Photo: Joe Duty (Flickr)
Ray Boshara is a senior advisor at the Federal Reserve Bank of St. Louis. During a recent event in Evansville, he told an audience lessons in financial literacy and money management need to begin in childhood. He says it’s particularly important to get children on the path towards savings.
“There’s one study that shows youth who had a savings account were seven times more likely to go to college than kids who did not, and that’s controlling for everything,” he says.
Boshara says that even in tough economic times, it’s possible for people at all income levels to save money. Preeti Mehta is the Director of Evaluation at the Doorways to Dreams Fund, a non-profit organization aimed at creating savings innovations for lower-income people. She’s helped make online video games intended to provide financial education to kids.
“Being able to manage debt, understand credit cards. Another is around budgeting. Retirement savings,” she says.
Mehta says Doorways to Dreams has partnered with the military, governmental entities like the Federal Reserve and grass-roots community organizations across the country as a means to spread the games to as many kids as possible. They are available for free online at financialentertainment.com.