Help: giving 10 minute talk to 100+ 5th graders learning about money & savings

[FIKris]

So, I've been asked to give a 5-10 minute talk to a group of 100+ fifth graders right before their "Ameritowne" visit, it's part of a program aimed at teaching kids money skills from an early age.  (Our schools have been trying to incorporate financial literacy into the curriculum).

I've given so many talks before, but for some reason, the prospect of trying to reach kids learning important life skills--the very basics of money, spending, debt, and investing-- is kind of daunting.

What would you say to a bunch of 5th graders if you had 5 minutes to address them? 

What age-appropriate things can I say?

Tips and advice welcome!

[solon]

"Raise your hand if you like money! (show of hands)

Raise your hand if you know you have to work hard to get money! (show of hands)

What would you say if I told you your MONEY could make money - so you don't have to?"

And then show them how money makes money. If all they get is that powerful concept, they will be on the right path.

Hint: don't use the phrase compound interest.

[Chris Pascale]

This is so cool. You're really going to help these kids.

Minutes 1-5:
Introduce yourself.
Ask them where money comes from? You'll get some funny answers, and someone will reveal they have a business, which will be cool.
Ask them if they know how old they have to be to get working papers.

Minutes 6-7
Talk about how if they just start putting $10 each month away into a fund from 12 to how old you are, they'll have $xx,xxx.
This is your money making you more money.

Minutes 7-9
Tell them that there are people who have become rich doing all kinds of jobs, like teachers who are millionaires, but there are also pro athletes worth nothing! How did this happen? The teacher saved some of the money away, but the pro athlete spent it all.

Minute 10
Questions

[SailingOnASmallSailboat]

"Raise your hand if you like money! (show of hands)

Raise your hand if you know you have to work hard to get money! (show of hands)

What would you say if I told you your MONEY could make money - so you don't have to?"

And then show them how money makes money. If all they get is that powerful concept, they will be on the right path.

Hint: don't use the phrase compound interest.

This is great (from a former 5th grade teacher). Get them involved. Waste no time on introductions, IMO, other than "I'm Kristen" (or whatever the school uses for addressing an adult). 5 minutes is also basically zero time; 100 kids is a large audience. What ONE thing do you want them to get out of the presentation? (Money makes money. Paying minimum payments means you pay a lot more in the long run. Saving is good; spending less is better. Whatever your favorite main point is!) Can you get that point across using humor, or Legos?

They'll expect to be talked at. Surprise them and you'll have a far better chance of whatever you teach sticking.

[Omy]

I first heard about compound interest at that age and I was SOLD on the concept. The idea that money can make money literally changed the trajectory of my financial life at that early age.

[FIKris]

Thank you!  These are great suggestions!  OK, I will plan to get them involved with questions, and drive home the concept of "money can make money." I also really like the idea of stressing that people can become wealthy doing all kinds of jobs, and that what matters is how much you save, not how much you make. 

[solon]

Thank you!  These are great suggestions!  OK, I will plan to get them involved with questions, and drive home the concept of "money can make money." I also really like the idea of stressing that people can become wealthy doing all kinds of jobs, and that what matters is how much you save, not how much you make.

You have 10 minutes, and 100 rowdy 11 year olds. I think you can only make one point, if you want it to stick.

[BlueHouse]

"Raise your hand if you like money! (show of hands)

Raise your hand if you know you have to work hard to get money! (show of hands)

What would you say if I told you your MONEY could make money - so you don't have to?"

And then show them how money makes money. If all they get is that powerful concept, they will be on the right path.

Hint: don't use the phrase compound interest.

This is great (from a former 5th grade teacher). Get them involved. Waste no time on introductions, IMO, other than "I'm Kristen" (or whatever the school uses for addressing an adult). 5 minutes is also basically zero time; 100 kids is a large audience. What ONE thing do you want them to get out of the presentation? (Money makes money. Paying minimum payments means you pay a lot more in the long run. Saving is good; spending less is better. Whatever your favorite main point is!) Can you get that point across using humor, or Legos?

They'll expect to be talked at. Surprise them and you'll have a far better chance of whatever you teach sticking.

The concept that really hit home to me was about the idea of using credit: 

"Do you know what credit is? 
Credit is when you spend money before you have earned it. 
Think about that!"

(you may need to bring up credit cards vs. charge cards if anyone asks)

[reeshau]

You might want to listen to this episode of ChooseFI with Jackie Cummings Koski.  Toward the end of the interview, she talks about the points she gives in a 30 minute talk.

https://www.choosefi.com/money-letters-to-my-daughter-with-jackie-cummings-koski/

I do agree that compound interest, expressed in an interesting way, is a good hook.  I believe the way Jackie describes it is "If you could save $50 a week from now through the next 40 years, and invest it in the stock market, you could have one million dollars.  Everyone in this room can be a millionaire."

[solon]

@FIKristen just wondering if you have an update? How did it go?

[John Galt incarnate!]

So, I've been asked to give a 5-10 minute talk to a group of 100+ fifth graders right before their "Ameritowne" visit, it's part of a program aimed at teaching kids money skills from an early age.  (Our schools have been trying to incorporate financial literacy into the curriculum).

I've given so many talks before, but for some reason, the prospect of trying to reach kids learning important life skills--the very basics of money, spending, debt, and investing-- is kind of daunting.

What would you say to a bunch of 5th graders if you had 5 minutes to address them? 

What age-appropriate things can I say?

Tips and advice welcome!

The crucial  lessons are

1. the increased value of savings/investment from  compounding   

2. the longer the period, higher the rate of return,  the greater the compounding

I would convey lesson 1 & 2   with  visual examples.

I'd bring  thousands of pennies and show the pupils how much they saved over a certain period of years by putting the saved pennies in a one pile.

Then I'd put the growth of savings/ investment ("pennies you don't have to save") from compounding in  another pile.

I'd do this for different periods and different rates of return to show them the results of  compounding and how valuable it is.

[Chris Pascale]

When I saw this at the top of the list, I thought maybe there was an update.

Would love to know how it went.