By Laura Edmonston
Headlines concerning financial literacy over the past several years have been pretty grim: failing grades, declining savings and mounting debt. That’s not surprising. In 2011, the Council for Economic Education’s Survey of the States reported that only 13 states required personal finance to graduate and only 14 states required at least one personal finance class to be taught. And while 46 states included personal finance in their K-12 standards, only five required student testing.
There is some developing good news in that more states and school districts are starting to respond. But the good news comes with a caveat—and a great opportunity for credit unions.
In 2014, the CEE’s Survey of the States shows the number of states that require personal finance to graduate has jumped to 17, and 19 states now require that a personal finance course be taught. The number of states requiring student testing has also increased, albeit it’s still a low number, at six. In March, the President’s Advisory Council on Financial Capability for Young Americans held their first meeting.
Many students still don’t know what they don’t know, and that lack of financial education could haunt them throughout their lives, as credit unions see everyday when they sit down with some members. But those who have been educated know there are benefits in being money-savvy, especially as they prepare to set out on their own after graduation. Speaking about a business class he took his sophomore year, a high school student told USA Today, “Everything in here is real-life applicable. At first I was like, man, another requirement. But in the end, it was definitely worth it.”
So what’s the real problem? The reason for a lack of the personal finance requirement is often that states and school districts simply lack the funding or personnel to implement classes.
This is a perfect place for your credit union to get involved. Provide the materials, volunteer in the classroom; bring real-world knowledge to young adults that want it. These steps don’t just benefit these students. Getting involved in local schools is a great way to build your brand with a younger demographic while also providing important financial education to students who need it, and there are plenty of ways to get involved.
Among those ways are partnerships that can bring numerous benefits to the students, local businesses and the credit union itself. Click here for some case studies and examples.
Laura Edmonston is director of education with brass Media in Corvallis, Ore. Ms. Edmonston can be reached at lauraedmonston@brassmedia.com.