The Importance of Brushing and Bonds

Laura Levine's four-year-old is learning to brush her teeth everyday and how to protect herself from predatory lenders.

Preschool might seem a bit early to start thinking about mortgages. But, even though she doesn't really understand the complexities of gingivitis or subprime, the habits her mother is instilling will lead to a lifetime of oral and financial health.

"As the mom of a preschooler, we learn about brushing teeth. We don't expect them to understand why but they understand that it's a good habit," explains Levine, executive director of the Jump$tart Coalition for Personal Financial Literacy. "With something like saving, if we teach kids that it's also a good habit, it's a mindset we can develop even if they don't know how to diversify a portfolio."

When the markets crashed last October, it became apparent that across the United States families had been taken advantage of by predatory lenders. As funds became harder to borrow, our collective debts began to feel more like a toothache.

Today, we're starting to recover. Fixing the decay hasn't been easy and that's why we need to take a closer look at prevention. The best way ease the blow of a future crisis is to focus on improving our financial literacy.

As the head of Just$tart and an appointee to the President's Advisory Council on Financial Literacy, Levine has been touting the benefits of this knowledge. But, in a 2008 survey conducted by the coalition, U.S. high school seniors correctly answered only 48.3 per cent of questions. In Canada, financial literacy courses are usually high school electives or addressed briefly in other courses.

That's starting to change.

In June the first global financial literacy summit brought together leaders including White House senior advisors and Federal Reserve Chairman Ben Bernanke to discuss bringing the "language of money" into American homes. Plus, Canadian Finance Minister Jim Flaherty has emphasized that consumer protection is one side of a "two-sided" coin.

"The other part is financial literacy, making sure people understand what is disclosed to them," he said.

For Levine, that means starting young. Her toddler might not be able to speak the "language of money" but she does know that two-sided coin can be put in her piggybank and saved for something special.

Once Levine's daughter is ready to move beyond these basics, Jeannine Glista has a show for her to watch.

Biz Kid$ is based in Seattle and uses sketch comedy to teach young people about more complex topics like credit, entrepreneurship and even the green economy.

"We're always trying to underscore saving, paying yourself first and having a plan," says Glista, the show's executive producer. "The show really captures kids' attention with these kooky, random elements."

Making finance entertaining is no easy feat. But, through sketches that play on pop culture references like Star Trek or the Sopranos as well as profiles of young entrepreneurs, Biz Kid$ is able to teach and captivate their young audience.

"The biggest thing we're trying to get across is not to have money for the sake of having money. It's not about greed or glamour," says Glista. "It's about taking charge of your financial future."

That's exactly what Levine wants her daughter to do.

"With financial literacy, you don't have to be a do-it-yourself money manager. But a literate consumer knows when and where to get help," says Levine.

We all want to protect our kids from everything from cavities to colds. In the last year, we've add global financial crisis to that long list parental worries. Luckily, the best way to protect them is by teaching them the basics and remembering it's never too early to start.

"That's the silver lining of the recession," says Levine. "If it makes people more aware and more pro-active, it's a good thing."

Follow Craig and Marc Kielburger on Twitter: www.twitter.com/craigkielburger

Comments

[TinfoilLatte]

Yes! I agree with this.

In fact, I wonder if a financial class should be mandatory at each grade level. Show the practical elements of math.

Time to indoctrinate a country to have a population of financial gurus, particularly when it comes to saving money, budgeting, and even alternative banking systems.