Wisdom, guest column

Wisdom is an invitational column where an outstanding woman will share a message that we hope you'll find inspiring, motivational, and empowering.

Have your teen sit down with you as you make out the bills, or better yet, have them make out the bills.

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Financial Literacy is the Key

René Nourse, CFP, Vice President - Wealth Management, Smith Barney

According to a recent national survey by Jump Start Coalition, high school seniors who took part in a national survey on basic financial knowledge scored an average grade of 50% – a failing grade. Today, nearly 75% of all college students possess a credit card with an average balance of $3000. In 2001 more young adults filed bankruptcy than those who graduated from college! And even more shocking – the United States has the lowest savings rate of any of the industrialized nations, less than 1%! These statistics belie the underlying problem that we as parents, educators, community leaders and mentors must come to grips with: that the lack of basic financial management skills will continue to not only erode our financial strength as a nation but could also lead to the demise of the attainment of a strong economic base in our own communities that we so sorely need.

While it is true that our economy is based upon consumerism, I believe that as an unfortunate consequence, we have placed a higher value on spending money and being very good consumers – and virtually no value on saving and/or investing it. I dare say that many of us did not have the luxury or foresight to be taught about money management skills while we were growing up. I know I certainly didn't – and over the years, I have learned by asking questions, reading books, observing, and finally, by doing. We must begin in the home – the first classroom for our kids – and teach them the importance of money management. Begin by talking to them about what it takes to make your household run: how much it costs for mortgage/rent payments, the cost of food: eating out and at home, transportation costs, health and dental bills, etc. You might even have your teen sit down with you as you make out the bills or better yet, have them make out the bills. Start by telling them how much money is available and how much the monthly expenses are. Perhaps, they'll think twice the next time, they want a pair of $100 sneakers or outfit to go to a party.

The more we engage our kids, the greater their awareness and the better their perspective becomes. There are many resources available for parents and educators to teach kids about money and financial issues, the vast majority of which are free or have a nominal cost, including classes (for adults and kids), books, online resources, camps and more. I've listed a few resources at the end of this article just to get you started, however, if you've got a computer or the library – you'll find a tremendous amount of material available to get you started. In conclusion, there are no easy answers here – it will take work, it means that habits will need to be changed and re-formed, but it can and will happen – and more importantly, it must happen because in all honesty, our own lives and livelihoods depend upon it.

Resources

http://financialeducation.citigroup.com/citigroup/financialeducation/ http://www.smithbarney.com/yin/home.htm http://ww3.primerica.com/public/how/how.html http://www.thirteen.org/edonline/ http://www.jumpstartclearinghouse.org/ http://www.nul.org/economicempowerment.html http://www.rainbowpush.org/economicliteracy/index.html http://www.treas.gov/offices/domestic-finance/financial-institution/fin-education/resources/

Biography

René Nourse is a member of a rare breed: an African American female in the male dominated financial services industry. While women comprise just 10% of the professional ranks, less than one-tenth of 1 percent are African American female. Despite this type of environment, she has survived and continues to thrive. She considers herself a "Financial Architect": someone who helps individuals build, reconstruct or simply put their financial houses in order. She offers a unique blend of common sense, technical knowledge and experience in developing financial strategies for her clients, with the goal of being a financial partner for life. Moreover, she specializes in working with women: especially women in transition, such as those experiencing health challenges, divorce or at the death of a spouse.

Since 1985, René has built her practice on a foundation of integrity, and confidentiality with a commitment to the highest level of professionalism. She is a Certified Financial Planner and Vice-President of Investments with Smith Barney in Torrance, California. She began a career in the financial services industry as an insurance representative in 1979 and from there moved on work in the "largest marketplace in the world" – the U.S. stock market. In 1985, she joined Morgan Stanley Dean Witter as a Financial Consultant and in 1991 was chosen to represent the firm in a national print advertising campaign. The campaign spanned three years with appearances in magazines such as Business Week, Time and Working Woman.

René is a frequent guest speaker on the subject of Women and Finance using innovative platforms and timely topics to deliver the message of financial empowerment through education. As a Financial Professional for Women & Company, an organization dedicated to developing and increasing women's financial prowess, she is uniquely qualified to assist women on their journey toward financial independence. Career activities aside, she is also active in a number of civic and community organizations. She serves as Executive Director of Los Angeles Teenshop, an organization dedicated to providing mentoring, cultural, social and civic activities to young women between the ages of 13 and 18, and as an Advisor to City Scholar's Foundation, which provides training and resources for community based after school programs in Southern California.

rene.a.nourse@smithbarney.com
http://www.fc.smithbarney.com/nourse