Helping Clients Help Their Children Become Financially Literate

Gallo, Eileen
June 2003
Journal of Financial Planning;Jun2003, Vol. 16 Issue 6, p26
Academic Journal
This article provides suggestions for financial advisors to help clients on financial parenting issues. For financial advisors working with clients who have children or grandchildren under age 12, go to the moneysavvygeneration Web site and buy Money Savvy Pigs for the children. The product has received the Parents' Choice Gold Award and was named one of the 15 best new products of 2002 by USA Today. The Money Savvy Pig is the invention of Susan Beacham, former executive of Bank of America, who was looking for a method to help children become financially literate. For clients with high-school-age children, the financial planner can play a role by helping them prepare for using the credit card. In the book Credit Card Use by Undergraduates: California and the Nation, the authors describe student credit card use as out of control, citing studies that 71 percent of undergraduates have three credit cards and that 62 percent of those with credit cards carry average credit card debt of $1,366. One reason credit card debt has become a problem for college students is the access to 18-year-old undergraduates provided by most colleges and universities. If parents want their children to avoid the problem, they need to start when their children are still in high school.


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