Monfredo: Financial Literacy Course Could Benefit High School Students

Saturday, August 03, 2019

John Monfredo, GoLocalWorcester MINDSETTER

Teaching financial literacy in high schools is another positive and meaningful course offered by the Worcester Public Schools. The course is being offered in all of the district’s comprehensive high schools.

This course could be a “game-changer” for students as they move forward toward college and a career. Many students sometimes ask, “Will this course be of any value to me after I graduate.” As a Dad, my answer would be YES for the sooner students learn how to handle money and make good financial decisions the better off they are!

The course in financial literacy, according to what I read, teaches students to build money habits early on and avoid many of the mistakes that lead to financial struggles. We are all aware that many individuals have problems with their money … living pay check to pay check, having credit card debt and some given coming into bankruptcy. Perhaps problems with money could be avoided if students are taught early on how to save and make good decisions.

As one Dad, said to me, “I wish my children had taken a course in financial literacy and learned how to handle money. It would have saved me from dipping into my savings account to bail them out. “ So true, now think about the jump-start your children could profit if they were already in the habit of budgeting, saving regularly, spending wisely and putting savings first.

According to a survey conducted by Ramsey Research, there were many positives taken by students who had taken a course in financial literacy. The survey measured students understanding of several financial topics ranging from basic, such as the difference between debit and credit card, to more complete concepts, like income taxes, insurance, student loans an 401(k)s. Students who had taken a course in financial literacy scored higher in every topic than students who had not taken such a course but they also scored extremely high in each category… for example:

86% reported a complete understanding of the difference between a debit card and a credit card.
87% said they understand how to pay income taxes
90% said they understand how home, auto, and life insurance work.

In addition, students with a personal finance education also show a solid ability to prioritize choices based on necessity and security rather than luxury. For example, as the survey states, “student who have completed the course were more than three times likely to say they’d rather have $500 in the bank instead of a Smartphone.”

It is important that children learn the life skill of how to save money. They need to learn, as the financial experts call it “paying yourself first.” That means taking a percentage from each paycheck earned, put it in a separate account and pretend it doesn’t exist.

I’m sure that many readers are shaking their heads and saying “you’re right” and I wish the course was available when my children were at school. Others are saying let me call the schools and find out more about the course and get my child into the program. If so, get on it now!