Spring 2015
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Teaching Young People About Money
Tips for Parents and Caregivers
ALSO INSIDE
Computer Security Tips
for Bank Customers Changes That Could Help
Boost Credit Scores A New Way to Save for
Children With Disabilities
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Teaching Young People About Money
Tips for Parents and Caregivers
ALSO INSIDE
Computer Security Tips
for Bank Customers Changes That Could Help
Boost Credit Scores A New Way to Save for
Children With Disabilities
2Spring 2015FDIC Consumer News
It’s never too early or too late to
introduce everyday financial concepts
to a young person. And, you don’t
have to be a financial expert. Here
are tips from FDIC Consumer
News to help parents, guardians and
caregivers show a child — from a
preschooler to a college kid — why
and how to become responsible with
money.
Engage in regular conversations
about money-related topics:
That includes discussing with your
child what you are doing, and why,
when you manage money at home,
around town or with the bank. For
example, consider talking about
similar products that have noticeably
different prices at a store, and how
you decide what is a good deal. And,
you can explain that having a savings
account at a bank has advantages
such as income from interest, peace
of mind of knowing the money will
be there when you need it, and FDIC
deposit insurance coverage for each
customer up to at least $250,000 if
the bank fails.
“If you are using plastic to pay for
purchases, consider explaining the
difference between a debit card,
which is like writing an electronic
check, and a credit card, which
requires the consumer to make a
payment in the future,” said Luke
W. Reynolds, Chief of the FDIC’s
Outreach and Program Development
Section. For more information
about credit and debit cards, see the
Summer 2012 FDIC Consumer News
(www.fdic.gov/consumers/consumer/
news/cnsum12/paymentcards.html).
Even with automatic transfers,
such as direct deposit of your pay,
consider using your bank statements
to show how money can move in or
out of your account.
And, special times of the year — like
during tax time or your workplace’s
“open season” for selecting health
insurance — present opportunities to
explain financial decisions.
For All Ages
Teaching Young People About Money: Tips for Parents and Caregivers
FDIC Publishes New Resources
for Teaching Young People About Money
Consider giving an allowance
as a teaching tool. It can be a
positive way to teach kids, even
those who are preschool age, about
money management. But before
you give the first allowance, help
your child decide how much he or
she will spend now and how much
to save for future goals. Then, help
your youngster see whether that
target is being reached by looking
at a bank statement online or a
paper copy. Also talk through the
tradeoffs involved with spending
decisions, such as how buying one
toy may mean forgoing going for the
opportunity to purchase another item
the child also wants.
“There are many approaches to
how best to structure an allowance,
particularly whether to tie it to work
such as household chores, so each
family will need to decide what is
best for them,” Reynolds added.
Think twice before giving a child
more money if he or she runs out
of funds before the next allowance
payment. That’s because part of the
purpose of an allowance is to teach
savings skills, self-control and the
benefits of waiting to enjoy a bigger
reward.
And, for younger kids, consider
paying an allowance in smaller
denominations to make it easier to
learn counting and saving skills.
Help your kids develop a healthy
skepticism of advertising and
unsolicited inquiries: In general,
teach children how to analyze
advertisements; they need to know
that “special offers” often are not
the great deal they appear to be.
Even young consumers are targets
for identity thieves and among
the victims of scams and rip-offs.
Information for parents on protecting
children’s personal information
from identity theft is available at
www.onguardonline.gov/topics/
protect-kids-online.
The articles starting on the next page
offer specific tips for different grade
ranges. (Some of the tips may be
helpful for slightly older or younger
kids.) And for a list of resources for
parents and caregivers, see Page 5. Q
In April 2015, the FDIC launched
Money Smart for Young People,
a series of financial education
curriculums for four age groups
— Grades Pre-K-2, 3-5, 6-8, and
9-12 — including lesson plans for
teachers and resources for parents
and caregivers. The free resources
are designed to improve financial
education and decision-making skills
among young people.
The FDIC worked in partnership
with the Consumer Financial
Protection Bureau (CFPB) to develop
these new educational tools. The
parent/caregiver guides are available
in English and Spanish through www.
consumerfinance.gov/parents, a Web
site developed by the FDIC and the
CFPB. Educators can download the
full curriculum, including lesson
plans, at www.fdic.gov/consumers/
education/torc/curriculumtools.html.
"It is important that financial
education begin at a young age so that
children can build long-term, positive
financial habits," FDIC Chairman
Martin J. Gruenberg said. He added
that the new tools for parents and
teachers will help kids “build financial
capability and take advantage of the
opportunities in the banking system to
reach their financial goals.”
Also available through the FDIC link
above is more information on the FDIC's
Money Smart program as a whole, which
includes curriculums for people of all
ages. Q
It’s never too early or too late to
introduce everyday financial concepts
to a young person. And, you don’t
have to be a financial expert. Here
are tips from FDIC Consumer
News to help parents, guardians and
caregivers show a child — from a
preschooler to a college kid — why
and how to become responsible with
money.
Engage in regular conversations
about money-related topics:
That includes discussing with your
child what you are doing, and why,
when you manage money at home,
around town or with the bank. For
example, consider talking about
similar products that have noticeably
different prices at a store, and how
you decide what is a good deal. And,
you can explain that having a savings
account at a bank has advantages
such as income from interest, peace
of mind of knowing the money will
be there when you need it, and FDIC
deposit insurance coverage for each
customer up to at least $250,000 if
the bank fails.
“If you are using plastic to pay for
purchases, consider explaining the
difference between a debit card,
which is like writing an electronic
check, and a credit card, which
requires the consumer to make a
payment in the future,” said Luke
W. Reynolds, Chief of the FDIC’s
Outreach and Program Development
Section. For more information
about credit and debit cards, see the
Summer 2012 FDIC Consumer News
(www.fdic.gov/consumers/consumer/
news/cnsum12/paymentcards.html).
Even with automatic transfers,
such as direct deposit of your pay,
consider using your bank statements
to show how money can move in or
out of your account.
And, special times of the year — like
during tax time or your workplace’s
“open season” for selecting health
insurance — present opportunities to
explain financial decisions.
For All Ages
Teaching Young People About Money: Tips for Parents and Caregivers
FDIC Publishes New Resources
for Teaching Young People About Money
Consider giving an allowance
as a teaching tool. It can be a
positive way to teach kids, even
those who are preschool age, about
money management. But before
you give the first allowance, help
your child decide how much he or
she will spend now and how much
to save for future goals. Then, help
your youngster see whether that
target is being reached by looking
at a bank statement online or a
paper copy. Also talk through the
tradeoffs involved with spending
decisions, such as how buying one
toy may mean forgoing going for the
opportunity to purchase another item
the child also wants.
“There are many approaches to
how best to structure an allowance,
particularly whether to tie it to work
such as household chores, so each
family will need to decide what is
best for them,” Reynolds added.
Think twice before giving a child
more money if he or she runs out
of funds before the next allowance
payment. That’s because part of the
purpose of an allowance is to teach
savings skills, self-control and the
benefits of waiting to enjoy a bigger
reward.
And, for younger kids, consider
paying an allowance in smaller
denominations to make it easier to
learn counting and saving skills.
Help your kids develop a healthy
skepticism of advertising and
unsolicited inquiries: In general,
teach children how to analyze
advertisements; they need to know
that “special offers” often are not
the great deal they appear to be.
Even young consumers are targets
for identity thieves and among
the victims of scams and rip-offs.
Information for parents on protecting
children’s personal information
from identity theft is available at
www.onguardonline.gov/topics/
protect-kids-online.
The articles starting on the next page
offer specific tips for different grade
ranges. (Some of the tips may be
helpful for slightly older or younger
kids.) And for a list of resources for
parents and caregivers, see Page 5. Q
In April 2015, the FDIC launched
Money Smart for Young People,
a series of financial education
curriculums for four age groups
— Grades Pre-K-2, 3-5, 6-8, and
9-12 — including lesson plans for
teachers and resources for parents
and caregivers. The free resources
are designed to improve financial
education and decision-making skills
among young people.
The FDIC worked in partnership
with the Consumer Financial
Protection Bureau (CFPB) to develop
these new educational tools. The
parent/caregiver guides are available
in English and Spanish through www.
consumerfinance.gov/parents, a Web
site developed by the FDIC and the
CFPB. Educators can download the
full curriculum, including lesson
plans, at www.fdic.gov/consumers/
education/torc/curriculumtools.html.
"It is important that financial
education begin at a young age so that
children can build long-term, positive
financial habits," FDIC Chairman
Martin J. Gruenberg said. He added
that the new tools for parents and
teachers will help kids “build financial
capability and take advantage of the
opportunities in the banking system to
reach their financial goals.”
Also available through the FDIC link
above is more information on the FDIC's
Money Smart program as a whole, which
includes curriculums for people of all
ages. Q