Things we wish we’d learned in school
Anyone who’s ever struggled with a challenging class in school has likely wondered, "How am I going to use this in real life?"
After graduation, students probably won’t need to recite the periodic table, make a potato battery, or know all 50 U.S. state capitals or 10 Canadian province capitals—unless, of course, you’re a contestant on Jeopardy! But students will need to know how to handle money wisely.
What Is financial literacy?
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing. People with high levels of financial literacy tend to make better financial decisions and are better prepared for retirement. Low financial literacy, on the other hand, tends to lead to high debt and insolvency.
The state of student financial literacy
According to a recent survey conducted by Junior Achievement and Fannie Mae, U.S. teens between the ages of 13 and 17 are interested in owning a home someday but are not sure how they’ll pay for it. The survey reports that 88% of teens would like to own a home, yet less than half (45%) could correctly define a home mortgage, while three-quarters (76%) said they "lacked a clear understanding of credit scores." Almost all (97%) thought it would be helpful if their school provided financial education.
Are schools stepping up to meet the need?
NGPF (Next Gen Personal Finance) reports that eight U.S. states currently require financial education. Seven more are in the process of adding financial education to their curriculums. By any standard, 15 states out of 50 is a failing grade.
Why should credit unions get involved in school financial education?
Credit unions stand to benefit from participating in providing financial education to the schools in their community. In some cases, to a significant degree.
VyStar Credit Union has partnered with 18 schools in North and Central Florida. In each school, VyStar creates a credit union branch and staffs it with student ambassadors, where they receive financial education while developing leadership and community service skills.
To date, 77,000 students have passed through the program and 50 program grads have gone on to become VyStar employees. I had a great conversation with VyStar's Michael Rathjen about VyStar's impressive school branch and financial education program on It's a Money Thing Backstage.
We created It’s a Money Thing to be an entertaining, fully adaptable, hybrid education resource for credit unions and education professionals. For more information and more references to the incredible successes our program has yielded, please get in touch.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.