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Teaching Financial Literacy in High School


Published on

Brian Nelson
Business Department Chair
Arvin High School
Bakersfield, CA

Presentation will discuss teaching high school students how to manage their finances, a skill rarely taught in school yet all of us need to use in the "real world." In light of the current financial crisis, the need to teach students personal finance could not be more relevant.

Teaching Financial Literacy in High School

  1. 1. Brian Nelson Arvin High School
  2. 2. <ul><li>Federal Reserve Board Chairman Ben Bernanke speech link </li></ul><ul><li>The current financial crisis as it relates personal finance </li></ul><ul><li>Jump$tart Coalition National K-12 Standards for Personal Finance </li></ul><ul><ul><li>20 pages long! </li></ul></ul><ul><ul><li>Glossary of financial terms </li></ul></ul>
  3. 3. <ul><li>Rule #1 Never spend more than you make or “live below your means” </li></ul><ul><li>Save at least 10% of income for long-term savings </li></ul><ul><li>Invest in the worldwide economy </li></ul><ul><li>Establish an emergency fund (3-6 months of monthly expenses) for unforeseen expenses </li></ul><ul><li>Insure your assets, especially your health </li></ul>
  4. 4. <ul><li>Financing college or vocational training </li></ul><ul><ul><li>Free Application for Federal Student Aid ( Fafsa ) </li></ul></ul><ul><ul><li>Applying for scholarships </li></ul></ul><ul><li>Choosing your career carefully </li></ul><ul><li>Establishing checking and savings accounts </li></ul><ul><ul><li>Washington Mutual , Charles Schwab </li></ul></ul><ul><li>Establishing credit and your credit report </li></ul><ul><ul><li> </li></ul></ul><ul><li>The perils of credit cards…”El Diablo!” </li></ul>
  5. 5. <ul><li>Health Insurance for Students </li></ul><ul><ul><li>Major medical-Need $3-5 million in coverage </li></ul></ul><ul><ul><li>On campus student health centers </li></ul></ul><ul><li>Purchasing a car, auto insurance </li></ul><ul><li>Minimizing expenses in college </li></ul><ul><li>Renting an apartment </li></ul><ul><li>Retirement Plans </li></ul><ul><ul><li>Traditional Pensions </li></ul></ul><ul><ul><li>Roth IRA’s 401k’s, Mutual Funds </li></ul></ul><ul><li>Taxes, Purchasing a Home </li></ul>
  6. 6. <ul><li>Kiplinger Magazine </li></ul><ul><ul><li>“ Starting Out ” </li></ul></ul><ul><ul><li>Erin Burt </li></ul></ul><ul><ul><li>Kiplinger Quizzes </li></ul></ul><ul><ul><li>Best of List </li></ul></ul><ul><li>Kiplinger magazine is hands down the best online personal finance magazine </li></ul><ul><ul><li>Search any financial topic within the website </li></ul></ul><ul><li>Students write reviews of personal finance articles on a daily basis </li></ul>
  7. 7. <ul><li>Investing Classroom </li></ul><ul><ul><li>172 lessons about the capital markets </li></ul></ul><ul><ul><ul><li>Stocks </li></ul></ul></ul><ul><ul><ul><li>Bonds </li></ul></ul></ul><ul><ul><ul><li>Mutual funds </li></ul></ul></ul><ul><ul><ul><li>Portfolios (asset allocation) </li></ul></ul></ul><ul><ul><li>Quizzes at the end of each chapter if registered at site (free of charge) </li></ul></ul><ul><li>Curriculum runs from very basic to MBA level </li></ul>
  8. 8. <ul><li>“ Instant X-ray ” </li></ul><ul><ul><li>This tool from Morningstar will diagnose any portfolio and display its asset allocation or mix of investments </li></ul></ul><ul><ul><li>A VERY valuable tool that is free of charge </li></ul></ul><ul><li>Graphical results of asset allocation </li></ul><ul><ul><li>Expenses </li></ul></ul><ul><ul><li>Industry mix </li></ul></ul><ul><ul><li>Much more portfolio data </li></ul></ul>
  9. 9. <ul><li>Worldwide Business News </li></ul><ul><ul><li>Current events </li></ul></ul><ul><ul><li>More than just business news </li></ul></ul><ul><ul><li>Much content is free </li></ul></ul><ul><li>Personal Finance Section of WSJ </li></ul><ul><ul><li>“ Yoder & Son ” column- A WSJ columnist and his son discuss personal finances, very relevant to high school students </li></ul></ul><ul><li>The Wall Street Journal Classroom Edition </li></ul><ul><ul><li>Geared toward high school students </li></ul></ul><ul><ul><li>College and Careers, Personal finance, Technology </li></ul></ul><ul><ul><li>Most content is free </li></ul></ul>
  10. 10. <ul><li>Math that matters…The miracle of compounding interest </li></ul><ul><li>Rarely taught in school </li></ul><ul><li>The rule of 72 </li></ul><ul><ul><li>Divide a rate of return into 72 to find out how long it takes a lump sum to double </li></ul></ul><ul><li>Online personal finance calculators </li></ul><ul><li>Microsoft Excel’s Future Value (FV) function </li></ul><ul><ul><li>Students also use excel to create personal financial statements-Balance Sheet & Income Statement </li></ul></ul>
  11. 11. <ul><li>The Stock Market Game </li></ul><ul><ul><li>Students teams manage a hypothetical $100,000 portfolio and compete against other teams in California </li></ul></ul><ul><ul><li>Game operates like an actual brokerage account </li></ul></ul><ul><ul><li>Student learn about the capital markets and how to research investments. </li></ul></ul><ul><ul><li>Students certainly learned about the riskiness of stocks in the short term in the last game! </li></ul></ul><ul><li>“ Financial Football ” from </li></ul>
  12. 12. <ul><li>Online quiz sponsored by the U.S. Treasury Department to promote financial literacy among high school students </li></ul><ul><li>35 multiple choice questions </li></ul><ul><li>$1000 college scholarships awarded to students from Charles Schwab if all questions were answered correctly! </li></ul><ul><li>Certificates and medals awarded to top performing students </li></ul>
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  15. 15. [email_address] Email: Thank you!