Salem City Schools Children First Personal Finance: A ½ Credit Financial Literacy Requirement for Graduation

Graduation Requirement ½ Credit Semester (18 week) course in the Business Department Required beginning with the 2010 Graduating Class Available in 9 th -12 th grade Replaced a local requirement in Computer Literacy

Why a Graduation Requirement? Not all students were receiving adequate instruction on practical financial topics Surveys tell us that 12 th grade students do not possess knowledge on income, credit, taxes, and retirement. Students requested instruction in practical life skills

Why a Graduation Requirement? Young people generally do not receive this information at home Employers report lack of understanding and training on job responsibilities Requirements under SB 950 are spread over way too many classes

Implementation Replaced Computer Literacy as a graduation requirement –A dated requirement of little value for students today, most now exceed basic computer skills in the middle school Requested approval for change from State Board

Implementation Reviewed and modified curriculum for our elective class in Personal Finance –Committee involved math, business, English, and social sciences as well as business community members

Implementation For SY , there are nine sections with 216 students enrolled in the course Students in 10 th -12 th grade are permitted to select either Computer Literacy or Personal Finance to meet the local requirement

Course Content Journey from understanding talent and traits to retirement Stops along the way for taxes, credit, budgeting, job responsibilities, insurance, investments, and more

Resource Materials Numerous Sources: banks, credit unions, governmental agencies, businesses, Better Business Bureau, attorneys, accountants, non-profit organization, and more Members of the Virginia Jump$tart Coalition Speakers from Local Business Community

Barriers Barriers to supporting a graduation requirement in Personal Finance: Time and Money –Do you have a current graduation requirement that is dated and provides little value? –Materials for class are available from numerous sources at little or no cost –Practical application information –Does not require a lot of new money or additional time

Benefits Students develop consumer and financial skills to help them survive “life after graduation” Your parents will love you for it Your business and industry community will love you for it.

Financial Literacy Students scored an average of out of 30 questions The older students tend to have a better financial literacy foundation Some of the students have not been exposed to any of the curriculum Financial math skills are weak

Students Reaction Students are taking the classes for a variety of reasons Most students like the material because it is applicable in everyday life Students like talking about money Students like the hands on experience

Curriculum Devising an investment plan Handling banking transactions Handling credit/loan functions Analyzing insurance functions

Curriculum (cont.) Developing consumer skills Planning for housing, transportation, and leisure expenses Conducting tax functions Preparing a personal financial plan

Classroom Textbooks There are lots of supplementary resources available Guest speakers Hands on real life situations