High school financial education gets an F
How credit unions can earn an A+
Photo by Pixabay
In today's modern economy, possessing financial literacy is essential for every individual. While the education systems in the United States and Canada focus on developing literacy, math, and science skills among children and teenagers, financial education often falls short.
With only 22 U.S. states and 7 Canadian provinces currently requiring financial education in high schools, the existing intent of financial education legislation in North America is far from achieving its goals. Even among the states and provinces that guarantee a financial education, only a few offer it as a standalone course. Many states and provinces simply integrate financial literacy into other subjects or offer it as an optional elective, resulting in inconsistent and insufficient coverage. The limited amount of financial literacy education students eventually receive falls short of what they need.
Percent of high school students guaranteed to take a personal finance course by U.S. state
Photo by NGPF
Taking action
If financial education is going to improve, credit unions, with their unique position in the community, can play a vital role in addressing this gap.
Research conducted by the Global Financial Literacy Excellence Center (GFLEC) consistently shows that high school personal finance programs have a positive impact on students' financial decisions, credit scores, and savings habits. These programs provide essential skills such as budgeting, using credit cards, investing and obtaining loans, which are crucial for future financial well-being.
Students recognize the practical value of financial education, as it equips them with skills they will use throughout their lives. One student aptly commented that learning about money is important in preparing for the future. And according to a survey of 6,000 youth conducted by Canada’s Foundation for Economic Education (CFEE) the top 12 topics teens want to learn about are:
Best ways to prepare for earning money and getting a good job and career
Making good spending decisions
Ways and means to save money
How to plan for my future education – and be able to pay for it
Taxes and how to file taxes
Investing money – ways to invest, types of investments, and possible risks and returns
Moving out – the costs and potential challenges when you leave home
How to avoid frauds and scams
Making larger purchases – such as a computer, car, or home
Budgeting money
Understanding how student loans work
Credit cards – how they work and how to pick the right one
Natural partners
Credit unions are uniquely positioned to step in and address the financial education gap. They have deep roots in their communities and a strong commitment to community empowerment. Supporting and sustaining community organizations is ingrained in their DNA, and drives many of their decision-making processes. Further, credit unions allocate a portion of their marketing budget towards community initiatives, and financial education can be viewed as a strategic marketing expenditure with a high return on investment.
Credit unions can collaborate with schools to offer free financial education curricula, benefiting both the credit unions and the students. By engaging with thousands of potential new members, credit unions can strengthen their community relationships and establish themselves as trusted financial partners.
Organizations like Currency Marketing, with professionally developed programs, such as It's a Money Thing, can provide credit unions with ready-to-deploy financial literacy programs that set them apart from others in the field. These programs offer credit unions the opportunity to make a significant impact within high schools in their communities while also attracting new members.
Would you like to learn more?
If you’re interested in learning more about It’s a Money Thing, we’d love to talk and connect you with some of our credit union partners who’ve taken their local high school financial education programs to an A+.
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.
