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(Kansas City, Mo.) – Research shows that today’s young people are struggling with basic money matters. A 2006 national survey by the Jump$tart Coalition for Personal Financial Literacy found that on average 12th graders who participated in a personal finance survey answered only 52.4 percent of the questions correctly.
To instill a basic knowledge and understanding of money and personal finance matters to today’s youth, American Century Investments created Tips for Kids® and Tips for Life®— curricula designed for use in middle- and high-school classrooms.
"It is vitally important to educate students on basic financial principles," said Scott Oberkrom, Community Investments Consultant for American Century Investments. "Today’s youth are tomorrow’s social, political and economic leaders. By preparing them for life’s financial challenges we put them on the path to personal success and ensure they will be a benefit to the economy and our society as a whole."
In celebration of Achieve Financial Independence Week™, October 15-21, 2006, Oberkrom offers the following ten tips, based on Stowers Innovations, Inc.’s Yes, You Can... book series, and the Tips for Kids® and Tips for Life® curricula. These tips give teachers ways to reach out to middle- and high-school students and teach them about achieving financial independence.
Financial Fitness – When it comes to physical fitness, we know the importance of exercise to maintain good overall health. Good financial health entails regular exercise of the brain. Students should read up on the latest financial and economic news so they understand how it will impact them and their decision-making abilities.
It’s Never Too Early – The earlier you start saving for retirement, the better. Showcase a math lesson on compounding interest. Investing 10 years earlier can make a big difference.
Needs vs. Wants – For young people, financial naiveté can make it hard to decipher needs from wants. Lead students through an exercise on determining which purchases are really necessary and which can wait.
Establish Good Habits Now – The teens are key years to establishing habits students will take with them into adulthood. By implementing basic principles now, students can give themselves a better chance of reaching financial independence.
Budget Basics – Budgets are a fact of life. Students will need the skills to manage not only their personal budgets, but those of future employers as well. Solid budgeting skills will go a long way to achieving financial independence.
Worst Case Scenario – A look 10 years down the road at a life without financial independence paints a dire picture. Show students the very real life-limiting consequences of overspending. Poor credit history can ruin chances of purchasing a house, a car or other things they’re sure to want later in life.
Visualize Success – Financial independence can be achieved. Ask students to think about their financial life goals. What will happiness mean to them? Retiring early? The ability to travel the world? By thinking ahead, students can better reflect on planning to achieve their goals.
The Devil is in the Details – As credit card companies blanket college campuses, students – especially freshman – will have to sort through an array of seemingly attractive interest rates and credit limits. Teach high schoolers to read the fine print on these offers before they head off to college. They’ll likely find many of the lower interest rates are introductory and will rise in just a few short months.
Just Say No – According to the Consumer Federation of America, many students accumulate debt due to peer pressure and lack of knowledge about just how adversely their future credit could be affected. Teach students to ignore credit card offers and "just say no."
Freedom at Last? – Most middle- and high-school students look forward to college and a new era of no curfews and pizza for dinner every night. But financial independence means more than freedom from mom and dad, and students should learn the importance of appropriately managing their finances early. The parental safety net won’t be there forever.
About Tips for Kids® and Tips for Life®
Tips for Kids is a free financial education program that places students in real-life
situations where they can apply thinking and problem-solving skills. Appropriate for
grades five through eight, it's a fun and functional way to lead students in learning
how money impacts their world. Tips for Life offers comprehensive financial literacy
and career development to prepare high school students for life. This free online
program helps students learn how to become financially sound and an asset to employers.
The free curriculum may be downloaded direct, or you may order a curriculum on CD,
from www.tipsforkids.com
About American Century Investments
American Century is a leading investment manager with nearly fifty years of experience helping
investors achieve their financial goals. Based in Kansas City, Mo., the company manages
approximately $100 billion in assets through separate accounts, commingled trusts,
subadvisory accounts and mutual funds. James E. Stowers Jr. founded the company in 1958.
His son, James E. Stowers III, is chairman and William M. Lyons is president and chief
executive officer. For the past six years, American Century, which employs approximately
1,800 people, has been selected as one of FORTUNE Magazine’s 100 Best Companies to Work for.
For more information, visit www.americancentury.com
About Achieve Financial Independence Week™
Created by Stowers Innovations, Inc., Achieve Financial Independence Week™ helps raise
Americans' awareness of their own spending and saving habits, and provide people of all ages
with the strategies and information they need to achieve financial independence. For more
information, visit www.afiweek.com.
About Stowers Innovations, Inc.
Stowers Innovations, Inc. is a company that helps people find ways to improve their financial
position and find more meaning in their lives. Their mission is to provide information that
makes people aware of how they can live a meaningful life through an understanding of their
values, personal relationships, finances, good physical health and mental well being. For
more information, visit www.stowers-innovations.com
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