A financial literacy application launched later this year aims to teach children how to manage their money, improve their earning potential and bridge the wealth gap among underprivileged communities.
The new app-based game for kids called Berryville is based on certified financial planner Mac Gardner’s The Four Money book. The story is designed for children between the ages of 5 and ten and explores the four basic functions of money – spend, save, invest and give – through a family of bears. Throughout the story, each bear represents a function of money, teaching young readers healthy financial habits to achieve their goals.
At the end of the story, the interactive book allows parents to help children create their own budget for each month of the year. Gardner only came up with the idea after publishing his first book in 2013, Motivate your moneywhich guides adults through five steps to improve their personal finances.
While the book was successful, Gardner quickly realized more needed to be done to reach children in this digital age.
“People around the world want to find a way to start a conversation with their kids about money, but often do not know how to get started,” Gardner told Yahoo Money. “It’s not just financial literacy, in my mind the ultimate goal is financial well-being. We live in a wonderful age where there is so much technology, I think technology is going to really make an impact on a scale that underserved, overlooked communities can reach. ”
Financial literacy applications can reach more children
During the 2020-2021 school year, 7 out of 10 students in U.S. high schools had access to a course in personal finance, and only 2.4 million (1 in 5 students) were guaranteed to take a course before graduation, according to Next Gen Personal Finance, a non-profit organization that supports personal finance education for children.
While a growing number of state and local governments have taken action to include personal finance education in school curricula, proponents of financial literacy believe there is still work to be done. Currently, only 21 states require coursework in personal finance in schools, and seven states mandate it as an independent course.
In addition, in schools with a 75% of Black and Brown student population – only 1 in 14 students is guaranteed a personal finance course before graduating.
“When I first wrote the Four Money Bears, I sent the copies of the book to 30 school boards. “I soon found out that the process of getting a book approved in a public school is surprisingly difficult,” Gardner said. “When I went to my children’s school to read, I noticed that many children learn digitally – on iPads or computers. When we developed the application, we wanted to make sure that whatever financial literacy tool we develop, children meet where they are. ”
With the Berryville app game, kids have the opportunity to build and manage their own farm wherever they go. The demonstration, now available for Google Play, Apple and Android devices, will allow players to experience the process of entrepreneurship, understand the basic functions of money and develop sound financial behaviors that they can adopt in their adulthood.
The Berryville app surpassed its $ 25,000 Kickstarter campaign goal after raising $ 27,505 funds.
“The application focuses on both sides of personal finance: entrepreneurship and how money is earned, and then we will have tasks and quizzes to teach them how to manage their money and how it works,” Gardner said. “It helps to socialize the idea of financial education at an early age, which is the key to long-term financial well-being. While children learn financial habits, parents will also be able to monitor their progress on the application. ”
Financial literacy affects Americans differently
According to the TIAA Institute, black and Hispanic populations often scored lower on financial literacy measures. Women of color were also disadvantaged compared to white women. The analysis, based on the 2018 National Financial Wealth Study, suggested that financial education programs do not adequately meet the needs of Black and Hispanic women.
About 66% of Americans are unable to answer more than three of the five questions on a basic financial literacy quiz correctly, according to FINRA. Findings also showed that most consumers failed to compare credit cards, with 56% saying they did not pick up cards from more than one company and compare with obtaining their most recent credit card.
“Money management is a major contributor to financial well-being, and minorities are often at a disadvantage,” the TIAA report said.
According to Gardner, technology can really bridge this educational gap over financial literacy for underserved communities, and children who may not get educational opportunities at school or at home to learn about financial well-being.
“Financial education can close the wealth gap. We have all the data that shows that because we incorporate these lessons at an early age – these children’s financial lives are much more successful, ”Gardner said. “Learning financial habits can change into financial behavior and then later characteristics that we implement as adults. If we have the tools to introduce children to these concepts at such a young age – it can really make a difference. ”
Gabriella is a personal financial reporter at Yahoo Money. Follow her on Twitter @__gabriellacruz.
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