1. Modeling Good Money Management for Youth
Money skills you need for life
Society for Financial Education and Professional Development
October 2, 2017
© 2017 Wells Fargo Bank, N.A.  All rights reserved.

2. Agenda Financial Capability Money Management Tips for Parents
Modeling for Children
Hands on Banking: Tool for Success
HandsonBanking.org
Educator resources

3. Financial Capability Building the Next Generation of Financially Capable Youth
ELEMENTARY Guided Discovery Develop executive function
MIDDLE SCHOOL Modeling and Instruction Build money habits and values
HIGH SCHOOL Practice Opportunities Develop money skills and financial decision making

4. Financial Capability Concepts
Knowledge
Knowledge of financial concepts (inflation, compound interest etc.)
Awareness of financial products and services
Practical Know-how (how to make payments, how to open a bank account etc.
Skills
Numeracy Skills
Literacy Skills
Attitudes
Reasons for or for not saving, borrowing, investing, etc.
Attitudes Towards the future
Confidence in own plans for old age
Proclivity towards budgeting, Saving, lending etc.
Behaviors
Money management (managing day-to-day finances).
Long-term planning (preparing for emergencies and retirement)
Financial decision- making (ability to choose appropriate financial products)
Seeking financial advice.
Executive function: regulation, control, management of our thinking and actions (cognitive processes)
Combination of attitude, knowledge, skills, and self-efficacy needed to make and exercise money management decisions that best fit the circumstances of one's life, within an enabling environment that includes, but is not limited to, access to appropriate financial services
Center for Financial Inclusion (2013); OCC (2012)
Incorporates financial literacy with the ability to understand money management so people make informed decisions
Degree of choice and complex financial marketplace requires consumers to be equipped with the knowledge and skills to evaluate the options and identify those that best suit their needs and circumstances
Especially important for underbanked consumers, elderly, persons with language barriers – all of which support our CSR 2020 goals
1Financial Capability Surveys Around the World — August 2013

5. Money Management Tips for Parents
Provide opportunities for research, analysis, and to explore real-world examples
Help him/her become an informed consumer
Let them work (maximum of 20 hours/week)
Introduce more advanced banking services and skills (direct deposit, ATM)
Review how credit is established and the importance of establishing good credit (employment, future goals, etc.)
Teens
Offer/provide allowances as opportunities for practice
Introduce 3 jars (containers) for spending, saving, and sharing/donating
Discuss what is meant by responsible spending
Encourage saving
Set personal and family financial goals
Review choices and discuss how decisions are made
School Age
Keep it simple and direct
Teach the value of coins and everyday items
Discuss saving for the future
Distinguish between a want and a need
Discuss why and how financial choices are made
Help them to understand deferring or delaying spending
Preschoolers
Talk to your children about money and its uses
Leading by example is a powerful way to encourage positive financial behaviors
Hands-on teaching and real world experiences help set a sound financial foundation.
Open bank accounts at an early age
Consider an allowance as an opportunity for practice
Engage children in financial discussions about the family budget, current challenges faced, and any longer-term goals or priorities
Content pulled directly and verbatim from HOB.org
Money skills don’t always come naturally
Good parenting and some hands-on teaching can give your kids a sound financial foundation.
Teens
Quick answer: Teens are used to instant gratification and a few can have a hard time understanding “no.” Include them in financial discussions about the family budget, challenges the family may be facing and any longer-term goals or priorities. Teens can understand financial knowledge and apply this information to make good financial decisions. Consider providing opportunities for your teen to research and analyze financial options. Talking to your teenager about personal and family goals can help him/her become an informed consumer.
Let them work - At this stage your teen may be itching to get a job to earn extra cash. You’ll want to emphasize the wisdom in balancing work during the school year with school performance. While employment can provide valuable experiences, studies have shown that employment may interfere with academic performance for teens who work 20 hours or more per week.1
If your teen is earning a paycheck, he or she may find it easier to access his or her savings account with an ATM card, a move you may or may not decide to support.
Credit - importance of establishing good credit and credit score. You can help your teenager understand that one of the keys to getting the right apartment or qualifying for the loan he or she will want someday at a good rate may be a strong credit score.
Be sure to impress upon your teen that responsible use of credit cards is a common way to help establish a good credit history and that paying off the balance each month in a timely manner is an important safeguard against becoming a credit risk. Problem behaviors to watch for in your teenager include:
Let them practice
Planning a family vacation, to help instill the value of money, diligence, and hard work. When thinking of the next family vacation, ask your children to plan it out with a specific budget. International destinations provide an added element of learning about foreign exchange. Creating a vacation schedule, pricing out airline tickets, hotel, and rental cars, and then explaining the rationale provides an exercise in understanding how much things really cost, as well as project management, organization, and leadership skills.

6. Allowance: To Give or Not to Give?
Teaching tool and opportunity for practice
Guidelines for spending, saving, sharing based on values and priorities
Ability to spend as they wish
Learn by doing – safe space with low stakes
Allowance Considerations
Fixed and Regular
Tied to other responsibilities (chores, tasks beyond everyday responsibilities)
Bonuses
Influenced by age and responsibilities
Teaching tool and practice opportunity
Debate about tying to chores or not
Many experts think you should give allowance regularly, so the expense of managing money isn’t lost if chores are not completed. While this is a personal decision, some parents consider offering additional money for tasks beyond everyday responsibilities.
Additional money for tasks beyond everyday responsibilities
Children need guidelines for spending, saving, sharing based on values and priorities
You may want to allow children to spend their allowance as they wish. We all learn by doing and sometimes the best lessons can be learned through mistakes. Often the stakes at this stage are low, so it can be a safe space in which to learn.
Your child’s age is a major factor in how much their allowance could be. Some experts suggest giving an allowance half of the child’s age per week or per month while others suggest giving the child’s age per week or month. For example, if a child is 10 years old, their allowance could range from $5-10 per week (or month).

7. What is Hands on Banking®

8. Hands On Banking
A comprehensive suite of financial education articles, courses and tools designed for self-paced or group learning
Award winning, free financial education
Available in English and Spanish
No commercial content, no product ties
Widely used in schools and by non-profits for nearly 15 years
Extensive age-specific (children through senior adults) and custom audience (entrepreneurs, military) curriculum
Flexible Web-based and traditional instruction delivery channels 8

9. Audiences we serve Individuals Educators Non-profits
Government entities
Workplaces
WF Team members

10. Handsonbanking.org Elfuturoentusmanos.org
Articles section provides information on popular topics
Courses section provides full curriculum by age group or segment
Featured content section highlights new resources
Community education section shares resources for workplaces and non-profits to get started

11. Educator Page with Common Core aligned content

14. Downloadable Instructor Guides

15. Hands on Banking toolkit

16. Courses provide practical guidance…

17. …and tools

18. Helping parents compare college savings programs

19. And young adults make a strong start in their financial lives

20. Thank you For additional information visit: https://handsonbanking.org
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