Teaching Financial Literacy, Starting With Teens

Carolyn Geer:

Carrie Schwab-Pomerantz, 54 years old, didn’t have a lot of money growing up. What she did have was a role model in her father, Charles Schwab, who founded the brokerage firm that bears his name in a two-room office in 1971. “My dad was a struggling businessman until I was in my 20s,” she says.

As a teenager she worked (baby sitting, a paper route, secretary) and she saved—opening a savings account, moving back home after college to scrape together her first and last month’s rent and to buy herself a bed and a dresser.

And she is still working, now to impart the good money habits she learned first hand to those not fortunate enough to have role models like “Chuck.”

It’s no secret that financial illiteracy is rampant in the U.S., where less than one-third of the population can correctly answer three simple questions on interest rates, inflation and diversification, according to a study by Annamaria Lusardi of the George Washington University School of Business. But the jury is still out on what, if anything, to do about it.