this topic,” he said. “I think people struggle with talking about money because they’re not comfortable with their own level of knowledge. They may not be making the best spending decisions so there’s reticence in starting those conversations.”

He also noted that families tend to be private about their income or how they’re doing financially. Even with that, parents can have discussions that can help their children understand income is not unlimited.

“Parents are constantly making choices for the family,” he noted. “Include children in those conversations. Have a monthly meeting in which you’re discussing the budget for the household — outlining short-, medium- and long-term goals.”

Those conversations can include plans for a summer vacation, and the ways that the family can cut expenses elsewhere to make the vacation a reality, Sanson said. Those same lessons could apply for a household item like a big-screen television. “Demonstrate good examples for kids to follow without weighing them down with discussions on how they’re going to be short on bills this month.”

In Indiana, personal finance instruction, which includes the topics of earning income, savings, budgeting, money management, insurance, credit and borrowing, has been mandatory for middle school and high school students since 2009.

However, Sanson points out, “while about half the schools go as far as to require students to take the personal finance course, there is no state course requirement.”  According to the national Council for Economic Education’s 2016 Survey of the States, only 17 states require students to take a personal finance course prior to graduation.

“No one is saying it’s not important,” Sanson added. “It’s just not at the top of the priority list.”

Educational support materials, including assessments, guides, curriculum, and apps, are available through ICEE at www.econed-in.org/resources.asp.

Source: Jeff Sanson, jjsanson@purdue.edu, (765) 494-0188

Writer: Shari Finnell, sfinnell@purdue.edu, (765) 494-2722

Agricultural Communications: (765) 494-8415;
Shari Finnell, Manager/Media Relations and Public Information, sfinnell@purdue.edu
Agriculture News Page

5 Personal Financial Management Tips

21 Mar

Financial freedom can help reduce your stress levels immensely. That doesn’t mean you need to be living a life of luxury, but you do need to ensure that your finances are under control. According to Will Smith, “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t […]

via 5 Personal Financial Management Tips  — Stay Strong, Daily Warrior!

10 Steps to Financial Success

9 Aug

  1. Assess your station in life

    Taking an honest look at your wants and needs can help you prioritize what is most important to you right now. Do you feel good about your current station in life? Are you headed in the right direction?

  2. Plan for life changes

    Almost without exception, your needs are going to be different in five years than they are now. Whether you will be graduating, getting married, having children, or switching careers, there will be changes to account for. The best thing you can do is to be prepared for them.

  3. Invest in yourself10 financial tips portrait.jpg

    The one person you have to live with your entire life is you. Taking care of yourself mentally, financially, and physically on a consistent basis will reap lifelong benefits. In addition, challenge yourself to improve and try new things because a good investment should focus on growth, not staying the same.

  4. Write down your goals

    Having goals gives you something to work toward. Writing these goals down makes your plans concrete and more likely to materialize.

  5. Keep adequate records

    In addition to keeping track of tax and other documents for an appropriate length of time, you also want to keep records of your spending habits. You might feel like you’re spending too much on something, like eating out, but being able to track your spending will help you find out for sure.

  6. Pay yourself first

    Saving money can be simple or nearly impossible. If you take money from your paycheck and immediately deposit it into a savings account, it’s easy (completely effortless if via direct deposit). If you try to scrape together what’s left at the end of a pay period and deposit it to savings, or keep it sitting in your checking account, it’s almost impossible. Be sure your bills are paid, but consider setting aside a certain amount for savings each pay period.

  7. Cut expenses

    Even the most frugal among us have places where we can afford to cut costs in some capacity. For the average person, things like reducing bills, food costs, or under-used entertainment and gym memberships can make a significant financial impact in the short term.

  8. Spend much less than you earn

    Spending just a little less than you earn is a good way to perpetually live paycheck to paycheck. However, if you can reshape your

  9. Pay down your debt

    Debt can be an enormous stressor and it doesn’t get better by itself. Every dollar that you can pay back ahead of time is a dollar that doesn’t collect interest. This can save you a lot of money in the long run.

  10. Create a budget and stick to it

    After you’ve gone through the first nine steps, this one is easy. Once you have an honest assessment of where you are and where you’re hoping to go, you can begin creating your budget. Design your budget so that you can pay for your needs, as well as the wants you have prioritized. The key is following through on your budget! Remember that the budget is simply a spending plan of where you want your funds to go. If you fail to follow through, you will hurt yourself, both now and in the future.

Win a $50 Gift Card!!!! Round 3

17 Feb

CashCourse E~Scavenger Hunt Round 3

www.purdue.edu/mymoney

Photo By: trak.canews

Photo By: trak.canews

You have come this far and are so close to the $50 AMAZON GIFT CARD PRIZE.  There are two weeks left to complete the E~Scavenger Hunt.  You have until February 28th at midnight to complete ALL of the scavenger hunt questions. You can find the first round of questions here, the second round of questions can be found here.   You can view rules and regulations in our previous article posting.  Participate and answer all questions correctly you can WIN A $50 AMAZON GIFT CARD!!

 

The third week’s questions are:

 

1.) You can insure your car against most types of loss-except depreciation-but one type of insurance is more important than any of the others.  Which is it?

a. Collision Insurance

b. Liability Insurance

c. Theft Insurance

 

2.) What can happen if you fill out your Form W-4 incorrectly?

a. You risk going to jail

b. You can end up withholding too much or prepaying too little federal tax

c. You’ll have to pay a penalty to the IRS

 

3.) What is a healthcare plan premium?

a. The amount that you pay each time you visit the doctor’s office

b. A more costly plan, with more services

c. The portion of medical bill that you must pay before coverage kicks in

d. The cost of buying coverage

Photo By: OpenSeaMap

Photo By: OpenSeaMap

On February 24th the 4th round of questions will be released and you will have until MIDNIGHT February 28th to complete all 12 questions.  If you complete all 12 questions by the deadline you could win a $50 AMAZON GIFT CARD!

To find the answers you will need to create a user account at CashCourse.  Once you have entered CashCourse, you will be able to find the answers by browsing through CashCourse materials or by completing assignments in “My CashCourse Planner”.  In the assignments section of CashCourse you will need to choose a professor.  For all questions and assignments relating to the E~Scavenger Hunt, Brandon M. Endsley will be your professor.  You can send answers to Professor Endsley through email at mymoney@purdue.edu or Tweet your answers to @mymoneypurdue using #CashCourse.  You will have until midnight, February 28th to send in your answers.  Answers submitted after the deadline will not be accepted.

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