Personal Finance: A Local Graduation Requirement


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Personal Finance: A Local Graduation Requirement

  1. 1. The Case for Financial Literacy as a Priority for Every Student
  2. 3. Jumpstart Coalition 2006 Survey of High School Students <ul><li>Average score for Virginia students on the Jumpstart Coalition Survey of Financial Literacy is 55%. </li></ul><ul><li>Only 5.2% of Virginia students scored a C or better on the Jumpstart Coalition Survey of Financial Literacy. </li></ul><ul><li>Conversely, 94% of Virginia students achieved a score of D or lower on the 2006 Jumpstart Coalition Survey of Financial Literacy. </li></ul>
  3. 4. Visa 2005 Survey of High School Parents <ul><li>74% of parents ranked developing good personal financial skills as a concern for their children’s futures. </li></ul><ul><li>70% of parents surveyed said their child has not had any formal training in money management. </li></ul><ul><li>76% said that schools should be required to teach money management skills. </li></ul>
  4. 5. Capital One 2006 Back-to-School Survey <ul><li>49% of teens are eager to learn more about money management </li></ul><ul><li>Only 43% of parents have discussed the importance of needs versus wants </li></ul><ul><li>42% of parents have not taken any steps whatsoever to discuss financial basics with their children. </li></ul>
  5. 6. Hartford Financial Services 2007 Survey of College Students <ul><li>Less than one-quarter of students say they are prepared to deal with financial challenges after graduation. </li></ul><ul><li>76% wish they had more help preparing for their financial future </li></ul><ul><li>Half of students surveyed say that parents teach them about financial matters. </li></ul>
  6. 7. Additional Compelling Statistics <ul><li>75% of students admit to making financial mistakes in college </li></ul><ul><li>52% of Americans do not review their credit report yearly </li></ul><ul><li>36% of Americans do not have a budget </li></ul><ul><li>63% of college students acquired a credit card before the age of 19. </li></ul><ul><li>53% of college students who have a credit card say that they did not receive appropriate education on the use of a credit card </li></ul>
  7. 8. Debt in America <ul><li>Sallie Mae found that more than half of college students accumulated more than $5,000 in credit card debt while in school. </li></ul><ul><li>One-third piled on more than $10,000 in credit card debt while in school. </li></ul><ul><li>US Consumers received 8 billion direct mail credit card solicitations in 2006. </li></ul>
  8. 9. What’s the answer? Financial Literacy Education for every child! <ul><li>Focused Instruction in Financial Literacy </li></ul><ul><li>Direct instruction to cover financial literacy objectives </li></ul><ul><li>A comprehensive course on financial literacy! </li></ul>
  9. 10. Virginia Requirements <ul><li>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.” </li></ul><ul><li>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. </li></ul>
  10. 11. Current Plan <ul><li>The current plan outlines 15 objectives from five categories connected to standards in as many as 60 classes in grades 6-12. </li></ul><ul><li>Students’ primary exposure to financial literacy objectives is through math 6-8 and Government, a span of 6 years of their education. </li></ul>
  11. 12. Current Plan <ul><li>Financial Literacy objectives are covered only in as much as the objective relates to the primary objective of the course. </li></ul><ul><li>Financial literacy objectives are not the focus of the instruction. </li></ul>
  12. 13. Salem City Schools Personal Finance Curriculum <ul><li>Investments </li></ul><ul><li>Banking </li></ul><ul><li>Credit </li></ul><ul><li>Savings </li></ul><ul><li>Consumer skills </li></ul>
  13. 14. Curriculum (cont.) <ul><li>Insurance </li></ul><ul><li>Taxes </li></ul><ul><li>Buying a house and car </li></ul><ul><li>Budgeting </li></ul><ul><li>For complete curriculum go to </li></ul>
  14. 15. Observations <ul><li>Students take course for a variety of reasons </li></ul><ul><li>Wide variety of students </li></ul><ul><li>Students like it because it is relevant </li></ul><ul><li>Students like to talk about money </li></ul>
  15. 16. Observations <ul><li>Ask a lot of questions </li></ul><ul><li>Course reinforces math skills </li></ul><ul><li>THERE IS A BIG NEED FOR PERSONAL FINANCE! </li></ul>
  16. 17. Materials Available <ul><li>Websites </li></ul><ul><li>Guest speakers </li></ul><ul><li>Junior Achievement </li></ul><ul><li>Simulations </li></ul>
  17. 18. Materials Available (cont.) <ul><li>Jumpstart coalition </li></ul><ul><li>No textbook is needed </li></ul><ul><li>The hardest part is figuring out what materials to use </li></ul>
  18. 19. Teacher Training <ul><li>Anyone licensed in business can teach the course </li></ul><ul><li>Very basic concepts </li></ul><ul><li>Does not go into a lot of detail </li></ul><ul><li>Teaching about things you experience everyday </li></ul>
  19. 20. Results <ul><li>Students scored an average of 58% on a pre-test </li></ul><ul><li>Students scored an average of 88% on a post-test </li></ul><ul><li>Juniors and Seniors scored above the 88% </li></ul>
  20. 21. Results <ul><li>Students are asking their parents questions about financial topics </li></ul><ul><li>Never met a parent who did not think it was a great idea </li></ul><ul><li>1 st place in the SMG in the Radford Region </li></ul><ul><li>Graduates will provide more info in the future </li></ul>
  21. 22. Results <ul><li>Here is what the students are saying: </li></ul>
  22. 23. Here is what the students are saying
  23. 24. Here is what the students are saying
  24. 25. Resources <ul><li>No Textbook Necessary! </li></ul><ul><li>Abundant Materials available online at no charge </li></ul><ul><li>Jump$tart Coalition Clearinghouse includes 312 Publications </li></ul>
  25. 26. Resources <ul><li>Jump$tart Coalition Members and Local Businesses are great sources of information and materials </li></ul><ul><li>Virginia Tech Assistant Professor: </li></ul><ul><ul><ul><li>Cecia Ray Hayhoe, PH.D. </li></ul></ul></ul><ul><ul><ul><li>(540) 231-3497 </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul>
  26. 27. Resources: Time is Money <ul><li>Look first at your Business Department and evaluate current requirements and course offerings </li></ul><ul><li>Consider re-allocation of Business Teacher course assignments from potentially outdated Intro. to Computers courses to Personal Finance </li></ul>
  27. 28. Resources: Time is Money <ul><li>VA DOE also has a course code for Social Studies Teachers who may already be teaching local electives in Economics </li></ul><ul><li>Teacher Training is available FREE from Jump$tart Coalition Members </li></ul>
  28. 29. The Problem <ul><li>Students need to be financially literate to function in a global economy. </li></ul><ul><li>Parents and students report that they do not have the financial skills they will need. </li></ul><ul><li>Debt and foreclosure rates are at historically high levels. </li></ul><ul><li>Savings and rates are at historically low levels. </li></ul>
  29. 30. Current Reality <ul><li>Financial literacy objectives are assigned to a variety of middle and high school courses. </li></ul><ul><li>Financial Literacy objectives are covered in regards to their relationship to designated course objectives. </li></ul><ul><li>Financial Literacy objectives are not the focus of instruction. </li></ul>
  30. 31. The Solution <ul><li>Teach financial literacy objectives in a comprehensive course. </li></ul><ul><li>Make financial literacy objectives the focus of instruction. </li></ul><ul><li>Ensure that every child receives the financial education they need in order to be a contributing member of society. </li></ul><ul><li>Require a course in Personal Finance for every student in your school division. </li></ul>
  31. 32. <ul><li>You know they need it </li></ul><ul><li>and </li></ul><ul><li>they deserve it from you!!! </li></ul>
  32. 33. Contacts <ul><li>H. Alan Seibert, Ed. D. Kevin Garst </li></ul><ul><li>Division Superintendent Personal Finance Instructor </li></ul><ul><li>Salem City Schools Salem High School </li></ul><ul><li>510 South College Avenue 400 Spartan Drive </li></ul><ul><li>Salem, VA 24153 Salem, VA 24153 </li></ul><ul><li>Telephone: (540)389-8406 Telephone: (540)389-2437 </li></ul><ul><li>[email_address] [email_address] </li></ul><ul><li>Curtis Hicks Wayne Adkins </li></ul><ul><li>Director of Secondary Instruction Vice Chairman </li></ul><ul><li>Salem City Schools Salem City School Board </li></ul><ul><li>510 South College Avenue 510 South College Avenue </li></ul><ul><li>Salem, VA 24153 Salem, VA 24153 </li></ul><ul><li>Telephone: (540)389-0130 Telephone: (540)353-5370 </li></ul><ul><li>[email_address] [email_address] </li></ul>