having the talk: kids, parents and money

Having the “Talk”:Kids, Parents &

MoneyOctober 20, 2013

Hebrew Institute of RiverdaleUri L’Tzedek

Tamar Snyder, Certified Educator in Personal Finance (CEPF)

Free money?!

stats

Teens lack basic financial literacy skills:• Nearly two-thirds of today’s high school students are

financially illiterate

• The average high school senior can only answer about half of the questions on a basic financial knowledge test

• 77% of teens surveyed believe they are financially savvy, yet only 35% know how to balance a checkbook. 31% understand how credit card interest and fees work. Only 22% of teens surveyed understand how income taxes work (Charles Schwab's 2011 Teens & Money Survey)

• Financial literacy is rarely taught at school

2012 JA/Allstate Foundation “Teens and Personal Finance” survey

T.RowePrice Fourth Annual Parents, Kids & Money Survey (2012)

T.RowePrice Fourth Annual Parents, Kids & Money Survey (2012)

Key Findings:• Teens spend most of their money on “social spending” • Savings has become a lost art • The concept of “interest” is not fully understood• Most teens do not have a written budget, but know they

will need to in the future• Teens do not like asking their parents for money• While many teens have credit cards, few have seen a credit

card statement. They were shocked to see how long it would take to pay off credit card balance if they only paid the minimum balance

• They enjoyed learning about stocks and investing

5 strategies that work

tips for raising money savvy kids of all ages

1. Discuss $ values

Which money messages are YOU instilling in your children?

My Money Values:A Card Sort

Tzedaka as a tool for discussing wealth

and privilege

2. Distinguish Needs vs. Wants

3. Engage kids in $ decision making

4. Budget, Budget, Budget

Explain how much things cost

Budgeting Basics

Step 1: Calculate total income ($50)

Step 2: Set aside 10% for tzedaka ($5)

Set aside 10% for savings ($5)Set aside 10% for investing ($5)

You are left with 70% ($35) for spending

5. Encourage investment

The joys of compound interest

• Roth IRAs• Entrepreneurship

Bonus: Teach kids to be Credit Savvy

Credit vs. Debit

Questions?

www.tamarsnyder.comtamar@tamarsnyder.com

Allowances: Good idea or bad idea?