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Sherdona Jones

Professor Reynolds

English Composition II

25 March 2022

Why should teaching financial literacy be a part of U.S. school curriculum?

The U.S. school systems should incorporate financial literacy as a mandatory standalone

course to enhance financial knowledge in young people for financial success prior to graduating.

Understanding that financial literacy is a lifelong skill can allow individuals to make wise

decisions and understand the value of their financial freedom with knowledge from an early age.

Young adults will be able to capitalize on the benefits of those financially conscious decisions by

encouraging financial literacy as a standard in U.S. schools' curricula.

As society advances and innovations become necessary to thrive, the understanding of

financial literacy has become an indispensable tool of knowledge that can be an essential part of

economic stature once learned. Financial literacy is "the ability to use knowledge and skills to

manage one's financial resources effectively for lifetime financial security" (Jump$tart

Coalition). Taking advantage of personal finance courses by incorporating income and career

preparation, money management, saving, investing, and retirement throughout grade school

creates healthy money habits. Students can apply their knowledge in their daily lives by

implementing routines as traditional skills that are lifelong essentials. Currently, only nine states

require high school students to take a standalone personal finance course before graduating

(Education). In comparison to the twenty-three states that require students to take a course in
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personal finance to graduate. Those personal finance classes are not considered to be standalone

classes but are incorporated into other coursework topic. As well as the twenty-five states that

have a required economic course to meet graduation requirements. Economic classes consist of

logical thinking and utilizing data to enhance critical thinking skills such the job market,

housing, or the environment. This way of thinking is essential for students to think, make sound

decisions for themselves families, and the community. The standalone personal finance courses

that should be mandated for all students will give them the ability to manage their own money

while making justified financial decisions.

Fig. 1. Personal finance requirements show standards throughout the U.S school systems

(Education).

Of the nine states that have exercised personal financial literacy before graduation, Utah's

graduating class of 2008 were the first students to study financial literacy under Senate Bill 154.
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Chapter 315 (Pickler et al) mandates that "The State Board of Education shall establish rigorous

curriculum and graduation requirement include instruction that stresses general financial

literacy” (Pickler et al). As Utah started its financial literacy course, with the documentation of

the five essential factors in understanding what makes financial literacy: earn, spend, save &

invest, borrow, and protect (Bungalow). It is vital to teaching students what it means to earn,

calculate gross and net income, read paychecks, and understand employer contributions and

deductions. While 32% of Americans' monthly income fluctuates (Bungalow), learning to

calculate earnings is beneficial to one's monthly net income and how to proceed with spending.

Students' spending habits of learning throughout these courses can create a framework of

personal budgeting throughout the previously mentioned categories. Setting financial goals to

earn and spend responsibly can instill ethics in students that they do not have to wait to enter the

working world to experience.

Following the need to spend is also the need to save; financial emergencies as you enter

adulthood and begin to provide for yourself can be stressful and overwhelming. Explaining the

need for emergency funds and setting aside money that can help alleviate those financial burdens

and the mental toll financial stresses can impact someone. Preparation in young adults for these

"worse-case scenarios" will instill confidence and financial knowledge in students. Proving the

financial principles learned as a student can better prepare for real-life money scenarios.

Financial knowledge is in stark comparison to entering adulthood with no financial experience,

financial knowledge, or being consciously aware of deficit predicaments with difficulties being

financially literate and succeeding in society.

As Utah began the process of GFL courses or (General Finance Literacy) mandated

courses. The Utah board of education requires its students to pass with a C or higher
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successfully, receive an 80% or higher on objective tests and demonstrate competency on five

items on the performance test (Finance in the Classroom). Mandating such courses across the

nation can reduce student loan debt, shown in a state such as Utah, which has residents who owe

the least in average college debt per person at about $32,000 and is also the lowest percentage of

indebted graduates. Only 32% of graduates in Utah carry a student loan balance, this is much

lower than the U.S. average, which is over 57% (Milena). These statistics illustrate how

education is the key to financial literacy. The U.S. public school system has created a plethora of

knowledge to instill in children from grades K-12. So, why not incorporate an additional skill

that can last a lifetime? Early introduction to financial education can create a positive money

attitude that can last a lifetime, instead of learning about many school subjects that have no

beneficial factor in the outside world or into adulthood.

These courses must continue to be up to date by trained and financially literate

professionals who understand the content passed onto the youth. The teachers themselves should

undergo extensive training in financial literacy prior to instruction to increase their job

satisfaction and reduce the burdens of financial stress. These additional training and certification

opportunities could result in a pay raise for teachers and additional qualifications for other roles

as educators in the school systems. Opening the door for the financial advisors to have job

opportunities within the school system as financial literacy instructors can also help the teachers

feel alleviated by the influx of assistants teaching a new curriculum. The current teachers in the

school systems can remain dedicated to the subjects they have a passion for with the assistance

of hired financial instructors.

Utah's steps to prepare over 65 teachers from elementary school through high school was

to present the teachers with an Economic Education course to improve their understanding of
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finance and facilitate financial literacy lessons in the classroom. As VanGesen stated, "Utah is on

the forefront of where that education needs to be for students” (Lee et al). The instructors

underwent refresher courses that instilled new financial education concepts. The courses gave

opportune moments for teachers to become students, ask questions, and get answers about saving

and investing. This was evident in the financial decisions as Utah demonstrated the ability to

implement such standards and have financial success in their graduating classes. The state also

reduced the financial burdens that await young adults as they transition from their parents' care

onto their life paths. Why not begin to implement change across the U.S. curriculum to grant the

same opportunities for financial knowledge to everyone in the U.S. public school systems?

Personal Health, Stress, and Finances

Money management is becoming increasingly complex, and understanding finances

increases awareness. Money management stressors has support from findings linked to suicide

rates from financial strains. According to an article on “Financial Strains and Suicide Attempts,”

"Financial strain accumulated from multiple sources (debt, housing instability, unemployment,

and low income) should take into consideration for optimal assessment, management, and

prevention of suicide (Elbogen et al). He mentions throughout his notes that his findings from

this study, other remedies, financial education, and other services can be solvents to reducing

suicide rates (Elbogen et al). Social injustices can stem from the lack of financial education

opportunities presented in specific individuals' lives. Certain hardships have contributed to those

unfortunate circumstances, such as suicide due to feeling like there were no other answers to

their problems.

Mandating financial literacy throughout the U.S. school systems offers hope by

alleviating financial inequalities that can break generational poverty within families. Bringing
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financial knowledge, counseling services, and education can improve mental and financial health

(Guan et al). In contrast, some individuals may object to intertwining financial literacy in public

education due to potential costs. More important than the potential costs in question are the

cultural values that vary among demographic groups, religious beliefs, and understanding of the

financial background stories that have helped shape their finances. Emphasizing throughout the

conducted studies the collaborations between policymakers in mental health and financial areas,

this coaction can benefit society (Guan et al). Learning to separate oneself from the storyline

embedded into their financial paths due to the financial impacts of one's culture, community, or

household history can enhance one's mental health while remaining sensitive to cultural

differences.

For instance, most taxpayers' dollars contribute to funds that help pay the interest

accrued on the nation's debt. With payroll taxes deducted from weekly paychecks, the

discretionary spending for budgets lawmakers controls through annual appropriation acts that

Congress must review 25% (Solutions). The categories and statistics that Congress reviews for

specific purposes define what an appropriation act means every year. The government can

prioritize academic and financial programs in education to continuously prepare and support

individuals while fostering education and job development.

Educating the Teachers

While teaching financial literacy would benefit America's future generations, teachers

would also require the opportunity to continue their education in personal finance. Keeping

trained teachers to advocate for the financial literacy curriculum in the classroom and use real-

life examples such as school debts, credit card debt, how to apply for loans, and accumulating

interest can be beneficial. Teachers have ethical and moral standards in society that hold them to
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higher standards. Teachers are more than influential and have lasting impacts on the youth as

they transition throughout the school years. Educators lead throughout the entirety of their

profession. They instill in their students the meaning of trust, reinforce positive behaviors, and

demonstrate the definition of leading by example.

Holding teachers to a curriculum standard of financial literacy as they are in a disarray of

student debt or living paycheck to paycheck contributes to the purpose of enforcing an

economics course. The conversation of budgeting is not merely to increase the teachers'

coursework but also to assist them with the means to excel in their personal financial lives.

Incorporating financial literacy should not solely be the teachers' responsibility in the U.S. school

systems. However, it can open the doors with additional job openings for financial advisors to

have job opportunities within the school system. Financial literacy instructors may help as

buffers to ensure that teachers do not feel as burdened to learn new curricula that they may not be

enthusiastic about. These advisors can work on how to teach these courses to the students and

teachers if they are interested then potentially incorporate workshops with the students' families.

These methods and approaches from the advisors can reach communities outside the classrooms,

thereby creating conversations in households that may not have had grounds for a foundation

initially. With guidance and support, knowing that there are resources, other families may pass

this knowledge on to their friends and loved ones if there are questions.

Policy Decisions

In 2010, former President Barack Obama declared April as National Financial Literacy

Month. President Obama proclaimed, "not a day but a month for all Americans to bring

awareness to the programs and activities available to enhance their financial literacy." Our

responsibility is to understand basic financial concepts and our economy, look for new ways to
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help individuals make informed decisions, and educate our children on core common financial

competencies (Federal Register).

Following in former President Obama's footsteps, President Biden continues to strive

toward facilitating conversations amongst communities regarding financial literacy. The

American Library Association (ALA) was one of the Infrastructure Investment and Jobs Act

(IIJA) recipients signed into law by President Joe Biden on November 15, 2021. With Biden

passing this law, public libraries were at an advantage regarding funding and influences the

libraries can have on the communities. from within the school, or the public library can still

promote digital equity. The Digital Equity Act (DEA) prioritizes "activities that seek to provide

individuals and communities with the skills, supports, and technologies necessary to take full

advantage of a broadband internet connection when they have one (Libraries)." The ALA and

FINRA Investor Education Foundation teamed up to support free resources to library workers

with a guide to help support children in public school systems or within the community public

libraries.

The financial literacy books released in January 2022 to the participating libraries that

received grants for funding have obtained copies of the Thinking Money for (All) Kids, a printed

copy, and a copy of the ALA Editions title Rainy Day Ready: Financial Literacy Programs and

Tools. These books will help to provide complimentary financial knowledge and computer

literacy skills to help build beginner confidence. They are creating conversations that can redirect

one to the correct financial advisors without them feeling intimidated. Incorporating even the

digital equity option resources throughout all school libraries creates a foundation of equality for

all students to access the school library. As part of the school, teachers should be able to

collaborate with FINRA, as did ALA, and have up-to-date current resources readily available for
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students to access. More than 500 small and rural libraries from over 48 states received the 2021

grants, providing them with books and resources to facilitate skills, begin conversations, and

enhance media literacy while integrating the community. The goal of the school system is to

reach young children and adults through the library workers or advisors within the library to

create financial conversations and bridge the gap for financial illiteracy.

 Looking for new ways to help individuals and educate children begins in grades K

through 12th grade is a constant process. Children spend on average 7-8 hours a day in school

with the guidance and influence on their education, promoting certain behaviors. President

Obama saw the need for financial education and began the process to ensure a fiscal crisis would

not happen again as he urged Americans to empower themselves through financial knowledge.

Spread the Information

The first step in knowledge is having these conversations that no one wants to have.

Introducing these conversations can lead to these children teaching what they learn to those they

live with. The key to knowledge is shared education and utilizing what you learn into your

everyday life. Practicing and making mistakes as one learns throughout school years without

much fault but a grade. Can bring more than awareness to situations and outcomes instead of

learning the hard way as an adult when the harsh reality of debt, interest, long- term planning

mistakes lead to poor financial decision making.

Conversely, with the evidence-based research supporting the benefits of financial literacy

taught in schools, the price seems invaluable but well worth it. Students turned graduates may

then be able to prepare themselves for academia better, live independently, entering the

workforce by maintaining a healthier mental and financial lifestyle. The result would be better
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for everyone, the economy's growth, the innovations, technologies that must develop, and society

to thrive in unification with financial literacy education.

Alternatively, providing instructors throughout the U.S. school systems with the

information needed to help the schools succeed by incorporating new criteria into Science,

Technology, Engineering, and Mathematics (STEM) could balance the curriculum. As COVID

has had significant impacts on households due to the financial strains, access to broadband

internet, and increasing mental health problems, the rationale for communication and access to

all students regardless of circumstances is urgent. Many children experienced shortcomings due

to the economic stressors of their parent's decisions which compounded throughout the COVID

pandemic. Once teachers are confident in implementing the criteria, answering questions, and

having healthy uncomfortable conversations with their students, the curriculum can begin

implementation region by region from grades K-12. As school throughout the U.S. differs by

state and months therefore instructors can undergo training.

With a mandate of financial literacy across the U.S., students can empower their financial

freedom through education. The government needs to show interest by implementing what

several states have done by incorporating financial literacy in their economics courses. While

specific steps have been started, there are still many gaps nationally that should address a robust

economic curriculum. Steps such as training teachers to provide financial education to their

students, having specialized financial advisors working within schools, and the word-of-mouth

knowledge shared in families and communities play a vital role. As proven in several states

already implementing many of these steps, having the capacity to scale financial literacy

nationwide is long overdue. Financial literacy coursework in school systems must follow a

national mandate for students and the greater society.

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Works Cited

Education, Council for Economic. “2022-Survey of the States.” Councilforeconed.org, 2022,

www.councilforeconed.org/wp-content/uploads/2022/03/2022-SURVEY-OF-THE-

STATES.pdf.

Elbogen, Eric B, et al. “Financial Strain and Suicide Attempts in a Nationally Representative

Sample of US Adults.” American Journal of Epidemiology, vol. 189, no. 11, 2020, pp.

1266–1274., doi:10.1093/aje/kwaa146.

“Federal Register:: National Financial Literacy Month, 2010.” Federal Register, Executive Of-

fice of the President, 8 Apr. 2010, www.federalregister.gov/documents/2010/04/08/2010-

8113/national-financial-literacy-month-2010.

“Financial Smarts for Students.” Jump$Tart Coalition, 20 Apr. 2022, www.jumpstart.org/who-

we-are/jumpstart-faqs/.

“Great Homes. Flexible Leasing. Roommate Living.” Bungalow, Bungalow Team, 1 Feb. 2022,

bungalow.com/articles/the-five-key-components-of-financial-literacy.

Guan, Naijie, et al. “Financial Stress and Depression in Adults: A Systematic Review.” PLOS

ONE, vol. 17, no. 2, 2022, doi:10.1371/journal.pone.0264041.

Jasen Lee, Deseret News. “Teachers Become Students to Learn Lessons on Financial Literacy.”

KSL.com, Ksl.com, 29 Apr. 2018, www.ksl.com/article/46308297/teachers-become-stu-

dents-to-learn-lessons-on-financial-literacy.

Milena. “Student Loan Debt by State in 2022.” Balancing Everything, 31 Dec. 2021, bal-

ancingeverything.com/student-loan-debt-by-state/.
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Pickler, David. “The Nations Report Card on Financial Literacy.” The Nations Report Card,

American Publication Education Foundation, 19 Jan. 2022, www.thenationsreport-

card.org/utah.

Solutions, Ramsey. “Should Financial Literacy Be Taught in More Schools?” Ramsey Solutions,

Ramsey Solutions, 28 Sept. 2021, www.ramseysolutions.com/financial-literacy/should-fi-

nancial-literacy-be-taught-in-schools.