blog.weProsper.org

Happy New Year… again! If you’ve had trouble getting those resolutions off the ground, don’t fret. You have a second chance for a new beginning. Today marks the first day of the Year of the Ox in the Chinese Lunar calendar. According to the Chinese zodiac, which is based on a 12-year cycle of animals, the Ox is the sign of prosperity through diligence and fortitude. People born under the sign of the Ox are patient, dependable, and tireless in their work.

Wikipedia’s crowd-sourced astrologers report: “The Ox is not extravagant, and the thought of living off credit cards or being in debt makes them nervous. … Security is their main preoccupation in life, and they are prepared to toil long and hard in order to provide a warm, comfortable and stable nest for themselves and their families.”

Facing the economic forecast for 2009, there has never been a better time to heed the wisdom of the Ox. Work towards your goals. Save for the future. Pay down your debt. Live within your means. By building up good habits this year, you’ll be better prepared when the unpredictable and reckless Tiger takes over in 2010.

Almost exactly one year ago, on January 22, 2008, President George W. Bush signed an Executive Order creating the President’s Advisory Council on Financial Literacy. The Council’s purpose was to “work with the public and private sector to help increase financial education efforts for youth in school and for adults in the workplace, increase access to financial services, establish measures of national financial literacy, conduct research on financial knowledge and to help strengthen public and private sector financial education programs.” For the first time ever, it became the policy of the federal government to “to encourage financial literacy among the American people.”

The creation of this Council could not have come at a more opportune—and desperate—moment in our economic history. Yesterday, the front page of the New York Times reported that 92% of Americans polled felt that the economy was in fairly or very bad condition. With the financial crisis and market turmoil we face today, and the uncertain times ahead in this recession, we must address the financial illiteracy that plagues our nation and take action to improve our economic future.

In its first year, the President’s Advisory Council on Financial Literacy launched the first-ever National Financial Literacy Challenge, endorsed MoneyMath curricula and community-based pilot programs, created a partnership with the USA Freedom Corps that provides a centralized resource for financial literacy volunteer opportunities across the country, and hosted town hall meetings, roundtables, conferences and more. (Read about the Council, its tasks, accomplishments, and recommendations in its first Annual Report: download the Executive Summary or full report.)

When President-elect Barack Obama takes office tomorrow with what promises to be a history-making inaugural presidential address, he will undoubtedly raise the issue that is at the forefront of nearly all American’s minds. But the nation’s economic problems cannot be solved by speeches and stimulus packages alone. Education is critical. We hope that with the support of the incoming president and the help of the Council, we can improve financial literacy in this country and mend our troubled economy.

weProsper.org and our sister site, iThryv.com, were featured on InsideTheSchool.com, a Web site that provides practical teaching strategies and resources to middle and high school teachers in a weekly e-zine. Click here to read what they have to say about iThryv Professor and the future of online banking in education.

Most students in America graduate from high school with no formal education in personal finance. With a population lacking fundamental classroom training in money management, it’s no wonder that our economy is in terrible shape.

Student loan giant Sallie Mae recently found that more than half of college students accumulated more than $5,000 in credit card debt during their time in school, while one-third of college students piled on more than $10,000. Compound this with the mounting cost of tuition and the diminishing availability of financial aid, and the next generation faces a rough road ahead.

Yet there is a way to help students before they get mired in debt. By teaching kids about credit, debt, income, and interest, we can better prepare them for the responsibilities and consequences that come along with the ubiquitous plastic being proffered on college campuses. The Jump$tart Coalition for Personal Financial Literacy, an advocacy group based in Washington, D.C., is working to bring financial education into the classroom by creating national standards for K-12 Personal Finance Education. Currently, only three states in America require a stand-alone personal finance course in the public school system, and 17 states require that personal finance be incorporated into other coursework. That leaves 60% of states with no requirements whatsoever for personal finance education. (See where your state stands by visiting Jump$tart’s interactive map.)

Until we place more emphasis on education, our youth will continue to face financial challenges without the skills they need to overcome them. weProsper is partnering with Jump$tart to encourage school districts around the country to adopt national education standards. By joining our movement, you can help us bring financial literacy to the next generation. It’s easy and free to sign up—just click here to get started!

The most important lessons we learn in life are often not those that we study in books or memorize in a classroom. Rather, they are the ones we encounter in everyday life by watching others, interacting with our surroundings, and learning from experience. A real-world scenario creates the best opportunity to teach youngsters important skills at a moment when they are actively engaged in seeking out knowledge.

When parents and teachers recognize situations that can translate to teachable moments, they can offer valuable life lessons to children of all ages. Fractions instantly become relevant when halving a recipe for double-fudge brownies; percentages make all the difference when shopping for new clothes at 60% off; and the standard grocery checkout line question of “credit or debit?” presents a tidy introduction to money management 101 when you take the time to explain the difference to a curious kid.

As you gather up the bank statements, credit card bills, and other household accounting receipts you’ll need for tax planning, why not use the opportunity to talk to your kids about income and expenses: the fundamental building blocks of any budget.

Plus, with the volume of news about the current economic crisis on television, in the newspapers, and online, there is a wealth of opportunities to translate headlines into discussions with your children about fiscal responsibility. Teenagers can learn a lot from the same articles that you’re reading if the content is relevant to their interests. Test the water with this eye-opening article on text messaging, a subject near and dear to any teen’s heart, from last week’s New York Times. They may be surprised by just how compelling the business section can be.