The Tree of Knowledge.
Did you know that the Federal Deposit Insurance Corporation (FDIC) has a program to help teens (ages 12-20) learn the basics of handling their money and finances? Neither did I.
The program is called Money Smart for Young Adults.
The goal is to provide the knowledge that teens and young adults need about personal finance, but rarely get. The lament of many parents is that this stuff just isn’t taught in schools. This is an attempt to fill in that gap.
It’s distributed via CD-ROM, VHS and DVD and is completely free.
The program is built from 8 modules, each led by an instructor and contains:
“… fully scripted instructor guide, participant guide, and overhead slides … an optional computer-based scenario that allows students to complete realistic exercises based on each module.”
It’s clearly geared towards educational uses, but information is information, right?
Here are the eight modules:
I. The Bank On It module.
This module teaches the basics of banking: Using a bank account, different types of bank accounts, and additional services that a bank may provide.
II. The Check It Out module.
It’s about checking accounts – clever names, huh? 
This module covers how to open and use a checking account (you mean I can’t keep writing checks as long as I have them in my little book?) as well as common fees.
III. Setting Financial Goals.
This module is about budgets, and personal spending plans. It discusses wants vs. needs and how to decrease spending and increase income.
IV. Pay Yourself First.
Introduces the basic foundation of saving and discusses various saving options.
V. Borrowing Basics.
This module covers various forms of borrowing and discusses how to use credit appropriately. i.e.: Don’t borrow $300,000 for a new house when you can only afford $100,000.
VI. Charge It Right
Covers the basics of credit cards – don’t pay for your groceries with a credit card if you can’t pay off the balance.
VII. Paying for College and Cars.
This module covers the basics on installment loans for things like, you guessed it, cars and student loans.
VIII. A Roof Over Your Head.
Arms young adults with information on renting their 1st apartment and getting their 1st mortgage. I think if everyone was given this information by the time they were 20 there would have been a lot less of a sub-prime mess.
Computer-Based Scenarios.
There is an optional computer-based interactive scenario for each module, which takes the student through possibly decisions based on the module. While there are no right or wrong answers, students are able to see the outcome of each decision so it adds more value than a simple quiz.
If interested, request a copy here.
Photo by Knilram
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