The Need For Financial Literacy

The Problem

According to the 2007 annual back-to-school survey from Capital One:

• 52% of teens are eager to learn more about money management, but only 14% have taken a class on the topic – 35% would like to learn from their parents.
• When asked about the topics they would most like to learn about, teens express interest in how financing works for large purchases such as a car or a home (74%), investing money (72%), identity theft and how to protect themselves (68%), saving money (62%), budgeting (58%), stocks (58%), checking accounts (55%) and credit cards (55%).
• 80% of parents see themselves as positive money role models for their kids, yet only a small percentage are taking advantage of day-to-day learning opportunities to arm their teens with practical money management skills.
• Only 48% of parents have discussed the importance of needs versus wants and more than one-third (36%) have not discussed back-to-school finances at all with their teens.

The Program

CAGI’s answer to the problem was the creation of the Count Your Cash (CYC) Money Management program for youth. Participants of the program were exposed to the fundamentals of money management including:

• how to develop and manage a personal budget;
• instruction in the structure of banking and checking services;
• tracking and evaluation of current spending habits;
• the importance of saving early and often, introduction to investment vehicles;
• development of S.M.A.R.T. personal and financial goals, and college and career preparation and options.

Get your Count Your Cash Program Application

The program is delivered in week-long sessions with a separate group of students during which the participants receive instruction through lecture, interactive role-play and games regarding money-management concepts and principles. Each session typically includes a trip to a location such as the Children’s Museum for a day of fun.

An additional enhancement to the learning process is in the form of earning “CAGI cash.” Throughout the week, students earn “play” money for answering questions and participation. At the end of each week, students shop for items in the CYC store, based on how much money they earned. Store items included: Indianapolis Colts paraphernalia, music CD’s, movie DVD’s, iTunes gift cards, basketballs, footballs, jewelry, movie tickets, cell phone cases, magazines and candy.

Certified Community Action staff and community financial professionals facilitate the program. The curriculum for the inaugural program was FDIC’s Money Smart. The Money Smart curriculum meets the education requirements provided by the 2009 Indiana Personal Financial Responsibility law regarding Indiana students in grades 6 through 12.

Participants of the CYC money management program are youth ages 12– 17 whose households are eligible for services (determined to have an annual income of 150% or less of the federal poverty guidelines). Via direct invitation through our client database, youth are encouraged to submit a program application. After a participant’s eligibility is established, a parent or guardian is required to attend a two-hour parent orientation to learn more about the program and the curriculum and the expectations for both participants and parents.

The Partners

Partners for the Count Your Cash program have included: First Financial Bank, Fall Creek Academy, PNC Bank and parents of the participants. Each partner played a significant role in the program’s success.

The Prizes

Count Your Cash Award and Recognition receptions are held to acknowledge the students’ achievements. In addition to the store items, each student who completes the program receives a certificate of completion, a $50 U.S. savings bond, a $25 saving account from one of CAGI’s partner banks, a bag of school supplies and a chance to win a Netbook computer. An additional certificate of excellence is presented to 10 students who achieve a score of 90% or more on the cumulative post-assessment. And finally, the parents also are eligible to participate in a drawing for gift cards from a local restaurant or retailer.