Teaching children the value of money is one of the more important lessons parents can impart to their offspring as they grow and develop. But at what age will such lessons be most impactful for youngsters?
The earlier the better, according to Darlene Martin, founder and president of the nonprofit Money Smarts School of Finance for Children. Founded in 2007, Money Smarts School prepares children primarily in grades six through eight to understand sophisticated strategies of money management and how to navigate ever-changing financial markets.
“Over time, as I have worked in the financial services industry, on a regular basis I was faced with individuals whom I believe would have made better financial decisions earlier in life if they had a better understanding of personal finance, general economics and the financial system we operate within,” said Martin, who holds a bachelor’s degree in business and administration as well as multiple licenses in securities and insurance.
“It was then that I made a consciences decision to do something about the problem I categorized as a pandemic. My passion for finance and education developed into a personal mission to educate and empower individuals with the knowledge and tools that could potentially change the financial trajectory of their life. Since others were addressing the needs of adults, I decided to make the next generation my audience.”
A few years later, the pilot for Money Smarts School was launched and held on Saturday mornings for six weeks. Martin’s background has laid the foundation for this endeavor. She served in positions ranging from financial advisor to academic training leader at Edward Jones, and was an assistant vice president in premier banking at Bank of America. She is director of training and development at e3 Wealth.
Martin invited her friends and their children to participate in the Money Smarts School program and then asked them to provide honest feedback. The parents and kids loved the program, she noted, and continued to participate beyond the initial six weeks. Those original students now are in high school.
The parent of one of the initial students shared a comment from her daughter regarding what she had learned during her participation with Money Smarts School. The daughter was taking an entrance exam to attend a private school in St. Louis. The exam included a section on personal finance.
“The daughter commented to her mother that she was confident she scored well on the personal finance section of the exam because of what she had learned at Money Smarts School of Finance for Children,” Martin said. “She was familiar with the material on the test.”
Another student, whose parents allow him to make limited decisions regarding his personal investment portfolio, mentioned that as a result of learning about risk tolerance, he would rethink some financial decisions he had made in the past.
The curriculum is designed to change the way families think about and interact with money for generations to come. A committee made up of financial service professionals and a former educator have taken into consideration the five core competencies of financial literacy – earn, save, spend, borrow and protect – and evaluated those core competencies from the perspective of building long-term financial stability for individuals, families, local markets and regional markets. After doing so, it was determined that at least one additional core competency that assists families with generational financial growth be added to this list.
“We want parents, community stakeholders and future collaborating organizations to know that our students learn from experienced financial service professionals who, on a daily basis, assist adults in achieving their financial goals,” Martin said.
In addition, to enhance the learning experience, students are given an opportunity to practice what they have learned in the classroom by participating in real-life simulations.
This year, Money Smarts School has collaborated with LinkSTL, Lift for Life Gym and the Girl Scouts of Eastern Missouri to bring programming to more than 100 children, not including students who enroll in independent classes held on Saturday mornings. The school serves students enrolled in private schools, public schools in St. Louis County and city, and magnet schools. Martin also invites individuals in the financial service profession to partner with Money Smarts School and serve as volunteer classroom instructors.
The curriculum is being restructured into basic, intermediate and advanced levels.
The basic level focuses on cash flow awareness and cash flow strategies that can be used to manage an individual’s day-to-day lifestyle.
“It is very important that individuals understand that their attitude about and their relationship with money greatly affects the financial decisions they will make over their lifetime,” Martin said. “At this level, we strive to establish healthy money management habits.”
The intermediate level separates life into stages.
“Each stage in our life calls for a different mindset,” Martin said. “Forty- and 50-year-olds have different concerns from 20- and 30-year-olds, and so on. A single, never-married parent’s concerns may differ from a divorced parent or a married couple. Add to that unexpected life issues that have the potential to complicate matters. At this level we strive to prepare students to plan ahead for the expected as well as the unexpected.”
The advanced level takes students long and deep into sophisticated personal financial planning.
“We want students to be empowered with the knowledge and understanding necessary to have an intelligent conversation with their network of financial professionals when they reach adulthood,” Martin said. “All curriculum activities push the analytical capacity of students to plan and problem solve at an elevated level regarding real-life situations.”
Martin said it isn’t unusual for parents to remain in the classroom with students.
“We often hear parents say, ‘I wish I knew what my child knows at their age,’’’ Martin said. “Sometimes parents are invited to participate in classroom activities along with students. From this perspective, the family is able to learn together as one unit and continue the discussion outside of the classroom.”
Classes meet for two hours one day per week for eight to 10 weeks. The upcoming spring session meets from February to April, with open registration in January. Classes are conducted at St. Louis Community College’s William J. Harrison Education Center from 11 a.m. to 1 p.m. They also are held in Creve Coeur, in collaboration with a well-established wealth management firm, from 10 a.m. to noon. Tuition is $125, and scholarships are available for families that qualify.
For more information, visit moneysmartsschoolforchildren.org or call 314-956-7918.
