the case for financial literacy as a priority for every student

The Case for Financial Literacy

as a Priority for Every Student

Jumpstart Coalition 2006 Survey of High School Students

• Average score for Virginia students on the Jumpstart Coalition Survey of Financial Literacy is 55%.

• Only 5.2% of Virginia students scored a C or better on the Jumpstart Coalition Survey of Financial Literacy.

• Conversely, 94% of Virginia students achieved a score of D or lower on the 2006 Jumpstart Coalition Survey of Financial Literacy.

Visa 2005 Survey of High School Parents

• 74% of parents ranked developing good personal financial skills as a concern for their children’s futures.

• 70% of parents surveyed said their child has not had any formal training in money management.

• 76% said that schools should be required to teach money management skills.

Capital One 2006 Back-to-School Survey

• 49% of teens are eager to learn more about money management

• Only 43% of parents have discussed the importance of needs versus wants

• 42% of parents have not taken any steps whatsoever to discuss financial basics with their children.

Hartford Financial Services 2007 Survey of College Students

• Less than one-quarter of students say they are prepared to deal with financial challenges after graduation.

• 76% wish they had more help preparing for their financial future

• Half of students surveyed say that parents teach them about financial matters.

Additional Compelling Statistics• 75% of students admit to making

financial mistakes in college

• 52% of Americans do not review their credit report yearly

• 36% of Americans do not have a budget

• 63% of college students acquired a credit card before the age of 19.

• 53% of college students who have a credit card say that they did not receive appropriate education on the use of a credit card

Debt in America

• Sallie Mae found that more than half of college students accumulated more than $5,000 in credit card debt while in school.

• One-third piled on more than $10,000 in credit card debt while in school.

• US Consumers received 8 billion direct mail credit card solicitations in 2006.

What’s the answer? Financial Literacy Education for every

child!

• Focused Instruction in Financial Literacy

• Direct instruction to cover financial literacy objectives

• A comprehensive course on financial literacy!

Virginia Requirements

• On March 26, 2005, the General Assembly approved SB 950, a bill directing the Virginia Board of Education to “establish objectives for economic education and financial literacy.”

• By July 1, 2006, the Board of Education developed and approved objectives for economics education and financial literacy at the middle and high school levels required of all students.

Current Plan

• The current plan outlines 15 objectives from five categories connected to standards in as many as 60 classes in grades 6-12.

• Students’ primary exposure to financial literacy objectives is through math 6-8 and Government, a span of 6 years of their education.

Current Plan

• Financial Literacy objectives are covered only in as much as the objective relates to the primary objective of the course.

• Financial literacy objectives are not the focus of the instruction.

Salem City SchoolsPersonal Finance Curriculum

• Investments• Banking• Credit• Savings• Consumer skills

Curriculum (cont.)

• Insurance • Taxes• Buying a house and car• Budgeting• For complete curriculum go to

www.salem.k12.va.us

Observations• Students take course for a variety of

reasons• Wide variety of students• Students like it because it is relevant• Students like to talk about money

Observations• Ask a lot of questions• Course reinforces math skills• THERE IS A BIG NEED FOR PERSONAL

FINANCE!

Materials Available• Websites• Guest speakers• Junior Achievement • Simulations

Materials Available (cont.)• Jumpstart coalition• No textbook is needed• The hardest part is figuring out what

materials to use

Teacher Training• Anyone licensed in business can

teach the course• Very basic concepts• Does not go into a lot of detail• Teaching about things you

experience everyday

Results• Students scored an average of 58%

on a pre-test• Students scored an average of 88%

on a post-test• Juniors and Seniors scored above the

88%

Results• Students are asking their parents

questions about financial topics• Never met a parent who did not think

it was a great idea• 1st place in the SMG in the Radford

Region• Graduates will provide more info in

the future

Results • Here is what the

students are saying:

Here is what the students are saying

Here is what the students are saying

Resources• No Textbook Necessary!• Abundant Materials available online

at no charge• Jump$tart Coalition Clearinghouse

includes 312 Publications

Resources• Jump$tart Coalition Members and

Local Businesses are great sources of information and materials

• Virginia Tech Assistant Professor:Cecia Ray Hayhoe, PH.D.(540) 231-3497chayhoe@vt.edu

Resources: Time is Money• Look first at your Business

Department and evaluate current requirements and course offerings

• Consider re-allocation of Business Teacher course assignments from potentially outdated Intro. to Computers courses to Personal Finance

Resources: Time is Money• VA DOE also has a course code for

Social Studies Teachers who may already be teaching local electives in Economics

• Teacher Training is available FREE from Jump$tart Coalition Members

The Problem• Students need to be financially literate to

function in a global economy.

• Parents and students report that they do not have the financial skills they will need.

• Debt and foreclosure rates are at historically high levels.

• Savings and rates are at historically low levels.

Current Reality

• Financial literacy objectives are assigned to a variety of middle and high school courses.

• Financial Literacy objectives are covered in regards to their relationship to designated course objectives.

• Financial Literacy objectives are not the focus of instruction.

The Solution

• Teach financial literacy objectives in a comprehensive course.

• Make financial literacy objectives the focus of instruction.

• Ensure that every child receives the financial education they need in order to be a contributing member of society.

• Require a course in Personal Finance for every student in your school division.

You know they need itand

they deserve it from you!!!

ContactsH. Alan Seibert, Ed. D. Kevin GarstDivision Superintendent Personal Finance InstructorSalem City Schools Salem High School510 South College Avenue 400 Spartan DriveSalem, VA 24153 Salem, VA 24153Telephone: (540)389-8406 Telephone: (540)389-2437aseibert@salem.k12.va.us kgarst@salem.k12.va.us

Curtis Hicks Wayne Adkins Director of Secondary Instruction Vice ChairmanSalem City Schools Salem City School Board510 South College Avenue 510 South College AvenueSalem, VA 24153 Salem, VA 24153Telephone: (540)389-0130 Telephone: (540)353-5370chicks@salem.k12.va.us wadkins@salem.k12.va.us