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.

Hey Mom I Skipped a Grade!

Dylan's back in school and it’s a brave new year. They decided to put him and a handful of other 4th graders in an experimental 5th grade classroom. The teacher is very engaging. They choose Dylan not because he achieved the highest test marks, but instead because he shows the greatest aptitude. We are hoping the more mature student will increase Dylan’s self-efficacy (motivation).

Open house was last night. The students put mystery notes on their desks with clues about which desk belonged to each of them.

Dylan’s note was the only one that told the parents, “I love you.”

Guess some of that 5th grade maturity is rubbing off on him already.

Honestly it was the “my favorite toy is Bokugan,” that was clue that tipped us off to Dylan’s Desk. It was an unexpectedly sweet night. Dylan’s dad Brian is backpacking in British Colombia with my brother, Jon, but Brian’s girlfriend Emily came to the open house.

Emily and I were blessed with Dylan’s love for us…and Bokugan