Parents are the main influence in elementary
years so training aimed at parents is important.
Children should be taught to resist "buy"
messages, to evaluate purchases, and to save. Thrifty parents are one of
the strongest indicators of financially competent people.
Middle school is a good time to teach
concepts of the time value of money.
Resist "buy" messages.
Differentiate between wants and needs.
Budgeting and record keeping.
Manage and evaluate use of credit cards.
Manage student debt.
Interest rates and duration.
Investments. Risk and return. Asset
Learn the 16 basic financial literacy
Set financial goals.
Creating a personal budget.
Effective home purchase and trade-up
Maximize employee benefits.
Purchase insurance for risk management.
Maximize after-tax returns by effective
tax planning and use of tax-advantaged instruments such as IRAs, etc.
Revisit budget with every life change.
Revisit financial goals with each life
change (marriage, children, job change, etc.).
Evaluate and monitor asset acquisition
for major financial goals.
Continue evaluation of insurance needs
and reevaluate providers on a regular basis.
Regular evaluation of use and choice of
Prior to retirement evaluate payout options.
Manage transition in health care and
evaluate and secure options for gaps.
Reevaluate insurance needs with change in
Learn how to preserve savings and manage
Making a large purchase (video game player)
can be a good teaching moment if the child is required to save for it
over time, contribute part of savings to college, and evaluate how
to make the best purchase.
Saving and investing in a car can be a good
learning experience. Students should be taught to evaluate options,
purchase insurance and make the best decision.
For college students, seeking financial aid
is a key teaching moment on the assumption of major debt.
Purchase of home.
New job orientation.
Arrival of children.
Change in job (Promotion or demotion).
Periods of underemployment.
Periods of self-employment.
Dropping out of the workforce to care for
Returning to the workforce.
Taking care of parents.
Death in family
Actions to teach
Incorporate training in middle schools.
Start bank account for college savings.
Hypothetical stock portfolios can be good
teaching tools if maximum short-term gain is not the objective.
Incorporate training in high schools.
Workplace training and one-on-one
consultations are effective.
Churches or other community groups.
Monitor and reevaluate.
Pre-retirement training. Regular training in
senior communities and centers.