When JoAnn Burl of Burtonsville, Maryland, heard that her church was co-sponsoring a financial literacy program for children last fall, she knew immediately that she wanted her 12-year-old son, Brendan, enrolled. "I think it's important for children to learn about finances and investing so they have an idea of how money works. It would have made a difference in my life if I'd had this type of information when I was younger,†the 49-year-old says. The program Brendan attended, the Youth Investment Club, is jointly run by the Lanham, Maryland-based Literacy Institute for Financial Enrichment and Reid Temple AME Church in Glenn Dale, Maryland. Brendan and about 24 other students received a crash course in saving, budgeting, and debt management. But the sessions on investing have the entrepreneurial-minded sixth grader thinking even bigger. "I would like to have stocks,†Brendan says. "I can invest in what other people own and make money off of it.†In the wake of the recent financial crisis and Great Recession, a growing number of parents and educators are increasing their efforts to teach children the rudiments of money management. "Many of our kids are constantly surrounded by messages in the media that promote overconsumption,†says Lanta Evans-Motte, founder of the Youth Investment Club and director of outreach, partner, and community programs for LIFE. "We wanted to provide an early introduction to the complexities of the financial world, so they could develop a healthy attitude about money and avoid financial struggles later in life.†Tiffany "The Budgetnista†Aliche, author of The One Week Budget (CreateSpace; $14.99) and developer of a financial game for youngsters called Real Life, agrees: "If you're not responsible with your finances at 15, you're probably not going to be responsible at 35,†she says. Studies show that financial education is sorely needed. According to a 2010 study by the University of Michigan Retirement Research Center, fewer than 33% of young adults have a basic understanding of concepts like inflation, interest rates, and risk diversification. Errol and Mercedes Pierre, parents of 18-year-old Alexa, a high school senior, believe a financial education should be a top priority. Last summer, the couple enrolled their daughter in World of Money, a finance camp founded by its CEO, Sabrina Lamb. The couple says they didn't have access to the same opportunities when they were growing up, so it was important to them to make sure Alexa received a solid financial education. Although Alexa says she initially wasn't thrilled about attending classes during the summer, she's now grateful for the experience. "World of Money has this motto: Learn, Earn, Save, Invest, and Donate. I learned to apply this by saving at least 10% of my income. I also learned not to let money sit in the bank, but to invest it.†This summer, Alexa is putting the last part of World of Money's motto to use by donating her time and becoming a peer teacher. Alexa's parents are also grateful for the education she received, especially since finding a quality finance camp is no easy task. After the Randolph, New Jersey, couple searched the Internet and came up empty-handed, they learned about World of Money via word-of-mouth. Errol and Mercedes note that the program goes beyond lessons on how to save and invest. Recently, participants took trips to the White House and the New York Stock Exchange. An early grasp of financial concepts can support a lifetime of smart financial choices. But each child has a unique learning style, and programs vary in what they offer and how the material is taught. Here are a few things you should know before choosing a program to boost your child's financial IQ. Understand the Learning Process Children learn to manage money in three key ways, says Paul Golden, a spokesman for the National Endowment for Financial Education, which has conducted research into financial behavior. "Parents are the No. 1 influencers,†Golden says. Secondly, children absorb information from whatever formal financial training they receive outside the home. The third way kids learn is by managing their own income, which they receive from either a job or by way of an allowance. The most effective financial education programs take all these factors into consideration. Golden points out that NEFE has a learning module for parents that teaches them how to communicate with their kids about money. At the very least, parents should personalize what they learn by tying lessons to the family's own financial situation, Golden advises. Adding an interactive component to financial learning can bring the information to life. Experts suggest allowing your child to make financial decisions with small amounts of cash. Using real money or cash from Monopoly, you can create fun exercises, such as playing store; or group projects, like setting up a lemonade stand. "Half the battle is getting our kids interested and engaged in what they're learning,†says Laura Levine, executive director of JumpStart Coalition for Personal Financial Literacy, a national coalition of organizations that provide advocacy, research, and education resources to improve the financial capability of young people from preschoolers to college-age adults. Group dynamics is another factor that can play a role in helping your child retain financial knowledge. It's like peer pressure in a good way, says Nan J. Morrison, president and CEO of the Council for Economic Education, an organization that trains teachers in financial literacy instruction. "If you have a whole class of kids getting excited about saving money, it's hard to be the grumpy little kid sitting there and saying ‘I don't want to participate,'†she says. While most financial literacy programs are created for children in middle and high school, you can start introducing personal finance concepts to your kids as early as preschool, says Levine. "While they won't understand very sophisticated financial concepts, they can develop habits like being frugal and being generous,†Levine says. "When they get to middle school and high school and learn about how finance works, some of the more fundamental things will already be part of their nature.†Find the Right Program Deciding to give your child a first-rate financial education is the easy part. Finding the program that best suits your child's needs can present more of a challenge. While the number of schools that teach personal finance is rising, most parents will need to look further. According to the Council for Economic Education's Survey of the States 2009: Economic, Personal Finance, and Entrepreneurship Education in our Nation's Schools, only 13 states required students to take a personal finance course in 2009. That means roughly 70% of students from elementary through high school were not required to learn anything in the classroom about managing money. If a school system doesn't offer classes or after-school financial literacy workshops, parents can look to churches, as well as community organizations such as the YMCA, YWCA, and the Boys & Girls Clubs of America. Banks and credit unions also have programs, but be wary of those that may be more interested in pushing their own agenda. "For example, if a bank emphasizes opening up bank accounts at that bank, that would be a red flag,†says Aliche. If you're having trouble locating a program in your area, ask other parents or local financial professionals for a recommendation. Prices for programs can run the gamut. Some are free; others can charge as much as $1,000. But, beware, warns Golden: High cost doesn't necessarily signify quality. "There are too many good programs out there that don't have any commercial ties that are completely free,†he says. You should also review the curriculum to make sure it's appropriate for your child in terms of his or her age and upbringing. For example, a child growing up in a rural area may not understand the financial challenges common to an urban upbringing. "What you're looking for is content targeted for your kid's group,†Levine says. Ask if the curriculum has been evaluated, suggests Golden. Many programs have a component that gauges how much a child's financial knowledge has increased after taking the program. "It can be a simple survey that is done before and after,†he says. Since price isn't an indicator of quality, "Parents may want to make sure there is some soundness to what's being taught,†Levine says. One way to do that: Find programs that use an evaluated and widely accepted curriculum. The JumpStart Coalition compiles a listing and description of teaching materials at www.jumpstart.org/jump$tart-clearinghouse.html. "If a curriculum is listed in our clearinghouse, that means we've reviewed it and determined it's pretty sound and that the content aligns with our national personal finance standards for grades K-12,†says Levine. If the program is not based on a national training module, find out the qualifications of the person who developed it, Levine suggests. "Inquire if someone on the staff has financial expertise or if a guest was brought in to help develop it,†she says. Financial education programs can take on a variety of formats, including summer camps, online modules, and after-school workshops. While the format you choose will largely depend on availability and convenience, "It should be something that happens regularly,†Aliche advises, "because knowledge that's not put into practice will atrophy.†The key is making financial knowledge as familiar to youngsters as the three R's. "If you can get kids to develop good financial habits early, they'll be able to set a goal and achieve it,†says Morrison. "Start the dialogue early and it will stay with them forever.†– Additional reporting by Sheiresa Ngo