The Case for Financial Literacy as a Priority for Every Student

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The Case for Financial Literacy as a Priority
for Every Student
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(No Transcript)
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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.

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Visa 2005 Survey of High School Parents

• 74 of parents ranked developing good personal
  financial skills as a concern for their
  childrens 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.

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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.

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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.

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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

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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.

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Whats 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!

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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.

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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.

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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.

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Salem City SchoolsPersonal Finance Curriculum

• Investments
• Banking
• Credit
• Savings
• Consumer skills

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Curriculum (cont.)

• Insurance
• Taxes
• Buying a house and car
• Budgeting
• For complete curriculum go to www.salem.k12.va.us

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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

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Observations

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

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Materials Available

• Websites
• Guest speakers
• Junior Achievement
• Simulations

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Materials Available (cont.)

• Jumpstart coalition
• No textbook is needed
• The hardest part is figuring out what materials
  to use

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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

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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

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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

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Results

• Here is what the students are saying

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Here is what the students are saying
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Here is what the students are saying
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Resources

• No Textbook Necessary!
• Abundant Materials available online at no charge
• Jumptart Coalition Clearinghouse includes 312
  Publications

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Resources

• Jumptart Coalition Members and Local Businesses
  are great sources of information and materials
• Virginia Tech Assistant Professor
• Cecia Ray Hayhoe, PH.D.
• [phone]
• chayhoe_at_vt.edu

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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

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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 Jumptart
  Coalition Members

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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.

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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.

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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.

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• You know they need it
• and
• they deserve it from you!!!

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Contacts

• H. Alan Seibert, Ed. D. Kevin Garst
• Division Superintendent Personal Finance
  Instructor
• Salem City Schools Salem High School
• 510 South College Avenue 400 Spartan Drive
• Salem, VA 24153 Salem, VA 24153
• Telephone [phone] Telephone
  [phone]
• aseibert_at_salem.k12.va.us kgarst_at_salem.k12.va.us
• Curtis Hicks
  Wayne Adkins
• Director of Secondary Instruction Vice Chairman
• Salem City Schools Salem City School Board
• 510 South College Avenue 510 South College
  Avenue
• Salem, VA 24153 Salem, VA 24153
• Telephone [phone] Telephone
  [phone]
• chicks_at_salem.k12.va.us wadkins_at_salem.k12.va.us