Personal Financial Literacy (PFL) What’s it all about?
A Call for Action • National Association of State Board of Education • North Carolina Department of the State Treasurer • The North Carolina General Assembly • The North Carolina Department of Public Instruction
“The U.S. economy is the eighth wonder of the world. Americans’ ignorance of it is the ninth.” Arthur Levitt Former Chairman, New York Stock Exchange
Today’s Teens… • Fewer than half of teenagers polled understood how to budget • Entering college freshmen have an average debt of $1.500 on personal credit cards. • The average credit card debt for college seniors is $2,864; a 48% increase from freshmen
Today’s Teens… • The average debt of graduating college seniors including student loans is $20,000. • Americans under age 25 are filing for bankruptcy faster than any other age group.
The News… • Personal Financial Literacy is now a requirement in North Carolina • Multiple curricula will reflect changes in their NC Standard Course of Study • A series of regional workshops are designed for training
Support staff includes national partners, local experts and NCDPI Social Studies Consultants • Multiple resources and materials are available for instruction
NC Legislation • SB 622 (2005) Teaching of Personal Finances in Schools • HB 1473 (2007) Appropriations Act for teaching PFL in Civics and Economics • HB 1474 (2009) Each student shall receive personal financial literacy instruction that include credit, managing a credit card, borrowing money for large purchases, and credit scores and reports • SB 1019 (2009) The establishment of a Financial Literacy Council to coordinate and expand the statewide delivery of financial education
PFL legislation… • How will it affect • Social Studies Teachers • Students
PFL… • Civics & Economics courses will include modules of instruction in • Credit • Savings • Investing • Checking • A pre- and post- survey of Personal Financial Literacy
Why Civics & Economics? • It is a required course - all students take it • PFL should begin early in the HS career • Teens purchase • Teens have charge cards • Teens begin to work by 10th grade • Additional courses are available in other content areas
Our Resources…2005-’06 • Personal Financial Literacy Documents • Elementary • Middle • Secondary • Supplemental Secondary Resource Document
Section I - Economic Basics The Four Factors of Production and their Rewards Candy Bar Economics Section II - Taxing and Spending Local Taxes: Where Does All The Money Go? State Taxes: Why Do We Pay the State? Economic Investment in a Community: A Case Study Is There Such a Thing as a Good Tax? Section III - Money Management Dream Life Family Financial Project Section IV - Savings and Investment Investment: Does Money Grow? Section V – Credit Credit: Friend or Foe? Read the Fine Print Section VI – Insurance Insuring Against Risk Insurance: Do We Need It? Section VII – Banking Banks and Consumer Services No Rubber Checks Additional Resources PERSONAL FINANCIAL LITERACY: ACTIVITIES AND TEACHING STRATEGIES FOR SECONDARY SOCIAL STUDIES
Our Partners…SECU • Provide training to teachers • Provide resource materials • Provide human resources • Are local (over 277 locations throughout NC) • Services and materials are free
Local Partners… • CPA’s • Certified Financial Planners (CFP’s) & Financial Advisors • Insurance Agents • Banks & Credit Unions • Junior Achievement • Non-Profit Agencies • Other Government Agencies - HUD, Social Security Administration, Dept of Labor etc. • Retired Professionals
My Financial Literacy… • Budget Busters • What If? • Are You A Risk Taker?