Helping kids make good money decisions
St.
Louis area kids have a new tool in learning how to handle
their money. It's in the form of an interactive computer
game called My Savings Quest.
A.G. Edwards Inc, the local financial services company,
last month released the finished game to the public. It
comes both in a free on-line form and a
printed classroom version.
The game took nearly a year to design and all the developmental
work was done by the company's own personnel. Planning
the game started last spring. A pilot design was first
tested last fall.
M. Sophie Beckmann is a financial planner for A. G.
Edwards. She also was one of the workers who developed
and tested the game. Even her son, 12-year-old Tommie,
had a hand in its development.
The 6th grader was one of the kids who tested the prototype
and offered suggestions to make it more useful to kids.
Ms. Beckmann said the game is designed to help kids improve
their "financial literacy." The main goal is to let kids
know what it takes to make good financial decisions. That
also should include saving money for a later day, she
said.
She pointed out that Americans had a "negative savings
rate" last year, "for the first time since the Great Depression
(in the 1930s)." That means Americans spent more money
in 2006 than they earned.
She added, "We've been in a negative savings pattern
since June of 2005. Twenty years ago, Americans' savings
rate was plus 12%."
Ms. Beckmann said this negative savings is compounded
by the amount of credit card debt American families have.
Those debts become fixed expenses for the future, meaning
families will have less discretionary income because of
debt they've already incurred.
She said her company wants to help young kids learn
early what it takes to make good financial decisions.
My
Savings Quest helps kids understand about budgeting their
earnings and deciding how to use their money. Individual
kids pick an occupation, a salary rate and what they need
to spend on fixed expenses, such as rent, food, clothing
and transportation.
The budget model also insists one fixed cost is 10% of
earnings into a savings account.
If
there is any of the earnings left after fixed expenses,
that's what they have left for discretionary spending,
such as entertainment.
The budget also includes categories for emergency spending,
such as car repairs.
The budget cycle is for one month. The whole game lasts
six imaginary months. But, for kids playing the game,
all this decision-making is compressed into about 20 minutes
of game time.
(To sign on to play the game, go to www.mysavingsquest.com.
You can work the interactive game right from your home
computer without registering.
(Families and teachers who want to receive the printed
lesson kits of My Savings Quest can order them from www.agedwards.com/nesteggknowledge
)
Those kids who play My Savings Quest also can receive
a real piggy bank for saving their real money. These unique
banks have two slots, one is for short-term savings and
another for long-term savings.
Ms. Beckmann said My Savings Quest is a new part of the
company's overall plan to help kids understand their money.
Earlier, A. G. Edwards released a financial game for younger
kids. It was called Big Money Adventure.
She said another game, ABC's of Money Management, will
be released later this year. It will be for high school
kids.
The Nest Egg Knowledge website also provides tips to
kids and families about saving money. Among the tips are:
