Why are we failing financial literacy?

Financial literacy has come up several times recently among my friends, at work, in grad school, on the news and even at home last night.

Luke is setting up a budget for our family and it even includes the opportunity for Dylan (my 9 year-old son) to earn $25 a week. Along with that we are charging Dylan for rent $5, utilities $5 and food $5. Does this sound drastic? It's actually an innovative approach to teach him about budgeting and self motivation.

And that's one of the reasons we are failing financial literacy. My fellow grad students were shocked and awed when I said the "preachy" credit union approach to teaching financial education is not working. The fact, backed by quantitative data is that bank and credit union educators lecturing students is ineffective.

With both parents and teachers ignoring financial education, presuming the other is teaching it, I don't mean to criticize the only people actively addressing the problem.

I do want to help credit union educators do a better job of teaching financial education.

Education is not just about teaching. It occurs when the result is learning.

Dr. Lewis Mandell is the leading researcher of financial literacy in the United States. While he is currently assessing the outcomes of his 2008 research, the 2006 research was mind blowing. I've attached a link to an online PPT. check out slide 4.

To give credit unions the praise they deserve, the PBS show Biz Kid$ funded by America's Credit Unions does create the needed self efficacy to produce results. It features kids teaching each other with real life examples of kids who own their own businesses.

Kudos to the National Credit Union Foundation who spearheaded the funding of this show. They realized you can't bore kids into learning-so lets inspire them.