s/o Financial Literacy -- curriculum/book ideas

[StephanieZ]

I thought I'd start a thread for folks to suggest curriculum, books, or other resources for to help our children become financially literate.

 

I ask that folks include an age/grade range along with the resource and a bit of a description/review.

 

Thanks!!!!

[SKL]

I used to be a volunteer for Junior Achievement.  They had some good programs for kids of all ages.  I am going to do some research to see what they have for families to use at home.

 

https://www.juniorachievement.org/web/ja-usa/home

Edited April 21, 2016 by SKL

[PeachyDoodle]

We used to play the board game Cashflow a lot. It was great for learning about risk taking and investment strategy. (If you are a strict no-debt person, it might not be for you.) Hmm... need to see if my mom and dad still have it somewhere. It would be great for dd. I would guess 10 and up could play with some assistance, maybe even slightly younger. I think there is a junior version as well.

 

Games like Monopoly are great for this also.

 

I know that Dave Ramsay and Robert Kiyosaki both have financial literacy programs for kids/teens. I have looked at both of them, but I don't have experience with either directly. We are waiting until dd is a bit older to begin something formal.

 

I also really want to work this in somewhere: http://www.stockmarketgame.org/. Looks like a lot of fun!

 

 

[Carrie12345]

I had Dave Ramsey's high school program for my oldest. I found it pretty solid.  He has a middle school program now, but I haven't seen it in person.  I hated his little kid program.

 

I'm using http://www.hsfpp.org/ as my framework for our 8th-12th grade co-op class next year, but I'm still vetting Teachers Pay Teachers lesson plans to add to it.  Much of the hsfpp material assumes teenagers are working, which isn't going to be the case for my whole class.  Even though we'll cover teenage budgeting decisions, I want to spend more time on the choices they'll face in the future.

[PeachyDoodle]

I had Dave Ramsey's high school program for my oldest. I found it pretty solid.  He has a middle school program now, but I haven't seen it in person.  I hated his little kid program.

 

I'm using http://www.hsfpp.org/ as my framework for our 8th-12th grade co-op class next year, but I'm still vetting Teachers Pay Teachers lesson plans to add to it.  Much of the hsfpp material assumes teenagers are working, which isn't going to be the case for my whole class.  Even though we'll cover teenage budgeting decisions, I want to spend more time on the choices they'll face in the future.

 

Would love to see what you come up with for your co-op when you've finished!

[HomeAgain]

Teens - MUS Stewardship.  A lot of DR stuff is repetitive in his age-level books, but mine appreciated the MUS approach to finances for a different and more thorough mathematical approach.  We're secular but it didn't bother us a bit.

 

For young children, board games like Monopoly or Allowance help open up discussion in personal choice, needs vs. wants, and long term goals.

Edited April 21, 2016 by HomeAgain

[ErinE]

I have a finance degree and one of the classes I took was in financial planning. It was interesting to get the personal finance review, because the rest of my coursework was in corporate and investment financial analysis. Though this was not the textbook used, it was very similar to this one (based on a scan of table of contents for the latest edition):

 

http://www.amazon.com/Personal-Financial-Planning-8th-Eigth/dp/B001LZU1SE/ref=sr_1_1?s=books&ie=UTF8&qid=1461252341&sr=1-1&keywords=gitman+personal+financial+planning+8th+edition

 

I found the textbook straightforward, easy to read, and informative. For me, the issue was putting all the information into the context of real life. The only times my parents discussed finances with me was to caution me whenever cashflow was short (which was often), but not helpful in building good financial habits. I think the best option would be to use this textbook as a guide to discuss the personal finance decisions you make as a family.

 

Overall, the most important things for young people to know:

 

* Time Value of Money - both from a savings and debt standpoint. (classic example: A twenty year old saves $2,000 annually for 10 years and stops, versus someone who waits 10-years then saves the same amount annually for 35 years. The 20 year old has more money when both reach 65). Understanding future value, present value and net present value. Looking at a thirty year mortgage, the substantial amount of interest paid over the term as opposed to accelerated payments. Effect of interest rates on savings and debt balances.  How interest rates can increase based on frequency of payment (weekly, monthly, annually). 

* Budgeting and Cash Flow Analysis - How to create a budget. Potential incomes and expenses. Differences between needs and wants (housing and groceries versus vacations and restaurant dining). Ways to build savings.

* Investment Planning - Understanding the differences between various forms of financial accounts, including savings, checking, CDs, retirement, and college savings. Knowledge of bonds, stocks, mutual funds, and exchange traded funds. Researching fees that financial companies charge and how it effects investment returns. Knowing the basics of the Efficient Market Hypothesis, which I personally think holds true at the less wealthy, individual investor level.

* Life Planning - Purpose of insurance. Various types of insurance (auto, health, life). For life insurance, understanding term vs. whole and the various hybrids, including benefits and drawbacks of all. I don't think estate planning is as critical for a young person to know, simply because so much of it is highly dependent on tax law, but awareness is important. I would include a discussion on wills and living wills.

 

Very important and not usually included in standard financial planning discussions:

* Microsoft Excel - Create repayment schedules. Analyze basic financial information using standard ratios. Setting up simple cash flow model, especially if the teen might be interested in business or rental properties. Knowledge of basic financial functions, like RATE, NPV (or XNPV), FV, PV. If the teen is interested in making investments, IRR and XIRR are good functions to know as well.

[KarenNC]

Simply Charlotte Mason's "Your Business Math" lets the kid run a business (choice of bookstore, pet store, or sporting goods store), including taxes, writing checks, ordering stock, etc.  We did the bookstore in 5th grade. https://simplycharlottemason.com/store/your-business-math/ 

 

H&R Block's Budget Challenge is good for high school (free and includes the possibility of earning real scholarships). It's an immersive program that puts the student in the place of a recent college graduate, having to pay student loans, pay bills, choose cell phone plan, etc for 9 weeks. http://hrblock.budgetchallenge.com/

[Greta]

I bought a Dave Ramsey bundle for myself and my high school student, and I really liked it.  I just checked their website and they don't seem to sell that exact same bundle anymore, but it included the book Complete Guide to Money.  

 

I'm also slowly making my way through Personal Finance for Dummies by Eric Tyson.  It's more comprehensive and detailed than the Dave Ramsey books that I've read.

[wathe]

  The Wealthy Barber.   Financial planning course in the form of a novel.  It's Canadian, but the concepts would apply in the US as well.

 

 

 

 

[Bluegoat]

  The Wealthy Barber.   Financial planning course in the form of a novel.  It's Canadian, but the concepts would apply in the US as well.

 

I was going to suggest this - I read it in middle school and really enjoyed it.  There is a newer, updated version as well as the old one.