MINNEAPOLIS, April 9 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper Jaffray
(Piper Jaffray), a client-focused securities firm, has developed a fun,
interactive financial education program for children in fourth and fifth
grades, which it will launch Thurs., April 10, in collaboration with National
Teach Children to Save Day. The program illustrates the power of saving and
investing -- and the importance of starting at a young age.
Piper Jaffray financial advisors will visit over 80 classrooms across
America on National Teach Children to Save Day, which was initiated by the
American Bankers Association Education Foundation in 1997.
"Piper Jaffray is committed to the communities in which we live and work,"
said Paul Grangaard, head of the Private Advisory Services division, U.S.
Bancorp Piper Jaffray. "With the National Teach Children to Save Day program
we hope to foster financial knowledge for children to take home to their
parents to open up discussions on saving, sharing and investing."
Financial Advisors Teach School
On National Teach Children to Save Day, U.S. Bancorp Piper Jaffray
financial advisors will attempt to make saving and investing money even more
fun than spending it. Fourth and fifth graders will be introduced to a
savings brain-teaser the firm developed called, "Let's Make a Deal." Children
are to assume that their parents are planning to give them an allowance to do
a daily chore, such as walking the dog or cleaning their room. They are asked
to give their parents a choice between paying them $25 a month or paying them
a penny the first day, two pennies the second day, four pennies the third day
and so on, doubling the pennies each day. Which should the parents choose?
While children typically will say $25, most adults know there's a hitch.
And they're right. Within two weeks the pennies add up to $163.83. After one
month the pennies add up to $10,737,418.23! Following this brain-teaser,
financial advisors will teach students how to make money grow through a
savings account or CD and will introduce them to the concept of stocks through
a stock game. Finally, they will give each student a Moonjar moneybox.
Moonjars encourage children to envision their dreams and creatively bring them
to life. The Moonjar is made up of three moneyboxes; saving, sharing and
spending. The Moonjars act as teaching tools that connect wish-upon-a-star
hopes with conscientious decision-making and financial objectives. Moonjar
moneyboxes also inspire positive family communication, responsibility and
commitment to the larger community.
Parents have a role in helping children to save
Parents have an important role in reinforcing savings lessons children
will learn in school April 10. Here are some savings tips for parents to use
with children at home:
1. Give them an allowance with the understanding that part of it goes
into their own savings -- a first step toward learning to budget.
2. To make their savings visible and real, have them build up savings in
a piggy bank. Then help them open their own bank savings account, and
have them make deposits each month.
3. Use their monthly statements, or the record in their savings
passbooks, to show them how their money is growing.
4. For every dollar children earn, encourage them to spend 25 cents on
what they want or need now, put 25 cents away for a bigger-item
purchase later and save or invest the rest. (That's a 50 percent
5. Make savings and investing fun. Give children play money to "invest"
in stocks they can track in local newspapers. If the stocks go up,
pay them in more play money; if the stocks decline, they pay you.
6. Best of all, show children how to save by example. Adults can save by
having a portion of their paycheck directly deposited into a savings
account, IRA, 401(k) account or other savings options.
(Source: American Bankers Association)
College savings plans can help parents save for their children
In addition to helping children to save their own money, parents can also
help children get a good start in life by saving for their children's college
education early. The returns from an investment in college beat just about
any other investment:
-- College graduates can expect to make an average of $1 million more
over their professional lives than can their high school-graduate
counterparts. (Source: U.S. Census Bureau)
-- Personal bankruptcy filings are at record highs in America.
1.5 million individuals filed for bankruptcy in 2002, which is about
one filing per 69 households. (Source: The American Bankruptcy
The lifetime rewards of college require a substantial capital outlay,
however. The cost of a public college education today averages $4,081 a year,
while the cost of private college today is about $18,273 a year, according to
The College Board. Typical room and board expenses run about $5,582 at a
public college and $6,779 at a private college. And the cost of college is
outpacing inflation. The College Board estimates that public college for a
child born this year will likely cost more than $124,00 over four years, and
private college will total $270,000 over four years.
Education Savings Plans Help Foot the Bill
College savings plans, including the 529 college savings plan and
Coverdell Education Savings Account, allow parents or grandparents to set
aside money each year for college tuition tax deferred. When a child is ready
for college, he or she can also make federally tax-exempt withdrawals to pay
for qualified expenses such as tuition, as a result of new tax laws.
These plans are only two of several options for college saving. Parents
should learn about all the options before deciding on a plan that's right for
them. A good overview is provided on the Web at www.piperjaffray.com .
The lesson for both parents and children is that putting away even a
little money consistently can help children achieve their dreams in life. And
a little help from a financial advisor to determine savings and investing plan
will help families prepare for a bright future.
U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based U.S. Bancorp
is a focused securities firm comprised of three divisions: Equity Capital
Markets, Fixed Income Capital Markets and Private Advisory Services. The firm
provides a full range of investment products and services to individuals,
institutions and businesses. The firm has over 120 offices in 24 states
across the country. The Equity Capital Markets Division focuses on the needs
of growth companies in the health care, technology, financial institutions,
consumer and communications growth sectors. The firm has a national
reputation for its expertise in fundamental research and equity and debt
financing. The Fixed Income Capital Markets business provides bond issuers,
individual investors and institutional investors expertise in investment
banking, underwriting, trading, sales and research. The firm offers
innovative solutions in corporate and government debt financings with
particular expertise in corporate, health care/hospitals, real estate, higher
education and government debt. The Private Advisory Services division
financial advisors provide guidance in retirement planning, education
planning, estate planning and wealth accumulation. Investors select from a
wide array of products, including fee-based products, stocks, bonds, mutual
funds, annuities, insurance and trust services. U.S. Bancorp offers a
comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp
Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray.
Securities products and services offered through U.S. Bancorp Piper Jaffray,
Inc., member SIPC and NYSE, Inc., a subsidiary of U.S. Bancorp. For more
information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com . Non-
deposit investment products are not insured by the FDIC, are not deposits or
other obligations of or guaranteed by U.S. Bank National Association or its
affiliates, and involve investment risks, including possible loss of the
principal amount invested.
SOURCE U.S. Bancorp Piper Jaffray