When there are an ample amount of financial education programs operating outside of school, how do we teach financial literacy in schools and how do financial educators respond to inquiries as to why we need to teach financial literacy in schools? The answer lies in the fact that not all students will have access to nor will all students attend enrichment programs outside of their prescribed school curriculum. Art and music classes, although not as important as financial literacy skills, are offered in many communities, but only a handful of parents enroll their children in such classes.
A mere 31% of young Americans thought that their high school education adequately taught them good financial habits (Bank of America). https://about.bankofamerica.com/assets/pdf/BOA_BMH_2016-REPORT-v5.pdf
40.2% of those with low levels of financial literacy relied on parents, friends, and acquaintances as their most important source of financial knowledge, compared to 20.8% of those with the highest levels of financial literacy (National Bureau of Economic Research). http://www.nber.org/papers/w13565.pdf
“The number one problem in today’s generation and economy is the lack of financial literacy.” – Alan Greenspan, former Chairman of the Federal Reserve
“Financial literacy is an issue that should command our attention because many Americans are not adequately organizing finances for their education, healthcare and retirement.” – Ron Lewis, former United States Representative
“The single biggest difference between financial success and financial failure is how well you manage your money. It’s simple: to master money, you must manage money.” – T. Harv Eker, author of Secrets of the Millionaire Mind
Individuals set on incorporating financial literacy into the public education system must always be aware that only quality financial literacy resources for teachers have the potential to induce behavior molding. Concerned community citizens can ensure that the program they are bringing into their schools is of the highest quality by either partnering with a government agency or financial education company, or following the guidelines established by these organizations. The divergence in behaviors of financial literate and illiterate individuals is the difference between a financially secure future and a future plagued by financial struggles.
The Financial Consumer Agency of Canada (FCAC) stresses that tailoring programs toward individual learner needs and the use of interactive activities is critical in capturing the attention of participants and promoting positive behavioral change (Financial Consumer Agency of Canada). https://www.canada.ca
The International Organization of Securities Commissions asserts that partnering with relevant industry experts and education providers to develop and deliver content allows programs to maximize limited resources and leverage one another’s strengths (International Organization of Securities Commissions). https://www.iosco.org/library/pubdocs/pdf/IOSCOPD441.pdf