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 % 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 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 Schools Personal Finance Curriculum Investments Banking Credit Savings Consumer skills

Curriculum (cont.) Insurance Taxes Buying a house and car Budgeting For complete curriculum go to

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 1 st 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

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)

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 it and they deserve it from you!!!

Contacts H. Alan Seibert, Ed. D.Kevin Garst Division SuperintendentPersonal Finance Instructor Salem City SchoolsSalem High School 510 South College Avenue400 Spartan DriveSalem, VA Telephone: (540) Telephone: (540) Curtis Hicks Wayne Adkins Director of Secondary InstructionVice Chairman Salem City SchoolsSalem City School Board510 South College AvenueSalem, VA Telephone: (540) Telephone: (540)