What is Your Thinking on Mandatory Financial Education in Schools?
By Sam X Renick
CNN just asked the question in a recent column: Sex Ed is required (in schools). Why not financial education? I posted the question and my thinking on LinkedIn and got an excellent response. What are your thoughts? Let’s dialogue and diversify our thinking so we can bring forward our best solutions for kids and families. Here is my thinking and the thinking of several others! Make it a Sammyriffic day!
My Thinking
- Financial education needs to start early at home. Game over by age 7. Reference University of Cambridge study – Adult money habits are formed by age 7.
- Lots of easy access to resources online already exists. More is in the works. As an industry we should keep innovating and improving. That is happening.
- Reinforcement and support should be available but optional through schools. It all depends on what is being taught by whom.
Thinking Posted By Others on Requiring Financial Education
“College graduates spent 16 years gaining skills that will help them command a higher salary; yet little or no time is spent helping them save, invest and grow their money.”
“Financial education in the schools is absolutely a must and we need qualified people to help provide that education. I’ve heard story after story of teachers who weren’t prepared to handle questions about some (basic) financial issues. There are many free online resources, even web sites that can be maneuvered independently by students. But, regardless of resources we need to encourage TALK about money and let educators know they don’t have to have all the answers but provide them with resources to find those answers and/or have the students find the answers and report back to the class. Hands on application of the data is needed for true understanding, but that can also be incorporated into any number of current required classes.”
“Absolutely agree. The problem is three-fold however. 1st the student schedule, mandatory subjects and standardized testing takes priority, second the teachers are just ordinary citizens with as little financial knowledge as anyone else so they aren’t qualified and third there is a price to pay to develop curricula and materials and train those teachers. Local communities generally run the schools and aren’t happy to have mandates come from afar.”
“Sam, I completely agree with your 3 points. It needs to start early, at home. Schools need to take advantage of existing resources and share feedback to make those resources more impactful.”
“This is an EXCELLENT article. “We need to start in K-12 schools. Any year we delay by not adding financial education, one more generation is going out of high school without those skills and knowledge” says Annamaria Lusardi, a professor at George Washington University and one of the nation’s leading experts on financial literacy.”
“Absolutely agree with your 3 points, too, because it is all about practice, practice, practice.”
“A much needed skill and it should be taught continuously throughout school. Hopefully, it will become mandatory in all high schools across the land sooner rather than later. Even better if it was recognized in elementary and middle schools.”
“Excellent article! Needs to start early by example at home as well as in school. Required prior to graduation for sure!”
I think those are important challenges to address. However, there seems to be many ways to incorporate financial education in the curriculum using the current subjects of math, reading and even science. Developing a budget for school supplies and determining how much is spent throughout the year for example. I know there are financial education programs already developed including Sam X Renick’s model and others. I think local banks and credit unions would be interested in having their future clients learn how to better manage money and may sponsor some of these programs.
About Sam X Renick
Sam X Renick is a source and force of knowledge and joy on great money and reading habits. He is a former aerospace manager and financial consultant turned award winning author and social entrepreneur. In 2001, he founded the “It’s a Habit!” Company and co-created children’s storybook character Sammy Rabbit to make it easy for anyone to talk to and teach children early about great money habits!
Sam’s current focus – execution of Sammy Rabbit’s Dream Big Financial Literacy and Reading initiative! Discover more at www.SammyRabbit.com.
Sam has written and produced one of the largest libraries in the world of financial literacy songs and stories. His exemplary work in 8 countries with over a quarter million children has resulted in multiple honors for himself and others, including the New Jersey Coalition for Financial Education Muriel F. Siebert Lifetime Achievement Award. His efforts have been chronicled by a variety of media including NPR, MSN, the Armed Forces Network, etc. Kiplinger editor, Janet Bodnar wrote this about the visionary innovator:
“Anyone who has ever had a hard time trying to persuade a group of 7 year old children that saving money is fun, should invite Sam X Renick for dinner. Renick can whip a gym full of elementary school kids into a frenzy of enthusiasm for saving money minutes after bounding into the room.”
