personal financial literacy (pfl) whats it all about?

Personal Financial Literacy (PFL)

What’s it all about?

A Call for Action

National Association of State Board of Education

North Carolina Department of the State Treasurer

The North Carolina General Assembly The North Carolina Department of Public

Instruction

“The U.S. economy is the eighth wonder of the world. Americans’ ignorance of it is the ninth.”

Arthur Levitt

Former Chairman,

New York Stock Exchange

Today’s Teens…

Fewer than half of teenagers polled understood how to budget

Entering college freshmen have an average debt of $1.500 on personal credit cards.

The average credit card debt for college seniors is $2,864; a 48% increase from freshmen

Today’s Teens…

The average debt of graduating college seniors including student loans is $20,000.

Americans under age 25 are filing for bankruptcy faster than any other age group.

The News…

Personal Financial Literacy is now a requirement in North Carolina

Multiple curricula will reflect changes in their NC Standard Course of Study

A series of regional workshops are designed for training

Support staff includes national partners, local experts and NCDPI Social Studies Consultants

Multiple resources and materials are available for instruction

NC Legislation

HB 16 (1/31/05) SB 622 (2005) SB 1113 (3/22/07) HB 1473 (2007) Appropriations Act for

teaching PFL in Civics and Economics

HB 16

Requires the public schools to teach personal financial literacy in high schools Up to five years to develop curriculum

Senate Bill 622

Requires the teaching of Personal Financial Literacy in Public Schools Up to two years to develop curriculum

Senate Bill 1113

Appropriate funds for instruction in personal financial literacy (Algebra I and Integrated Math beginning with the 2008-’09 school year)

House Bill 1473

Appropriates recurring funds for instruction in personal financial literacy (Civics and Economics) Train teachers (2007-’08) Modules in Civics and Economics curriculum

(2008-’09)

PFL legislation…

How will it affect Social Studies

Teachers Students

PFL… Civics & Economics courses will include

modules of instruction in Credit Savings Investing Checking

A pre- and post- survey of Personal Financial Literacy

Why Civics & Economics?

It is a required course - all students take it PFL should begin early in the HS career

Teens purchase Teens have charge cards Teens begin to work by 10th grade

Additional courses are available in other content areas

Our Resources…2005-’06 Personal Financial Literacy

Documents Elementary Middle Secondary

Supplemental Secondary Resource Document

PERSONAL FINANCIAL LITERACY: ACTIVITIES AND TEACHING STRATEGIES FOR SECONDARY SOCIAL STUDIES

Section I - Economic BasicsThe Four Factors of Production and their RewardsCandy Bar Economics

Section II - Taxing and Spending Local Taxes: Where Does All The Money Go?State Taxes: Why Do We Pay the State?Economic Investment in a Community: A Case StudyIs There Such a Thing as a Good Tax?

Section III - Money ManagementDream LifeFamily Financial Project

Section IV - Savings and Investment Investment: Does Money Grow?

Section V – Credit Credit: Friend or Foe?Read the Fine Print

Section VI – Insurance Insuring Against RiskInsurance: Do We Need It?

Section VII – Banking Banks and Consumer ServicesNo Rubber Checks

Additional Resources

Our Resources…NEFE

Our Partners…SECU

Provide training to teachers Provide resource materials Provide human resources Are local (over 277 locations throughout NC) Services and materials are free

Local Partners…• CPA’s• Certified Financial Planners

(CFP’s)& Financial Advisors

• Insurance Agents• Banks & Credit Unions• Junior Achievement• Non-Profit Agencies• Other Government Agencies

- HUD, Social Security Administration, Dept of Labor etc.

• Retired Professionals

PFL Contacts NCDPI Staff

Tracey Greggs, 6-12 Social Studies Chief; TGreggs@dpi.state.nc.us

Judy McInnis, 6-12 Social Studies Consultant; JMcInnis@dpi.state.nc.us

Kelly Thomas, 9-12 Social Studies Consultant; KThomas@dpi.state.nc.us

Leigh Brady, Senior Vice President - Education Services, SECU 1-888-478-4648 (Toll Free)

Esther Dunnegan, Education Consultant; estherdunnegan@aol.com

My Financial Literacy… Budget Busters What If? Are You A Risk Taker?