LOS ANGELES--(BUSINESS WIRE)--United States Secretary of Education Miguel Cardona says personal finance lessons should be mandatory in our schools, and he’s being applauded by schools like Learn4Life, which has been teaching financial literacy to its high school students for the past seven years. Currently only 21 states make financial classes mandatory in high schools and only a few more require them to be available as elective courses.
During Financial Literacy Month, it’s important to note that graduates of high schools with financial education are less likely to fall prey to high-cost predatory loans (such as payday loans) than their peers without guaranteed financial education.1 They are 21 percent less likely to carry a balance on a credit card while in college, and apply for federal aid and subsidized student loans more often.2
Click to Tweet: #DidYouKnow that graduates of high schools with financial education are 21% less likely to carry a balance on a credit card while in college and apply for federal aid and subsidized student loans more often? #FinancialLiteracyMonth #Learn4LifeSchools
“We definitely see the value in teaching financial literacy to all of our students,” said Joseph Scibana, director of career and experiential learning programs at Learn4Life, a network of 80+ nonprofit public high schools. “Students learn to prioritize spending based on needs versus wants, how to read a paystub with withholdings and deductions, and they discover the beauty of compound interest when you are saving money, but the dark side of that when you are borrowing.”
Scibana points out that financial education is essential for students of all socioeconomic levels. Of the 63 million adults who don’t have a bank account, most are from low-income households, have less education or are in a racial or ethnic minority group.3 These “unbanked” individuals pay fees to cash their paychecks, purchase money orders or use a prepaid credit card.4
“The good news is that we see a trickle-up of financial knowledge when our students learn how to be fiscally responsible,” he said. “They pass on the knowledge to their parents and siblings which helps the entire family save money.”
Learn4Life student Roxeanna is on a path to financial literacy by building credit and getting a good job. She has learned how to budget, create a financial plan and save money. “I now realize why it’s important to know about finances for your adult life,” she said. “I learned that budgeting needs to become a habit now so when I’m older I’ll be in a great financial state.”
Learn4Life is a network of nonprofit public schools that provides students personalized learning, career training and life skills. Each school is locally controlled, tuition free and gives students the flexibility and one-on-one attention they need to succeed. Serving more than 47,000 students – including full-time and intersession students – we help them prepare for a future beyond high school. For more information, please visit www.learn4life.org.
1 Next Gen Personal Finance: Financial Education for ALL
2 Next Gen Personal Finance: Financial Education for ALL
3 Federal Reserve: Report on the Economic Well-Being of U.S. Households in 2018 - May 2019
4 Federal Reserve: Report on the Economic Well-Being of U.S. Households in 2018 - May 2019