Just listen through your computer with speakers or headphones! - PowerPoint PPT Presentation

Trouble dialing in?  Just listen through your computer with speakers or  headphones!  @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

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Engaging Parents in Their Children’s Financial Development May 12, 2016 @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Image by NUTS4BOLTS DESIGN @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Image by NUTS4BOLTS DESIGN @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Image by NUTS4BOLTS DESIGN @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

CFED Consumer Financial Protection Bureau @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

The Role of Parents in Financial Capability Development Pamela Chan, CFED @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

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• Focused on the lessons parents in low-income households are imparting to their children (what and how) • Conducted interviews with 20 parents with elementary-age children in low-income households and 20 adults that grew up experiencing material hardship in elementary school • Full report available at http://cfed.org/knowledge_ce nter/resource_directory / @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

@CFED /CFEDNews cfed.org/blog/inclusiveeconomy

@CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Spending from Interviews    @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Spending from Interviews        @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Saving from Interviews     @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Saving from Interviews          @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Earning from Interviews   @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Lessons on Earning from Interviews       @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

   @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

@CFED /CFEDNews cfed.org/blog/inclusiveeconomy

Money as you grow Activities and conversation starters for parents and caregivers | May 2016

Today’s discussion  Parents and caregivers are a key influence  How children develop, financially  Introducing: Money as You Grow at the CFPB  Discussion 22

Parents and caregivers 23

Parents and caregivers are a key influence  Adults say their own parents were the source of important money habits, skills, and attitudes Source: Financial well-being: The goal of financial education. CFPB (2015) consumerfinance.gov/reports/financial-well-being/  Research reinforces that parents and caregivers are the key influence on children’s financial development Source: Foundations of Financial Well-Being: Insights into the Role of Executive Function, Financial Socialization, and Experience-Based Learning in Childhood and Youth. http://onlinelibrary.wiley.com/enhanced/doi/10.1111/joca.12068 24

How children develop, financially 25

The development of financial well-being  Behaviors, skills, and personal traits that support it:  Effective routine money management  Financial planning and goal-setting  Financial research and knowledge-seeking  Following through on financial decisions  Skills, personal traits, and opportunities that support these behaviors require more than financial knowledge 26

Three components of youth financial capability    Executive Financial habits Financial skills & function and norms decision making Self-control, Healthy money Factual knowledge, What it is working memory, habits, norms, research and analysis problem solving rules of thumb skills Future orientation, Decision shortcuts Deliberate financial perseverance, for navigating day- decision-making, like planning and goal to-day financial life financial planning, What it setting, general and effective research, and supports cognitive ability routine money intentional decisions management 27

Primary developmental stages Executive Financial habits Financial skills & function and norms decision making Early childhood (ages 3-5) Middle childhood (ages 6-12) Adolescence and young adulthood (ages 13-21) 28

Development is a continuous process Executive Financial habits Financial skills & function and norms decision making Early values and Basic Early childhood norms numeracy (ages 3-5) Basic money Middle childhood management (ages 6-12) Development Development Adolescence and continues continues young adulthood (ages 13-21) 29

Research-based milestones for early childhood Financial habits and Financial skills & Executive function norms decision making • Does the child begin to • Has the child developed • Does the child have early demonstrate self- basic values and attitudes numeracy skills like regulation, persistence, around saving and counting and sorting? and focus? consuming? • Does the child grasp basic • Can the child demonstrate financial concepts like these qualities when using money, trading, and and managing limited saving? resources like time, money, treats, or belongings? 30

Research-based milestones for middle childhood Financial habits and Financial skills & Executive function norms decision making • Does the child show the • Does the child have a Does the child • ability to plan ahead and positive attitude toward understand core wait for what he or she saving, frugality, financial processes and wants? planning, and self- concepts? control? • Does the child show Has the child • future orientation? • Does the child have successfully managed positive financial habits money or other like planning and saving? resources to reach his or her own goals? • Can the child make spending and saving decisions aligned with his or her goals and values? • Is the child self-confident about completing financial tasks? 31

Research-based milestones for teen years and young adulthood Financial habits and Financial skills & Executive function norms decision making Does the teen Does the teen have Does the teen grasp • • • demonstrate critical positive financial habits advanced financial thinking skills? and instincts? processes and concepts? • Does the teen • Does the teen • Can the teen demonstrate future demonstrate successfully manage orientation? appropriate financial money or other self-efficacy? resources to reach his or • Has the teen her own goals? demonstrated the ability • Can the teen make to plan ahead and wait spending and saving • Can the teen identify for what he or she decisions aligned with trusted sources of wants? his or her goals and information and process values? that information? 32

Introducing Money as You Grow at the CFPB 33

Background: President’s Advisory Council  One outcome of the President’s Advisory Council on Financial Capability was the development of moneyasyougrow.org Spearheaded by Beth Kobliner, chair of the working group  Site grew in popularity and reached one million hits in 2015  Source: Visitor counter at http://www.bethkobliner.com/kids/money-as-you-grow-has-a-new-home/ 34

New home at the CFPB  On March 17, 2016, CFPB launched its Money as You Grow section for parents and caregivers www.consumerfinance.gov/money-as-you-grow 35

Structured around the developmental phases 36

Featured activities You’re invited to share the activities on your own social media 37

Activities and conversation starters 38

Why it works 39

Two-page brochures 40

Blog posts 41

Keep in touch! 42

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 Parents are key influencers of their children’s  Learn more about what financial capability development. parents are currently doing with their kids by • They are critically important in shaping reading CFED’ report, attitudes, values, and norms about money Imparting Early Lessons during the elementary school years. about Personal Finance • They are doing this whether or not they ( http://cfed.org/knowledge_c enter/resource_directory/ ) know it as lessons are being imparted explicitly and implicitly.  Check out resources and activities for  Parents can start engaging with their kids parents at Money as about money, even if they don’t feel like You Grow experts themselves. (http://www.consumerfinance .gov/money-as-you-grow/)  Repeatedly talking through every day financial decisions are a powerful way to get kids started on building financial capability. @CFED /CFEDNews cfed.org/blog/inclusiveeconomy

CFED Consumer Financial Protection Bureau @CFED /CFEDNews cfed.org/blog/inclusiveeconomy