One way was giving each child a week in the kitchen & a limited budget for groceries. I insisted that they plan meals, go shopping, and cook for the family for their week. If there was money left over, there was the reward of doing something with it as a family (movie, rental, etc.) The neatest part was, we found some very tasty recipes that I never would have tried and the kids learned to make choices based on cost vs. value.

Another thing that was prompted by their grandpa was opening a checking account while still in high school. He fronted each with $100 if they would turn their meager savings accounts into checking accounts. They found out quickly that when their money was in a more easily accessible checking account, it disappeared quickly. The younger of my daughters saw how quickly the well dried up and emptied her checking account back into savings!

I talked to the banker when they moved away to college about the possibility of getting together with our school board and teaching a hands on segment of budgeting to our local high school home-ec classes. I think this really needs to be taught much earlier than to the standard high school aged classes, though. Middle school math classes would be prime targets. Our local credit union is sponsoring savings bees that challenge children from kindergarten to Seniors in high school to save with a prize for the top savers. It has always floored me that we teach our children to use a sewing machine, but ignore something as important as their financial future and security.

My oldest kids are now in college, but I think they are making great strides at living within their means. I may have the only kids in college who don’t call me weekly, or even monthly, needing a cash infusion.

That being said, I *still* would like to see someone address my needs in regards to investment and planning. Last time I changed my investment accounts, I must have used a dartboard. And I am far from the previous poster’s ideal client with at least $500k worth of assets. :S

The other major issue I have with most 401k/403b plans is the hidden fees and poor choice of investment options. I think this issue is starting to be addressed, but it is still difficult for small employers to find cost effective options.

I think one of the key issues in Financial Education and Literacy is the financial industry itself. Individuals become disillusioned with “advisors” because they go in seeking unbiased financial advice and end up getting a sales pitch disguised as financial advice. Or they find a fee-only advisor that only accepts clients with assets over $500,000. Using the internet for decision making means wadding through often conflicting information and hoping that you make the best choice. I agree that a sefcure financial future is not complicated: start early, spend less than you make, and keep your assets diversified.

In the current environment where many people’s retirement funds have been decimated, I would like to see an idea where people could “catch up” on their retirement contributions. Instead of the annual contribution limits, there should be a aggregate contribution limit based on your age (e.g. (AGE-20) * $3000 for IRAs) In any year, you can contribute as much as you want until your total retirement account cost basis hits your aggregate limit. In addition, if your retirement account’s value has fallen BELOW your basis, you can contribute funds to bring it up to your basis limit.