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News Releases: 2009

OCTOBER 16

Collaboration Helps Teach Children To Save

While most of us recognize the challenges facing our economy, we often overlook the fact that a lack of knowledge—about banking, savings, money, credit and the ability to make informed financial decisions—by our citizens was one of the key contributors to the recent financial turmoil. As we work to rebuild our economy, we must not forget that one of the most important investments we can make is an investment in economic and financial education programs for ourselves and for our children. That is why the Louisville Branch of the Federal Reserve Bank of St. Louis along with the Kentucky Bankers Association, Jefferson County Public Schools,  the Kentucky Department of Financial Institutions and 13 area financial institutions came together to improve the financial literacy of first graders in Louisville, Ky., during “Teach Children To Save Day” on Sept. 29, 2009.

Louisville Branch Economic Education Specialist Caryn Rossiter (standing at the white board) walks volunteers for Teach Children To Save Day through the Will Saves for the Stars lesson.

“The Federal Reserve Bank of St. Louis believes that economic and financial education is central to America’s economic wellbeing,” said Caryn J. Rossiter, economic education specialist with the Louisville Branch and coordinator of Teach Children To Save Day. Rossiter provided the lesson plans and other materials for the program and conducted training for volunteers who visited area classrooms. “The lessons of Teach Children To Save Day will help lay the foundation for these students to become better informed consumers with the knowledge and decision-making skills necessary to have a successful financial future.”

Teach Children To Save Day is a national initiative that brings different government entities, financial institutions and financial literacy groups together to bring lessons of savings into first -grade classrooms. This is the fourth year of the program in the Jefferson County Public Schools and nearly 4,500 students have participated in the program so far. The Teach Children To Save Day lesson plan, Will Saves for the Stars is designed to help students define what saving is, understand how banks operate and set a savings goal of their own. Students also receive a free piggy bank—an important first step on the road to savings.

An important aspect that helped ensure the success of Teach Children To Save Day was making sure the volunteers from the local financial institutions understood the lesson plan and were comfortable with the prospect of teaching the lesson to first graders—a challenge to even the most seasoned of teachers, let alone a banker. To help the volunteers, Rossiter held a morning training session nearly a week before the event.  During the training, she walked the volunteers through the lesson plan and discussed ways to engage students to ensure that they understood the material. This session even featured the volunteers reading aloud to the group in mock lessons. While humorous at times, this training season was critical to ensuring a successful day on the 29th.

Suzie Findley with First Capital Bank of Kentucky waits for her turn to practice the Teach Children To Save Day lesson plan.

For the volunteers who took part in Teach Children To Save Day, the day was especially rewarding. Lisa Baechler with First Capital remarked that she “enjoyed being with the children and the loved the atmosphere.” For Deborah Williams with PNC Bank, the day was important because it helped to give children the right impressions about money, savings and banking. “It helps to dispel the myths about the ATM as a magic money machine, and helps to prove to them that there is something behind it,” she said.

As an added benefit, Teach Children To Save Day also helps to raise awareness about the importance of financial literacy in the students’ parents as well. Based on surveys from the last three years, nearly 27 percent of parents reported that the program has caused them to discuss savings and goal setting with their children. This is critical because of the role parents play in teaching their children about managing money. In its annual back-to-school survey, Capital One found that 69 percent of teens say that what they know about managing money, they learned from their parents. This makes parents the most important Teach Children To Save Day partner of all.

“The lessons of Teach Children To Save Day shouldn’t end when the bell rings,” added Rossiter. “It is important that parents take an active role in teaching their children the importance of savings, how to responsibly manage their finances and lead by example. By learning these lessons early, our children will be able to avoid more painful and costly financial lessons later in life. ”

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