A Call for Financial Literacy in Schools

Research shows that the majority of Americans have inadequate knowledge about concepts related to personal finance and basic economics. Nationwide, high school students and adults scored, on average, a failing grade for their understanding of basic economics (National Council on Economic Education, 1997). Financial literacy tests administered to high school seniors revealed that a majority failed to comprehend basic financial subjects involving banking products, credit cards, taxes, savings and investment (Mandell, 1998). In addition, financial illiteracy among lower-income consumers has been shown to be a serious issue (Jacob et a., 2000). Given that a high proportion of lower-income consumers are unbanked, there is added concern that these consumers are inadequately prepared (i.e., lack of experience and information about personal finance and consumer education concepts) to make informed financial decisions (Hogarth and O’Donnell, 1997). In an article written by Sara Eisen from Medill Reports, Jean Chatzky, a personal finance guru was quoted saying " Financial literacy is a problem, a big problem, It is imperative that public and private sectors ensure that financial education begins at home and moves into the homerooms."

Making a Case for Credit Education & Financial Literacy

Financial Literacy Education:

v38 states have personal finance standards or guidelines.

v21 states with standards requiring them to be implemented.

v8 states require a course with personal finance content.

v7 states require students to take a personal finance course to graduate.