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Morgan Wills

Professor Sean Waters

CO300

13 December 2021

The Case for Colorado High School Financial Literacy Classes

The American Psychological Association found in a 2015 survey that money is the

number one cause of stress for adults in the United States (Scott). If this is the biggest stressor in

most Americans' lives, then why aren’t we taught more about it? I am proposing that the House

Education Committee of Colorado should vote to pass a bill requiring high school students to

pass a financial literacy class in order to graduate. For instance, in the United States today, 61%

of citizens do not have enough money to cover a $1,000 emergency (Rose). On top of that, 41%

of Millenials stated that they spend more on coffee in a single year than had invested into savings

and retirement (Housman). These mind blowing statistics are only a few of hundreds that make

us question why financial literacy isn’t required in schools.

Financial literacy is the ability to comprehend and demonstrate financial skills such as

saving, budgeting, and investing. Topics such as these are the basis of financial knowledge and

should be known to everyone. One way to introduce these skills is by teaching them in school.

As of 2021, there are only 21 states that require students to take personal finance in high school,

whether that is a single class or a unit incorporated into another class (Silver). Students who are

simply introduced to financial skills are already more financially secure than those who are not.
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In this essay, I will examine the reasons why a financial literacy class is important for students to

participate in.

First of all, financial literacy largely impacts your physical, mental, and emotional

wellbeing whether that be positive or negative. It has been shown that there is a continuous cycle

of money and mental health problems that is hard to break. The Money and Mental Health Policy

Institute found that 46% of people who are struggling from debt have also been diagnosed with a

mental health issue and that 86% of these people share that their debt makes their mental health

problems worse (Data Show Strong Link). Included below is an infographic of the cycle of

money and mental health problems.

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The same data shows that people experiencing debt are three times more likely to contemplate

suicide. Another interesting study on assessing financial insecurity among common eye

conditions found that many demographics with eye diseases, such as glaucoma, reported being

financially insecure (Hom). Patients who examined their underlying health problems traced many

of them back to financial insecurity. With so many Americans stating that their number one stress

in life is money, we have seen that this stress can cause anxiety, depression, fatigue, diabetes,

heart disease, and many other problems. Simply learning about personal finance can help

alleviate many of these problems and increase one’s quality of life.

Secondly, there is a large disparity in financial literacy rates among different racial and

ethnic communities. Black, Hispanic, and Native American populations tend to have lower rates

of financial literacy (Mollenkamp). Members of these communities use more money orders, bill

payment services, and check cashing - all of which are bound with financial insecurity

(Mollenkamp). Christian Sherill from Next Gen Personal Finance shares that there is a huge

equity problem within personal finance instruction. Every single kid deserves the opportunity to
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explore the financial world. Finances are a problem for most people and they impact everyone

differently, but they particularly hit various ethnic and racial communities harder. Native

Americans experience the highest level of financial insecurity and fragility in the United States

(Mollenkamp). Not only is this due to poor choices, but also a lack of knowledge. Financial

assets are typically intangible assets that have value such as bank deposits, stock equity, cash,

bonds, etc. One-third of African American and Latino populations have no financial assets at all

(Mollenkamp). In a testimony to the President’s Commission on Social Security, Michael

Sherraden and Benjamin E. Youngdahl, reported that the median net worth of whites vs. African

Americans is 11 to 1, largely due to differences in assets. Financial literacy rates also vary among

socioeconomic statuses. In a report done by Standard & Poor’s Global Financial Literacy Survey,

the team found that only 4% of kids who come from low-income families will break the cycle

and move into the upper-middle class (Li). It is said that the ability to accumulate assets can

decide whether families and individuals can leave poverty and become financially secure

(Breaking the Cycle). Closing the racial and socioeconomic wealth gap in America is an ongoing

problem and I believe that taking a step to fixing this problem starts in the classroom.

Financial literacy rates are seen varying between men and women, predominantly due to

a lack of confidence in themselves. In a study done by the TIAA Institute, women answered “I

don’t know” to more than 25% of questions on a financial literacy survey while men answered “I

don’t know” to less than 20% of questions (Buchwald). There is a negative stigma in society that

finances and money are a man’s job and women are seen as inferior when it comes to these skills.

This drives women away from something as important as personal finance. In another research

finding by the University of Groningen, the University of Mannheim, George Washington

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University, and the Dutch Central Bank, they found that women are more likely to answer “I

don’t know” if they are given the option, but are more likely to circle the correct answer if they

are not given that option (Buchwald). All of these surveys show that women aren’t scoring well

not entirely because they don’t know the subject, but because they would rather not be wrong.

This is just another reason for implementing financial literacy classes in schools. It opens a door

for women into the world of finance in hopes of attracting more into this career and for simply

instilling more confidence in women that they can handle their own financial situations.

There are a few reasons why more schools don’t provide financial literacy classes and that

is because there is a lack of funding as well as a lack of teachers. The COVID-19 pandemic

particularly has affected teacher shortages and many schools nationwide have had to shutdown

due to these shortages. So, how are we going to find money and staff to implement these

important classes? Many school districts have found partnerships with financial institutions to

bring personal finance education into schools (Zingg, et al.). For example, advisors at High Point

Financial Group voluntarily hold financial literacy seminars at high schools and colleges.

Introducing personal finance at a younger age could inspire students to someday want to teach

this subject as well. There are also many resources available for free educator training such as a

one week course from Champlain College and other materials from websites like Next Gen

Personal Finance and National Education Association. States have even gone as far as enacting

policies that require high-cost loan providers to help fund financial literacy education through

annual fees (Zingg, et al.). Addressing companies such as these can hugely shift the financial

literacy dynamic in the United States. In 2013, $17 billion was spent in the U.S. on marketing

financial services such as payday loans, while only $670 million was spent on financial education

according to a Consumer Financial Protection Bureau report (MollenKamp). Even a

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re-evaluation of the federal and state budgets can help provide funding for financial literacy

education in the United States.

A great deal of financial problems that we see as a country can be reduced if Americans

are introduced to financial literacy at a younger age. The number of financial decisions students

make are becoming more and more. Kids receive no financial education, yet they are expected to

make big financial decisions. One example of the positive outcomes financial literacy classes

bring is shown in the graph below. Three years after Texas, Georgia, and Idaho set a requirement

in place for a personal finance class in high schools, the states saw a rise in their credit scores

(Fox).

The U.S. is facing over $890 billion credit card debt and student loan debt in the U.S. alone is

$890 billion more than that (Hanson). As recorded above, without basic financial literacy skills,

people are financially insecure, live paycheck to paycheck, and face large amounts of stress. A

Rowe Prince Survey from 2017 found that 69% of parents are reluctant to discuss financial
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business with their children (T. Rowe). If parents aren’t willing to talk to their kids about money,

then who is? That is why I am asking you, as members of the House of Education Committee, to

take a great step forward in achieving financial security for generations to come by requiring the

passing of financial literacy classes for high school students.

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Works Cited

Brown, Christopher and Robinson, Lisa. “Breaking the Cycle: From Poverty to Financial

Security For All.” PolicyLink, 2016.

https://www.policylink.org/sites/default/files/BreakingTheCycle_0.pdf

Buchwald, Elisabeth. “What’s behind the Male-Female Financial-Literacy Gap? These

Academics Say They’ve Found an Answer.” MarketWatch, 5 May 2021,

www.marketwatch.com/story/whats-behind-the-financial-literacy-gender-gap-these-acade

mics-both-male-and-female-found-one-answer-11620068977.

“The Case for High School Financial Literacy | High School Financial Literacy Report: Making

the Grade 2017 | Center for Financial Literacy.” Champlain College,

www.champlain.edu/centers-of-experience/center-for-financial-literacy/report-national-hi

gh-school-financial-literacy/the-case-for-high-school-financial-literacy.

Dr. Joanne Li, Dean, professor of finance at Florida International University College of Business.

“Op-Ed: Make Financial Literacy in Underserved Communities a National Priority.”

CNBC, 10 May 2021,

www.cnbc.com/2021/05/02/op-ed-why-financial-literacy-needs-to-be-a-national-priority.

html.

Fox, Michelle. “To Combat Financial Illiteracy, Education Needs to Start Early in the Classroom,

Advocates Say.” CNBC, 5 Apr. 2021,

www.cnbc.com/2021/04/05/state-of-personal-finance-education-in-the-us.html.

Hanson, Melanie. “Student Loan Debts vs Other Debts.” Education Data Initiative, 12 Oct.

2021, educationdata.org/student-loan-debt-vs-other-debts.

Hom, Grant. “Assessing Financial Insecurity among Common Eye Conditions: A 2016†2017
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National Health Survey Study.” Nature, 23 Aug. 2021,

www.nature.com/articles/s41433-021-01745-1?error=cookies_not_supported&code=231

2bacc-5be6-44f6-8046-50fa119784fa.

Housman, Drew. “Millions of Millennials Spend More on Coffee (and Other Things) Than

Retirement.” The Simple Dollar, 13 Aug. 2020,

www.thesimpledollar.com/save-money/millions-of-millennials-spend-more-on-coffee-an

d-other-things-than-retirement/.

Mollenkamp, Daniel T. “What Is the Racial Gap in Financial Literacy, and Why Does It Matter?”

Investopedia, 5 Apr. 2021,

www.investopedia.com/the-racial-gap-in-financial-literacy-5119258.

Rose, Samantha. “4 Scary Financial Facts: How to Avoid Becoming A Statistic.” OppLoans, 11

Oct. 2021, www.opploans.com/oppu/articles/scary-financial-facts/.

Scott, Elizabeth. “What Are the Main Causes of Stress?” Verywell Mind, 29 June 2020,

www.verywellmind.com/what-are-the-main-causes-of-stress-3145063.

Sherraden, Michael and Youngdahl, Benjamin E. “Assets and the Poor: Implications for

Individual Accounts and Social Security.” 18 Oct. 2001,

https://www.ssa.gov/history/reports/pcsss/Sherraden_Testimony.pdf

Silver, Caleb. “Studying Personal Finance May Become Legally Required.” Investopedia, 30

July 2021,

www.investopedia.com/the-push-to-make-financial-literacy-into-law-4628372.

“T. Rowe Price Insights - T. Rowe Price: Parents Are Likely To Pass Down Good And Bad
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Financial Habits To Their Kids.” T. Rowe Price, 13 Mar. 2017,

www.troweprice.com/corporate/us/en/press/t--rowe-price--parents-are-likely-to-pass-dow

n-good-and-bad-fina0.html.

Zingg, Laura, et al. “Closing the Financial Literacy Gap.” Teach For America, 17 Apr. 2021,

www.teachforamerica.org/one-day/ideas-and-solutions/closing-the-financial-literacy-gap.

“Data Shows Strong Link Between Financial Wellness and Mental Health.” Enrich, 24 Mar.

2021,

www.enrich.org/blog/data-shows-strong-link-between-financial-wellness-and-mental-hea

lth.

Self-Assessment

Process

What I did well: What I did well throughout my process was finding sources that are relevant in

timing and that will also impact my audience. I found a lot of resources, almost too many,

because it was hard to figure out what information to keep and cut. I felt as though I needed to

include all of it to help get my point across. It was also timely information that was up to date

and credible for my audience.

What I could improve on: I could improve on keeping track of my resources since I had so many.

Sometimes I had information and left the citation blank because I accidentally got rid of the tab

and had to go back to find it.

Product

What went well: What went well was my ethos (credibility) because a lot of my information

came from good sources/journals. I also thought I added good emotion to it because of how
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many people this problem impacts. I believe that my audience was specific enough to make a

change and my information presented should make them consider acting.

What I could improve: I think that I could improve my introduction and where my thesis goes. I

changed my entire introduction last minute because I heard during class that it should get straight

to what I want my audience to do.

Purpose: Extending Rhetorical Awareness in a Particular Situation - 47/50

Purpose: Integrate Quality Sources, Use Compelling and Convincing Evidence - 46/50

Writing Strategies: Organization and Revision - 36/40

Writing Strategies: Style, Editing, and Appearance - 35/40

Self-Assessment: Accuracy and Thoroughness - 19/20