Grant Will Help Teach Kids About Money

Kristi King, WTOP Radio

WASHINGTON - Do your kids pet sit for the neighbors when they're on vacation? Do they set aside $5 from every week's allowance for savings? Are they playing games on the Internet to learn how the stock market works?

The National Council on Economic Education has received a $1.48 million grant from the U.S. Department of Education to lead a nationwide initiative to improve the financial literacy of children.

The money will be used to prepare teachers to convey the basic concepts of money management, says Joseph Perry, executive vice president and chief operating officer of the National Council on Economic Education.

But teaching children about money management needs to start at a very young age with parenting teaching the basic concept of choices and consequences.

"There are always choices and consequences," Perry says. "You can show them if they buy a small item now, they won't be able to save up for that larger item they want."

Perry says parents shouldn't underestimate how much their kids understand about money.

"Kids are very, very smart, and, today, especially, are very aware of money and goods and services. There's just tremendous amounts of purchasing power in the pre-teen and early teen years. Those kids make a lot of spending decisions."

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