I don’t know what all schools do but my general understanding is that public schools at least are not making it a practice now, any more than they did when I was a kid, to teach basic consumer finance (& law cause it really is connected) to high schoolers. Doesn’t it seem obvious to most people that kids need to learn about credit, mortgages, rental, interest, contracts, travel… A whole bunch of things that are actually extremely likely to be part of the majority of peoples everyday lives?
Does this never even get suggested as a basic curriculum addition? Is there a conspiracy against it? It seems insane to me that these serious, important fundamentals of life in the United States and the world at large, are completely ignored by basic schooling. What gives?
Here in British Columbia, they taught it 50 years ago when I was in high school, and still do. But teaching stuff in a vacuum, that is, “here’s some stuff you can’t even imagine using right now, there will be a test on Tuesday” does not always make an impression. That’s not a slam on teachers, it’s a problem with all teaching: some percentage of people in your class don’t want to be there, have all kinds of major distractions from work to family problems to teenage angst, and find this class the spiritual equivalent of whatever class you most hated in high school.
I did for years as a public school high school teacher as a financial algebra class, I taught them how interest works (DRIP your divs people!), paying off credit card and amortized loans, insurance and payroll taxes. And even threw in some spreadsheet work so they could see how it is used in personal finances. Now it is the first year as a mandate in many Colorado districts.
I honestly think high school is the wrong time to teach it. One, its still extremely hypothetical to students. They don’t expect to appky any of that k owledge for years (and they may not; whether they go to college or don’t, most will live under their parent’s roof for at least a few years). Past that, the fact is that “financial good sense” is so freaking individual and complicated. Financial literacy works well in a fairly homogenous community, but it is a mess when you have a huge diversity of current socioeconomic status, experiences, future paths, and cultural expectations in front of you.
Furthermore, who is going to teach it? Like, do we create a separate certification? Or do we just let the principal use that slot to keep a coach busy during the day? You 100% cannot make the assumption that your average teacher has a high enough level of financial literacy to teach such a course, and lord, ive heard teachers give bad financial advice to students.
I think if we want to increase financial literacy, the best age is 19-22. You could do in six sessions what would take 36 weeks of school. Make the classes free, but tie them to Federal aid: Pell grants, yes, but also WIC or SNAP. Big add campaigns to normaize them. Hold the classes at libraries and community centers. Put them on line.
@MandaJo: you’re certainly an expert in teaching and student development while I’m not.
But IMO a LOT of “financial literacy” is more a habit of mind than a lack of knowledge about IRAs or capital gains taxation or whatever. And IMO (as a clueless never-parent) is that most of these habits of mind need to be inculcated starting in about kindergarten.
As an extreme example, teaching somebody who has little to no ability for delayed gratification about IRAs ain’t gonna work because they’re going to spend every penny of take-home pay even if their job is brain surgeon.
Likewise the number-o-phobes will scrinch their eyes shut the instant we talk about anything financial because it’s all about using numbers. To them money is useful buying power, not numbers.
Absent the right mindset(s), financial literacy IMO cannot be taught. Yes, young people could be forced to sit through training, but it would not stick.
Time. With curricula as they are presently constructed in U.S. schools, there is no time for such things. I say “as presently constructed” with the hope that there will eventually be a much needed overhaul. For example, Algebra is a complete waste of time unless you are going into a field such as math teacher. It should be solely an elective.
Something like consumer finance would be much more relevant and helpful to young people entering a predatory economic environment as adults. By creating more electives, it makes room for more subject areas and classes. Unfortunately, more electives means a larger staff is necessary, and they don’t want to spend the money.
I don’t think it would stick in high school, especially for any grade before senior year, but I do think having the information available, even as an opt-in, would make a big difference. It’s just that people need the information when it’s relevant, not years before.
For one thing, I teach a lot of first generation kids who know all about frugality and delayed gratification, but nothing about IRAs. Very poor kids often don’t know anything about saving, because it’s very hard to save if you are very poor, and in fact, many of our social programs actively discourage it with very low asset allowances before you are cut off. But you can’t teach those kids in 9th or 10th grade about what to do when they are in their early 20s.
There’s also a lot of kids who have strong habits of mind despite parents and family that do not. Sometimes the apple does fall far from the tree.
During my senior year of high school in Texas back in 1993-94, I took an elective course called Independent Living. I took it because I thought it was going to be a low effort class and I wanted to take it easy my senior year. Since it’s been about thirty years, some of my memory is a bit fuzzy, but we did cover things like the process for renting an apartment, credit cards, looking for a job, banking accounts, how to create a household budget, etc., etc. We didn’t cover law at all though.
But I think some law was covered in our U.S. Goverment course. Again, it’s been so long many of the specifics are fuzzy, but I know we covered some of our basic rights during the course including the 5th amendment. But I suppose the course covered how govenrment works more than it covered specific laws.
Class of '72 here, and in Baltimore county way back then, we weren’t taught anything about money or law - at least not in school.
My mother made sure we understood about budgeting and such, and I somehow learned about interest (both earned and paid.) Once I was out on my own, I did pretty well most of the time, tho there was the awful occasion when I was down to $20 in the bank with a baby that needed food and a car that needed gas. I know kiting checks is wrong, but it got me to payday, and I never found myself in such a dire situation ever again.
All I know about law comes from TV… probably not the best source.
Yeah, I remember Home Ec. Banking was part of that, like balancing a checkbook, budgeting, basics of loans, etc. It doesnt have to be much to be beneficial to young people. But, high school now seems to be all about preparing kids for college, with little room for practical stuff.
I also remember insurance and car payments being covered in Drivers Ed.
When I was in High School (1977-1981) there was a belief by most adults (including teachers) that practically nobody in my class would ever have the wherewithal to purchase a home, so things like mortgages (16.6%!) were not covered.
???
How are you supposed to do personal finance without knowing algebra?
The idea that kids should be able to graduate high school without knowing algebra is head scratching to me. It’s fundmental not just because of learning how to manipulate equations, but learning algebra teaches you how to think about things, understand the relationships between things and how they affect each other, etc. It’s also a prerequisite for any higher math.
And if you don’t know algebra you should be disqualified from most college faculties. Even social sciences use algebra heavily.
When I went to school we started algebra in grade 8, and built on it for four years. Matriculation required math up to pre-calculus and simple differential calculus.
We need more serious math in schools, not less. And an honors math track for advanced students.