Teacher: Bankruptcy More Common Than Diploma

One of the biggest challenges parents face today is to teach their kids how to manage money. Just as some parents struggle to balance their checkbook, it can be tough to teach children the difference between needs and wants, how to budget and how to save.

One way that parents can learn how to teach their child about financial management is through a Dave Ramsey early financial literacy class.

Ramsey is a personal money-management expert, according to www.daveramsey.com.

Materials for his Junior's class are designed to add fun to educational materials to help parents teach their kids, the site states.

Mitch Ekstrom, who will teach the class this summer at Mid-Atlantic Community Church in Crofton, said the program helps children understand the value of money and work.

Envelopes, labeled to represent savings, spending and giving, are used in the class to teach the importance of a cash supply for future use, how to spend for fun and using money to help others.

Children do chores to earn the cash that goes into each envelope. If the chores are done, the child is paid. If the work is neglected, the child gets no money. 

“There is a bunch of really powerful stuff that our societal addiction to debt has caused,” said Ekstrom. He gives the following examples:

1. Credit card companies target 18-year-olds to capitalize on brand loyalty to their initial credit card.
2. Credit problems hurt college students. An increasing numbers of college students drop out of school to work to pay off credit card debt.
3. More college-age people declare bankruptcy than graduate from college. 

“Ultimately, I’m teaching this class to educate and try to be part of the change back to personal fiscal responsibility and sanity," he said. "I hope and pray that it will trickle up to the benefit of our children, families and nation."

The class is set to begin Sunday June 26. For details or to register in advance, call the church office at 410-451-5110.

To learn more about the Dave Ramsey courses and products, visit http://www.daveramsey.com.  

For older children looking to move past the envelopes and into a bank account, Essex Bank offers an E-Kids account. Glorious Heath, manager of the Crofton branch, said E-Kids accounts are available to children up to age 18 with a $5 minimum deposit to open, no quarterly service charge, three free transactions per month -- $1 per transaction thereafter -- and interest that's credited quarterly.

“It is important that children learn early about saving money," Heath said. "Bank savings accounts show your child some very important money management elements. These concepts underlie any type of investment decisions they make throughout his or her life.”