Savings Tips for Kids / by Tamra Orr
Title: Savings Tips for Kids
Concepts: money, saving and spending, banks, interest, credit, loans
Review: Just about every state has content standards beginning in kindergarten covering important concepts in economics. These content requirements, together with the media attention paid to the importance of financial literacy, have led to a greater need for books that will help children to become more informed about the economic world around them. The new book series Money Matters: A Kid’s Guide to Money helps to fill a niche in this literature.
One of the books in the series, Savings Tips for Kids, discusses some of the tradeoffs between spending money today versus saving it for the future. Along with presenting motivations behind the savings decision, the author also provides a clear description of the role of banks in holding people’s deposits, paying them interest in return, and using the funds to make loans at higher rates so as to make a profit. Other financial concepts are also introduced, including such alternative vehicles for saving as Certificates of Deposit (CD’s) and Individual Retirement Accounts (IRA’s), as well as some of the concepts associated with getting credit through a loan or a credit card.
While the book’s opening and closing stories and the illustrations are aimed toward young readers, the financial concepts are advanced and more appropriate for middle grade and even young adult readers who can comprehend things like compound interest, finance charges, and collateral. For such readers, Savings Tips for Kids can begin to simplify the complicated world of finance and help them to make more educated decisions about how to save their money.
Review by: Rutgers University Project on Economics and Children
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