Why is youth education important?
The lack of financial literacy in America is troublesome. Only 27% of Americans state they feel well-informed about managing their household finances. While parents are generally considered the primary source of financial education for their children, only 26% feel competent about teaching personal finances to their children. The younger children are when they learn the basics of financial education, the more astute they will be as consumers regardless of age. Youth are likely to know more about their iPods than personal finance.Why should credit unions care?
Credit union membership is aging. It is vital to the future of credit unions to attract and retain younger members. But it is also critical that these younger members have the financial knowledge to save and borrow money responsibly. Many are not learning these skills either at home or in school. A further problem is that many young people are not familiar with credit unions. So even if they have good financial skills they may be taking those to banks.What can credit unions do?
Credit unions can become active in their area elementary and high schools and teach financial literacy. Many states are beginning to mandate that financial education be taught in high schools, but schools don’t have the resources or perhaps even the skills to teach financial literacy. Credit unions can step in and fill those voids and make the learning process fun, as well as informational.High Plains
Stash Yo Cash » View details
A free on-line virtual stock exchange game is used to introduce freshmen to the ups and downs of the stock market. Each student starts with $100,000 to invest and each selects a portfolio of stocks and buys and sells based on real market conditions.Heartland
Mad City Money » View details
In October 2009, approximately 1,300 high school students took part in CUNA’s Mad City Money through a partnership between Heartland CU and four Madison public high schools. Mad City Money is a budgeting simulation program for teens that teaches them the realities of living life as an adult.Arapahoe
Seeds for Financial Success » View details
The Director of Financial Education at Arapahoe CU has made 254 presentations to 6,000 students in Centennial’s seven school districts on budgeting, checking account basics, identity theft, purchasing a car and the uniqueness of credit unions. Students are encouraged to join the credit union to put their new skills to work.Suggested Pilot Programs
Lot$a Mot$a » View details
Lot$a Mot$a is an Interactive Money Lab concept that grew from Filene Research Institute’s I3 group. While the concept has undergone two successful pilot tests to date, it remains on the burner ready for implementation by a credit union or group of credit unions and a supporting CUSO.Documents
- Financial Literacy Month
- Young Adult Outreach Initiative: The Oregon Story – A REAL Solutions® Program Review
- Education on Household Wealth
- CU4Reality – Brochure
- Lotsa Motsa – Business Plan
- Mad City Money – Brochure
Websites
- National Youth Involvement Board – NYIB
- Biz Kid$
- National Endowment for Financial Education – NEFE
- Educational Resources from Federal Reserve System
- CU4Reality video – America’s Credit Union Museum
- CUNA’s website with Listing of Materials for Youth
Articles
- NuVision CU Offers Progression of Financial Education, Services
- Nine Tips for Totally Rad Youth Programs
- Half Of High School Seniors Don’t Know Student Loan Costs
- Berenstain Bears Open ‘Credit Union’ at Franklin Mint FCU
- Bankers for a Day
- Illinois Congressman Helps Alliant CU Make the Grade at Middle School
- Results Of CUNA’s Student Borrowing Survey Make an Impression
- Service Credit Union Helps Kids Understand Money
- ‘Tis the Season For Student Scholarships
- SECU Assists FBLA/DECA and Hosts “The Reality of Money” Workshop
- Affinity Federal Credit Union Partners with Somerset Home on Financial Education
A Reality Fair (or “Financial Reality Fair”) is an interactive financial literacy tool for high school students. The Reality Fair concept is a unique opportunity for students to experience some of the financial challenges they will face when they start life on their own. It’s a hands-on experience in which students identify their career choice and starting salaries then complete a budget sheet requiring them to live within their monthly salary while paying for basics such as housing, utilities, transportation, clothing, and food. Additional expenditures such as entertainment and travel are factored in as well.
Throughout the fair, there are many temptations for additional spending, and students must learn to balance their wants and needs to live on their own. After the students have visited the various booths covering components of independent living, students balance their budget, and then sit down with a financial counselor for review.
After NCUF held their first Reality Fair at GAC, David Mauldin, Vice Principal of H.D. Woodson High School said, “I think the fair engaged our students in the process of learning more effectively than any field trip I personally have ever seen. Soon many of them will be out in the real world where every day is a ‘financial reality fair.’ They are all more prepared to make wiser choices because of this event.”
For detailed information about Reality Fairs, see pages 32-34 of the Resource Guide for "Credit Unions: Focused on Financial Capability Across the Nation."
Resources:
- Mad City Money (CUNA)
- Reality Fair Information (Credit Union League of Connecticut)
- CU 4 Reality (America’s Credit Union Museum)
- Credit For Life Fair (HarberOne Credit Union) – Video | PowerPoint
- Experiential learning case study from the University of Phoenix and Toolwire
- Article – Credit Union Reality Fair enlightens teens
- Article – Teen financial boot camp set
Questions? Contact Lois Kitsch at lkitsch@ncuf.coop or (407) 616-2409.
