In honor of Financial Literacy Awareness Month, at Iowa Trust we understand the importance of helping our community’s youth build a strong financial foundation so that they better understand basic concepts like budgeting, simple interest, and establishing and maintaining good credit.

According to the Council for Economic Education’s Survey of the States, only 30 states in the U.S. require high school students to take a course in personal finance and only 25 states require students to take an economics course. While this demonstrates a marked improvement since CEE’s first survey in 1998, there remains a sizeable financial education knowledge gap.

Iowa Trust believes that financial education improves the financial health outlook for our youth and better prepares them to tackle unexpected financial situations or prepare for significant life milestones like paying for college, purchasing a home, or opening a business.

Iowa Trust offers the following tips for teens to grow their money management skills and prepare for the post-graduate workforce:

  • Set Specific Measurable Attainable Realistic Trackable goals. Choose your priorities—whether it’s saving for a computer or building an emergency fund—and make sure they are achievable. Create a plan of action and measure your progress over time.
  • Start a savings account (if you don’t have one already). Iowa Trust offers automatic transfer services to move a set amount from your checking account to savings monthly.
  • For working-age students, consider part-time or seasonal employment. You will learn more about personal responsibility and have an opportunity to manage expenses.
  • Track your spending and avoid making impulse purchases. Create a budget and review it periodically to make necessary adjustments.
  • Gain perspective about risk and reward. Knowing how stocks, bonds, and mutual funds can affect an investment portfolio shows you how financial decisions can grow—or shrink—your savings.
  • Learn about credit scores—a representation of your financial past, present, and future.

To learn more about money, cyber security, how to manage your finances effectively, and much more, visit our help center for additional resources.