Understanding the value of money, the cost of debt, and how to develop and follow a budget are all key skills for success in life. Youth often learn about money first within their families when they receive an allowance, are paid to do chores; or listen to their parents talk about paying bills and saving for retirement. To prepare them further, the Scout program has multiple opportunities for youth to engage in practical, hands-on, real-life practice with money, all within a safe space and with adult supervision.
Beginning with the foundational recitation of the Scout Law, youth learn that “a Scout is thrifty”, an overarching tenet that directs activities and discussions about the value of money. Cub Scout meetings can be organized around financial management topics and Scouts BSA members plan camping or other group trips and calculate the costs involved; calculate how much money needs to be raised for the group to be able to camp; and plan their meals and shop for groceries within a budget. In addition, many Scout Units raise money to support their skill-building and activities by engaging in fundraising activities. This provides real-world experience for Scouts to learn sales skills, including how to set up goals, add up orders, make changes, and calculate sales per hour.
Three times a year, the Alamo Area Council offers the Personal Management merit badge. The comprehensive requirements help Scouts develop an understanding of core financial literacy concepts including
- annual percentage rates;
- budgeting;
- credit reports and scores;
- credit and debit cards;
- types of insurance;
- types of investments;
- return on investment and risk;
- savings/emergency reserves; and
- loans.
The merit badge process teaches youth about mapping a plan for their life, including setting short-range and long-range goals, and leads them through the process of exploring different ways to reach those goals. Working on this badge is engaging and requires youth to participate, discuss, and share as items are presented during three class meetings. Along the way, youth talk with their parents, fellow Scouts, and Merit Badge Counselors to gain additional insight and to be held accountable. The requirements are infinitely customizable, allowing Scouts to create and follow a budget based on their own income and expenses for 13 weeks and research and budget for a major family expense that fits their life and their family’s values. The merit badge exposes Scouts to the concepts and terminology of finances, banking, insurance, investments, and more to help prepare them for financial decisions down the road.
Helping future generations understand how to manage money and avoid debt are invaluable life lessons that positively impact those individuals as well as the community in which they live.
For more information about the Merit Badge, see https://www.alamoareascouting.org/camping/merit-badge-university/personal-management-merit-badge/.
Links to resources are shared on the website at https://www.alamoareascouting.org/news/personal-management-merit-badge-information/.
The Personal Management Merit Badge promo video can be found at https://youtu.be/sBnOUhCp5p8.
