Students build financial literacy
Don Long / Times-Dispatch
Louisa High School is home to the recently opened Lion Nation branch of the University of Vriginia Community Credit Union.
When she was younger, Kelley Shuler thought money she deposited in the bank was kept in a small safe just for her, only to be opened when she needed to withdraw.
As she matured, so did her understanding of how banks work.
With the help of the University of Virginia Community Credit Union, which recently opened a student-run branch in Louisa County High School, which Shuler attends, she avoids debt by spending only what she makes -- a lesson some adults could use.
Shuler, 17, is taking steps to help fellow students graduate with sound financial basics, and state educators are, too.
The Virginia Board of Education is considering requiring a financial-literacy course for high school students in order to graduate with an advanced-studies diploma.
Many school districts have already done the math on the benefits of sending financially savvy students off to college, when all of the tantalizing credit card offers come along. Deep Run High School in Henrico County also has opened a student-run credit union branch at the school.
Some schools weave financial lessons into other classes. Chesterfield County schools, for example, teach the material in high school government classes.
If the state Board of Education approves the proposed requirement to mandate a course in economics or personal finance, then Standards of Learning would be developed outlining what specifically should be covered.
Members of the financial-services industry applaud the state's effort but stress the connection between economics and personal finance and recommend that the two disciplines be thought of together.
"Personal finance makes economic principles real," said Glenn Birch, public and media relations director for the Virginia Credit Union.
"And the economic principles upon which personal finance is based reinforce a student's understanding of related disciplines, such as government, history and math. Linking the two makes for good citizens, more informed voters, wiser consumers and more empowered participants in our democracy," Birch told Board of Education members in late October at a public hearing about the proposed change.
The 2005 General Assembly directed the Board of Education to establish objectives for economic education and financial literacy for middle and high school levels. In April 2006, the board adopted goals that fall in line with existing math and government Standards of Learning and careerand technical-education competencies.
Sarah Hopkins Finley, executive director of the nonprofit Virginia Council on Economic Education, also argues that students need both economic and personal-finance concepts "to understand how our economy works, what that means for us as individuals so we position ourselves to be successful in our global economy."
"That includes what type of education and training we need so that we'll be marketable," she added. "Also, economics in general is about scarcity -- that our resources are limited so we have to make choices, whether those resources are money or time or trees or water."
The course requirement is being considered as one of several changes to the Standards of Accreditation. The Board of Education will soon receive a final draft of the regulations and could take a vote this month or next.
If approved, the changes could take effect as soon as the next school year.
Contact Olympia Meola at (804) 649-6812 or
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Reader Reactions
“Interested”- You sort of helped to make my point. At what point do we start making people accountable for their own lives, if you don’t want to do it, but it’s something you know you should, suck it up and do it. I don’t like taking out the trash, but I do it because I know I have to. I mean, I could just leave it and let it pile up, blame someone else for the problem, but in the end I’m the one accountable for my actions (or lack there of). Does making it a requirement really make a huge difference? Will everyone pay attention and put effort into it and later apply the principles? No, they won’t. I was required to read The Great Gatsby in my high school English, but I couldn’t for the life of me tell you what it’s about now… why? because I learned it to pass the test and the class, not because I was truly interested in the book (sadly, I think I’ll go back and reread it now). Financial management could easily be an option for math classes (instead of Trig or Calc let’s say). The way that VA high school diplomas are set up only specify the number of credits a student must take in each area and which classes qualify as meeting those credits. Not every student has to take Government, those most do. (I’m a school counselor so I know what I’m talking about here!) I think it would be a good idea to create a financial management class as an option to satisfy the math credits (though many many school districts already do), continue is as an additional elective, AND offer life planning style workshops after school to help students learn how to plan a budget, manage money, stay out of credit card debt, find an apartment, shop without overspending, etc. What if you’re the student who really wants to learn and try, but you get stuck in a class with baffoons because it’s required for everyone? I dare say you won’t learn as much as you could if it was an elective course and those who were taking it wanted to be there.
Be realistic “MeToo,“ an elective is not going to be taken unless it is made “required.“ Just like any other class, most people aren’t going to take a course unless it’s REQUIRED for graduation. How many courses have you taken you took only because it was required? I’ll bet quite a few. If you don’t want it as a separate course, integrate it into the senior govt course, which is required for graduation. But then again, the govt teachers may claim they don’t have the time to do so. It needs to be in there somewhere. Granted, you won’t be able to make some kids take it seriously or put it into practice, but at least it’s out there and they have to get a grade on it. Period. Man, there are just some things in life we don’t like to do, but we HAVE TO do them and this is one of them.
It’s not always about schools putting it out there, at some point people have to be accountable. Do you know how many people take personal finance and practical math classes and fail to put it in practice? You can lead a horse to water, but you can’t make it drink! I agree that a part of education should be an everyday life skills kind of class, but most school districts already offer such a class as an elective… the kids are choosing weight lifting and library aid over something more meaningful and practical in life. At some point parents should start parenting and if they aren’t going to teach/ model good life management skills they should require their kids to sign up for the class at school!
Finally, common sense from public schools. I have to wonder if the sub-prime mess and credit-card debt issue would have occurred if schools took the time to prepare students like this? Our school once had a ‘practical’ math class that essentially did this, but we dropped it because somebody who had never been in a classroom decided kids needed Algebra I instead of being able to balance their checkbooks and budget.
Come to think of it, Congress needs some remediation.
I agree with ac. ALL students receiving a VA diploma, regardless of the type—IB, college prep, general, or business, should be required to pass a one semester course in personal finance. Some states are already doing so. College students have no foggy idea about money—all they know is mom and dad are their banks and know to whom to go for money, since most have never had a job during high school years. Furthermore, all credit card issuers should discontinue the practice of issuing credit cards to students who aren’t working/earning money. The ideal situation is for them to have one of mom/dad’s credit cards as an authorized user, so the parents can reign in the expenses, if it gets out of hand OR alternatively have a credit card backed up by money, say $500 and when that’s reached, it’s cut off. In either case, the student creates his/her own credit record, but doesn’t get into credit card debt. Then after graduation, they should have some sort of responsibility for his/her own card.
All students should be required to have financial training in school, no matter if you plan to get a college degree after high school or otherwise. It is one of the main skills that will help you in life. I had no financial ‘know how’ in school, but luckily I received informal training and a good example from my parents. Many children aren’t so lucky, since their parents spend more than they earn and use credit cards for every purchase.
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