I’m so pleased with this piece that CBS News did on our work in the Naperville, Illnois schools. This brief piece very succinctly describes the importance and the benefits associated with teaching financial literacy skills at a young age.

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Right after my girls were born, we applied for a Social Security number for each of them, just as the law required. We had no choice, of course.

The Internal Revenue Service requires parents to obtain a Social Security number for a child before the age of one if they want to claim their child as a tax deduction. News reports of the increase in children’s identify theft cases made me wonder if my own girls were at risk. I have filled in their social security number on many forms. Was this a cause for concern? Not really, said Linda Foley, founder of the nonprofit Identity Theft Resource Center. However, it’s wise to keep your eyes open for red flags. Flags could be getting a credit card bill in your child’s name when you have not opened one for them or receiving collection agency calls for your child.

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As adults, credit and debit cards are a convenience we’ve all learned to rely on daily. But what are your children learning when you pull out your credit card? Watching parents use credit cards is the most visible money behavior our children see. But our children aren’t ready to use credit and debit cards – not just yet. They first need to learn to use coin and currency responsibly.

However, today’s kids are not getting the opportunity to do so. Continue reading

Let’s take a look at compound interest as a way to help your child understand why saving is so important. Remember that $4 spent each day on “I want” items? With that $4 of “I want” money, pose this question to your child: At age 12, you decide not to buy soda or snacks. Instead, you save the $4 a day and put it into a savings vehicle, such as a long-term CD that pays 5 percent annual interest, and leave it alone. At age 67 when you are ready to retire, your savings totals how much: (a) $1,159, (b) $25,355, (c) $80,352 or (d) $427,025?

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