Making Personal Finance A Graduation Requirement
Why Make Personal Finance a Graduation Requirement • The aspects of personal finance are much more complicated than at any time in the past. • The consequences of being financially illiterate can impact our students for a lifetime. • There are new and sophisticated predatory lending practices that are legal and can be financially devastating. • The Goal of K-12 Education should be to prepare students for life after high school. Financial planning is a large part of that. • We owe it to our kids.
Personal Finance as Graduation Requirement From the Center for Financial Literacy 36 States received a grade of C or above for requiring some sort of Personal Finance class. 11 States received a grade of F. California is one of those. Requiring a Personal Finance class as a graduation requirement is within the authority of local Board of Education. California has been considering making Personal Finance a requirement. In 2012, the Programme for International Student Assessment added financial literacy to the list of topics that are tested.
What a Personal Finance Class Might Include The Four Basic Aspects of Personal Finance • Earning • Spending • Saving • Borrowing
How a Personal Finance Class Might be Offered A minimum of 1 quarter of instruction • A stand alone class offered during the year • Built within another program • A shorter more intense course offered during school breaks • An online offering
How a Personal Finance Requirement Might be Implemented Just Do It! • There are a myriad of resources currently available including complete programs. • In year 1, make Personal Finance classes available and recommended. • Years 2 and beyond, make the classes mandatory for graduation.
Potential Problems in Making Personal Finance a Requirement Paralysis by Analysis Fear of Change Indecision Every year we wait to implement a requirement, we miss the chance of educating hundreds of students and send them out into the world unprepared to meet the financial decisions and challenges they will face.
What a Personal Finance Requirement Might Cost The Investment Could/Should Be Minimal • Ample materials are available online. No textbook is needed. • Major expense is teacher time for presentation, training, and preparation. • We need to search for sponsors to support the programs.
What’s The Next Step? Give the Superintendent direction to pursue establishing a course in Personal Finance as a graduation requirement and return to the Board with a concept for implementation as either a report or an action item.