Teaching Financial Responsibility

There has never been a better time to teach our children financial responsibility than now. The current economic crisis highlights the need for all of us to be budget savvy, and our kids learn by our example. I want my children to know how to be wise with their money and to have the know-how to handle such a crisis should there be one when they are adults.

Consider these financial literacy statistics:

• National Council on Economic Education – 2007 survey found that only seven states require high school students to take a personal finance course.
  
• Jump$tart Coalition – 2008 biennial survey found that high school seniors correctly answered only 48.3 percent of questions about personal finance, which was lower than the previous year’s average of 52.4 percent.
• A study by the Center for Responsible Lending indicates that students account for about six percent of all overdrafts. This percentage results to an annual overdraft bill of $963 million for people ages 18 - 24.Networks Financial Institute at Indiana State University – 2007 study of K-12 teachers found that the majority of teachers - 8 in 10 - think it’s important to teach financial literacy in U.S. classrooms, but only about half of K-12 teachers say they teach some form of financial literacy to their students.
  
• According to teachers, financial literacy skills are lacking among young people in the U.S. and many say that their students need to be exposed to the basic financial skills to function in society
  
• Parents want their kids to be financially independent but don’t necessarily have the skills to teach them

Now, there is a perfect tool parents can use to help teach their teens about financial responsibility. Current by Discover Card is an innovative debit card designed especially for kids ages 13 to 18.

Current by Discover Card puts moms in control by letting you set (daily, weekly, monthly) spending limits, block certain merchant categories (like ATMs and liquor stores) and track your teen's spending online or through email and text message alerts. Plus, because it's a debit card product, the card stops working when the limit is reached without incurring any additional fees, which protects your teens from overspending.

Current by Discover is a "teen card with grownup benefits." Current features include:

• Helpful Account Management Features: Parents can set spending limits, restrict merchant categories and track their teen’s spending through online statements, e-mail and text message alerts. They also enjoy the convenience of free, flexible loading options. Teens also can load their paychecks onto the card through direct deposit.
  
  
• Advanced Security Features: Current is protected by Discover’s $0 fraud liability, which means cardmembers are never responsible for unauthorized charges – online, offline, anytime, anywhere. Current cards that are lost or stolen will be temporarily suspended or deactivated, and cardmembers will be eligible for an emergency replacement.
  
  
• Financial Education Resources: Teens can learn how to spend smarter by logging onto the Account Center at CurrentbyDiscover.com. There they can view helpful articles on topics such as basic financial concepts, protecting yourself from identify theft, starting a savings program, and making your money go further.
  
  In addition, Current by Discover Card also is sponsoring a financial literacy program across high schools nationwide through its Money Smarts Program, designed to help educate high school juniors and seniors on basic money management skills. The Money Smarts Program covers the basic concepts of financial literacy and correlates with national academic standards set fourth by the National Endowment for Financial Education.
  
  
• Meaningful Rewards: Teens are eligible for members-only in-store coupons and online discounts when they use their card at select restaurants, movie theaters and teen-friendly merchants. What’s more, parents earn Discover Cashback Bonus or Miles when they load their teen’s Current Card using their Discover Card.
  
  
• Low Pricing: Cardmembers pay a $5 monthly charge for each card, or save $10 by paying an annual fee of $50. Fees include four free ATM withdrawals per card per month.

The card designs are very appealing, too. This one is my favorite:



Want to use this innovative tool to teach your teens about financial responsibility? Just click here for more details and to sign your teen up for the Current by Discover Card.