Reading, Writing and Financial Education?

In response to the financial downturn, high schools around the country are adding financial literacy to their curriculum. Some schools are offering the financial literacy class as an elective. Others are making it a graduation requirement. New Jersey is the newest state to join Utah, Missouri and Tennessee in requiring high school-ers to take a financial literacy course. Some individual school districts, like the Chicago Public Schools, are making the decision without a mandate from the state.

The recent trend to make financial education part of the core curriculum in public schools reminds me of a New America event held last year, “The Effectiveness of Youth Financial Education.” Experts stressed the importance of linking financial education to real-world financial activity, such as a savings account or visits to a bank. Being able to see how savings grow in a real account engages kids’ interest in personal finance and motivates them to learn and retain financial principles.

For kids from higher income families who have the resources to open a bank account on their own, financial education in school would be immediately relevant and helpful. For kids from lower income families without the resources or access to a bank account, financial education in school may seem unimportant. The ASPIRE Act, which would create a Lifetime Savings Account at birth for every child in America, could help even the playing field and ensure that schools’ efforts to teach financial literacy are maximized for children from all families.