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Money talks: Teach your teen financial smarts

This story is provided and presented by our sponsor

Suzanne Wright
for H&R Block

Think the most challenging conversation you will have with your teen is about sex or drug use? Think again.

Money tops the list of most-challenging conversations parents have with their teens, according to H&R Block research.

According to research conducted by H&R Block, money tops the list of challenging topics for parents to discuss with their kids.

Today's young adults are growing up in financially turbulent times, and it's taking a toll. In fact, 58 percent of teens ages 13 to 17 worry they'll be worse off economically than their parents, according to the H&R Block research.

Parents often forget – or don't know how – to pass on money management skills to the next generation. The topic is often neglected at school, too; only six states require high schools to test students on personal finance concepts prior to graduation.

The resulting gap in financial literacy can have costly consequences.

"We want teens to have the knowledge and confidence to manage a complex financial future," says Kathy Collins, chief marketing officer for H&R Block. "That's why we started H&R Block Dollars & Sense."

In place since 2009, the program provides curriculum and grants to supplement personal finance education costs for schools, as well as scholarships to help students pay for higher education.

The H&R Block Budget Challenge, introduced in 2014 as part of this financial literacy effort, raises the stakes. This 10-week educational initiative is offered free of charge to public, private and home-school teachers. Educators and students receive resources to build financial acumen in subjects such as budgeting, investing, insurance, taxes, loans and credit card risks.

The Budget Challenge competition richly rewards high school students who display financial prowess. Last school year, nearly 100,000 students participated, and the company awarded $3 million dollars in scholarships and grants to 133 students and 60 classrooms nationwide. The grand prizewinner netted a life-changing $120,000.

Sherry Brown, who teaches economics at Guntersville High School in Guntersville, Ala., though the Budget Challenge would be a great addition to her students' studies when she first learned about it.

One of the first pupils Brown reached out to was senior Emma Fancher, a student leader Brown describes as "driven," who now attends the University of North Alabama. "I knew Emma could get others hooked," says Brown.

Fancher, who was raised by a single mother, knew she would have to foot her own college tuition, so she was motivated to succeed in the challenge from the start. She immediately built a budget and stuck to it, encouraging her peers to do the same.

"We're all competitive," says Fancher. "But we also wanted each other to do well, so we reminded each other to take the quizzes and do the lessons. It was more fun that way."

That competitive spirit had a huge payoff: Fancher and 10 of her classmates bested 13,000 students in their simulation group, to each snag a $20,000 scholarship. It was such an impressive accomplishment that H&R Block executives made a presentation to the winning teens in front of the crowd at a hometown basketball game.

"It was a lot of work but also entertaining," says Brown of the program. "The kids could see the value very quickly. It's a self-directed and safe way for them to learn. Because when they're on their own, no one will remind them to contribute to a 401(k). They have to have a level of initiative. "

This story is provided and presented by H&R Block. For more information about the H&R Block Budget Challenge and for tips onhow to talk with your family about finances, visit hrblockdollarsandsense.com.

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