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ReflectionsA Case for Mandating Personal Finance in High School
Personal finance courses as well as the principles of
financial literacy should be mandatory in the United
States. The global economy has been in crisis. The
U.S. has experienced economic times that have
been compared to the Great Depression. Bankrupt-
cies, foreclosure rates, increased credit card debt,
job loss, and other issues have been in the spotlight.
Although it is important to treat the symptoms, the
underlying problem of financial literacy needs to be
addressed. Many individuals made poor financial
decisions that could be attributed to personal igno-
rance, the dishonesty of people in financial institu-
tions, or both. Others were merely living beyond
their means with no comprehension of what they
were spending, what they would need to pay each
month, or the consequences if they didn’t pay.
Black (2006) believes one of the major causes of
the current global economic crisis is society’s lack
of financial literacy. Losey (2009) contends that our
declining housing market, unemployment, inflation,
and stock markets—often identified as issues—are,
in fact, symptoms of the spending crisis in America.
“We are a country of financially illiterate people,”
he stated. “Unless and until basic financial literacy
education becomes mainstream and required in our
schools and businesses, Americans will continue to
rack up lots of debt, fall behind on their bills, lose
their homes and have to work themselves to death
to try to keep afloat” (Losey, 2009).
Myra Christopher Georgiou (mgeorgiou@csh.k12.ny.us) is a
Family and Consumer Sciences teacher at Cold Spring Harbor
High School in Cold Spring Harbor, NY. She also is a licensed
real estate broker and president of the Long Island District of
NYSAFCS, an affiliate of AAFCS.
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By Myra Christopher Georgiou
According to Fox, Bartholomae, and Lee, “the
need for financial education among Americans is
often demonstrated with alarming rates of bank-
ruptcy, high consumer debt levels, low savings
rates and other negative outcomes” (2005, p. 195).
The authors attribute this to low financial literacy
levels and poor family financial management.
Losey (2009) cites compelling statistics on (a) the
rise in college suicides because of credit card and
student loan debt, and (b) the fastest-growing age
group filing for bankruptcies—young adults under
age 25. When people do not pay for something
with actual dollars, they do not realize the value of
the money they are spending or the cost of paying
it back.
Our children are inundated with credit card
offers as soon as they are of age (18), even though
they may not know or understand how they work.
They can be making life-altering financial deci-
sions without the necessary foundation of knowl-
edge to do so. This situation is not sustainable,
given the unprecedented financial power of youth.
“With spending power of $172 billion a year,
youth attract the interest of retailers and credit
card companies, but have little knowledge about
how to make wise consumption decisions” (John-
son & Sherraden, 2007, p. 120). MasterCard reports,
“According to recent research from TRU Insights,
the purchase power of teens (12–19 years old) has
reached $819 billion globally” (Sommer, 2012).
How is that purchasing power even possible from
a group that generally does not work? Should this
power be allowed if they have no formal educa-
tion in finances?
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An Education World (2015) article explored a
study entitled “Youth and Money.” The study
found that less than half of U.S. high school and
college students have a savings plan and only one
fourth of those students stick to a budget. The
study also found that one third of the students
participating in the study didn’t keep track of
their spending. A Council for Economic Educa-
tion (2009) survey of adults found that half of
them would fail basic economic concepts. Bryant
(2010) reported that “even before the economic
crisis, statistics showed that 70% of [American]
households lived paycheck to paycheck” (p. 18).
Financial illiteracy in youth follows them into
adulthood; therefore, giving youth financial liter-
acy tools will help them succeed in the global
economy as they get older (Bryant, 2010).
Szpringer (2007), a professor at the Warsaw
School of Economics, defines financial literacy as
the ability to make informed and effective judg-
ments and decisions in using and managing money.
Szpringer believes it is a multi-dimensional concept
that requires both breadth and depth of knowl-
edge. The National Bureau of Economic Research
found that financial literacy could have a profoundly
positive impact on household wealth, which, in
essence, affects all of society (Behrman, Mitchell,
Soo, & Bravo, 2010).
“Financial literacy might not help ordinary
people outsmart Wall Street professionals, but it
can help people manage their funds,” according
to Bryant (2010, p. 17). “What financial literacy
does do is give people an understanding of the
‘language of money’ so that they can manage their
own funds” (p. 18). Knowledge will empower
people to take charge of their current situation,
their own lives, and to aspire to a better future, he
notes. “Global ‘silver rights’ [a.k.a. financial liter-
acy] serve to empower the next generation and it
is our responsibility to make it happen” (p. 18).
Governments’ Commitment To Mandating
Personal Finance
In 2002, the Credit Union National Association
(CUNA) published a handbook entitled Financial
Literacy* in Schools. The asterisk in the title refers
to CUNA’s definition of financial literacy as, “the
knowledge of smart spending, wise use of credit
and the benefits of regular saving and investing”
(Kelly, 2002, p. 3). CUNA delivered the following
statement to the U.S. Senate Committee on Bank-
ing, Housing, and Urban Affairs: “There is consid-
erable evidence that financial illiteracy has reached
record proportions, and its impact has contributed
significantly to rising levels of bankruptcy and to
lowering the standard of living in general for many
American families” (p. 3). It is interesting that this
handbook was written prior to the most recent
financial crisis, and there is still no federal man-
date for financial literacy in the U.S.
“We need members of the congresses and par-
liaments of the world to support financial literacy
education for all children from kindergarten to
12th grade” (Bryant, 2010, p. 18). Espejo (2009)
agrees, arguing that we need to urge our govern-
ment officials to mandate financial education.
Educating our students regarding the value of
money and how to make healthy decisions is our
responsibility as a nation and as educators.
The federal government recognizes the need to
teach financial literacy. The Comptroller General’s
Forum (2004) found that basic financial skills,
including budgeting, planning, managing money,
and credit management, were important topics.
Forum participants emphasized the importance of
including financial education in school curriculums.
“Financial education should be part of school cur-
riculums, and additional commitment by the
Department of Education is needed” (Comptroller
General’s Forum, 2004, p. 13). What exactly is the
commitment of the Department of Education at
the national level or at the state level on this topic?
Commitment could be interpreted as a require-
ment issued by a constituency, which would then
need financial backing, which brings us back to
the current state of our economy and lack of funds
for such commitments.
President Bush created the first Advisory
Council on Financial Literacy in 2008. The Coun-
cil recommended that Congress or state legisla-
tures mandate financial education in all schools
for students in kindergarten through 12th grade,
but it was reported that education officials were
‘not interested in introducing unfunded mandates’
(Bernard, 2010, p. B1). In 2013, President Obama
created the President’s Advisory Council on
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Financial Capability for Young Americans. This
Council terminates after 2 years (2015) unless
extended by the President.
The topic is high on the global policy agenda as
well, with discussion, action, and analyses regard-
ing our children and financial literacy (Organiza-
tion for Economic Cooperation and Development
[OECD], 2009). PISA’s (Programme for Interna-
tional Student Assessment) 2012 results offer 204
pages of information and statistics related to the
financial literacy of approximately 29,000 students
in 13 OECD countries and economies. The statis-
tics are based on results of the PISA 2012 Finan-
cial Literacy Assessment that was administered to
these students. Overall, in 2012, 65 countries and
economies participated; results are featured in
other PISA volumes (OECD, 2014). Some Cana-
dian provinces have added elements of financial
literacy to core classes, with British Columbia cre-
ating a mandatory financial life skills class require-
ment for 10th graders (Loriggio, 2014).
The Challenges of Mandating Personal
Finance
The issue of mandating plays a part in any subject
matter and course that public schools offer. With-
out a mandate, money is difficult to find in good
times, let alone in bad times. CUNA reports that,
“a society of financially literate consumers, who
can avoid scams, predatory lenders and the entice-
ment of over-spending, will never emerge without
laws mandating financial education in schools”
(Kelly, 2002, p. 13).
So, what do you get when you combine a
weak housing market, rising unemployment,
inflation, the collapse of Bear Stearns and
Lehman Brothers, fallout from the subprime
mortgage fiasco, declining home prices, stock
market volatility and geopolitical unrest in
the Middle East? The opportunity of a life-
time to promote financial literacy and poten-
tially save a life. Maybe, just maybe, financial
literacy could be the solution to many of our
country’s social problems. (Losey, 2009)
However, the U.S. Government reports that “for a
federal financial literacy effort to be successful,
the driving force must come from the highest lev-
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els, such as the President or a cabinet secretary . . .
[and must] require exercising the ‘bully pulpit’ of
federal leadership” (Comptroller General’s
Forum, 2004, p. 2). In the meantime, arguments
are being developed for the inclusion of personal
finance in high school for all students.
Personal Finance Needed in High School
Financial literacy is a fundamental life skill that
needs to be properly taught in the school system,
alongside traditional math, English, and science,
according to Espejo (2009). “Managing money is
not an innate skill, as the high rate of debt in the
U.S. shows. Lessons on managing money should
be part of a formal education” (Delisio, n.d.). In
The American School Board Journal, Black (2009)
acknowledges the need for financial literacy pro-
grams in high school and offers suggestions for
implementing them. In the same journal, Ridge
(2006) published The Ideal High School Graduate,
in which Donald Fraynd states, “High school is a
place where they can – and should – recognize
and begin to develop the skills that they will use
for the rest of their lives” (p. 64). A counter move-
ment, expressed in some detail by Coleman (2014),
is noteworthy: “America must address financial lit-
eracy early and often in our children’s lives. Man-
dating high school courses may not be the answer.”
Coleman’s (2014) arguments notwithstanding,
in my opinion as a family and consumer sciences
(FCS) teacher, there is no question that students
and society would benefit from a requirement to
take a financial literacy course in high school.
However, to achieve the goal of educating all stu-
dents in financial literacy, the federal and state
governments must mandate a requirement that
financial literacy/personal finance must be taught
to all high school students prior to graduation.
Public schools are financially burdened and many
would not be able to fund these courses without
dropping other programs. If the federal govern-
ment implemented a financial literacy require-
ment, it would need to fund and monitor it to
make sure that states were adhering to the policy.
Funding financial literacy programs is an invest-
ment in our children and our country’s future; life
has become much more complicated for our
youngsters than it was for previous generations.
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FCS and Financial Literacy Education
One way to teach our students finance, so that
they can understand it and apply it to their lives,
is to draw on existing state curricula. For exam-
ple, New York State’s Family and Consumer Sci-
ences curriculum includes a high school course
entitled Independent Living (New York State
Department of Education, 2012). This course
addresses financial education from a practical
approach using critical thinking and decision
making. (The course synopsis can be found at
http://www.p12.nysed.gov/cte/facse/course.html
by scrolling down to the Cross Cluster category.)
By teaching finance through the FCS Indepen-
dent Living course, students would learn how to
think critically, analyze, and make decisions (process
skills), which will ultimately affect their lives forever,
whether they are college bound or not. We know
that students learn and retain information learned
experientially because all three learning domains are
promoted: cognitive, affective, and behavioral
(Johnson & Sherraden, 2007). FCS courses are
taught through hands-on projects with a real-life sit-
uation approach. Experiential learning makes the
topic more relevant to the student, and helps the
student retain the information and effectively apply
it in different circumstances. “When we teach only
for facts, rather than for how to go beyond facts, we
teach students how to get out of date” (Sternberg,
2007–2008, p. 25).
I am convinced that financial literacy
really needs to be taught as a complete
personal finance course, such as
Independent Living.
I am convinced that financial literacy really needs
to be taught as a complete personal finance course,
such as Independent Living. Requiring an econom-
ics course will not ensure that students are learning
personal finance because they clearly are not the
same topics. Although economics courses serve a
purpose, we can’t expect students to get a complete
personal finance course while learning micro- and
macroeconomics. It is impossible and unreasonable
to cover all of the necessary information and life
skills in economics. The only way to cover all of the
personal finance topics and issues is to offer a spe-
cific course and provide as much project-based,
inquiry-based, experiential learning as possible.
Haven’t we seen enough evidence to
justify a personal finance course
requirement for all of our students?
Haven’t we seen enough evidence to justify a
personal finance course requirement for all of our
students? A financial literacy course should be
specifically geared to teaching personal finance, a
practical life skills process with a practical applica-
tion approach, which is exactly what the FCS
Independent Living course is. FCS educators are
prepared to teach financial decision-making, critical
thinking, prioritizing, and the difference between
needs and wants to our youngsters; we can be lead-
ers in this movement (Delgadillo, 2014; McGregor,
2010).
Why haven’t we, the United States of America,
been able to consistently provide our students
with the very important life skill of financial edu-
cation and financial literacy? It is a life skill and
life process in which all students have the right to
be educated.
References
Behrman, J. R., Mitchell, O. S., Soo, C., & Bravo, D. (2010).
Financial literacy, schooling, and wealth accumulation
[Working Paper No. 16452]. Cambridge, MA: National
Bureau of Economic Research.
Bernard, T. S. (2010, April 9). Working financial literacy in
with the three R’s. The New York Times, p. B1.
Black, S. (2006, June). Show them the money. American School
Board Journal, 189(1), 48–50, 67.
Black, S. (2009, February). An investment in literacy. American
School Board Journal, 196(2), 44–45.
Bryant, J. H. (2010, May). Financial literacy and silver rights.
OECD Observer, 279, 17–18.
Coleman, H. (2014, April 1). Is it a mistake to try to teach
financial literacy in high school? [Web log post].
Retrieved from http://www.dailyfinance.com/2014/04/
01/financial-literacy-high-school-courses-problem-
unqualified-teachers/
Comptroller General’s Forum. (2004, November 15). Highlights
of a GAO forum: The federal government’s role in improv-
ing financial literacy. Washington, DC: Author. Retrieved
from http://www.gao.gov/assets/210/202486.pdf
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Council for Economic Education. (2009). Survey of the States
2009: The state of economic, financial and entrepreneur-
ship education in our nation’s schools. New York, NY:
Author. Retrieved from http://www.councilforeconed.
org/wp/wp-content/uploads/2011/11/2009-Survey-of-
the-States.pdf
Delgadillo, L. (2014). FCS leadership in financial health. Jour-
nal of Family & Consumer Sciences, 106(3), 16–21.
Delisio, E. (n.d.). Practical, hands-on financial literacy lessons
[Web log post]. Retrieved from http://www.education
world.com/a_issues/chat/chat211.shtml
Education World. (2015). Financial literacy begins at school
[Web log post]. Retrieved from http://www.education
world.com/a_lesson/lesson232.shtml
Espejo, R. (2009). Schools should educate teens in financial lit-
eracy? Independence, KY: Greenhaven Press.
Fox, J., Bartholomae, S., & Lee, J. (2005). Building the case for
financial education. Journal of Consumer Affairs, 29(1),
195–214.
Johnson, E., & Sherraden, M. (2007). From financial literacy
to financial capability among youth. Journal of Sociology
& Social Welfare, 34(3), 119–146.
Kelly, C. (2002, February 6). Financial literacy* in schools: The
Credit Union commitment. Washington, DC: Credit
Union National Association.
Loriggio, P. (2014, December 14). Canadian kids need more
financial education: Experts. The Canadian Press. Retrieved
from http://metronews.ca/news/canada/1239018/cana
dian-kids-need-more-financial-education-experts/
Losey, B. (2009, April 14). The ‘real’ financial crisis in Amer-
ica [Web log post]. Retrieved from http://www.cnbc.
com/id/30089668
McGregor, S. (2010). Consumer education as a site of political
resistance: 50 Years of conceptual evolutions [McGregor
Working Paper Series 201001]. Seabright, NS: McGregor
Consulting Group. Retrieved from http://www.con
sultmcgregor.com/documents/publications/mono
graph_consumer_education_2010.pdf
New York State Department of Education. (2012). Family and
Consumer Sciences Independent Living course. Retrieved
from http://www.p12.nysed.gov/cte/facse/course.html
Organization for Economic Cooperation and Development.
(2009). Promoting consumer education: Trends, policies
and good practices. Paris, France: Author.
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(2014). PISA 2012 results: Students and money: Financial lit-
eracy skills for the 21st century (Vol. 6). Paris, France: Author.
Ridge, J. (2006, June). The ideal high school graduate. Ameri-
can School Board Journal, 193(6), 64.
Sommer, C. (2012, November 21). Purchase power of global
teens tops $819 billion [Web log post]. Retrieved from
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power-of-global-teens-tops-819-billion/
Sternberg, R. J. (2007–2008). Assessing what matters. Educa-
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Good, 28/29, 59–166.

Point of View (continued from page 5)–Carolyn W. Jackson

• Maintaining Expectations: Contributions to Family – Family members help meet each other’s needs
and share in getting things done. Don’t you have assignments at your house on who sets the table and
who cleans up?
• Adapting to Challenges: Problem Solving – Family members work together to solve problems and deal
with challenges. An example is how to schedule mealtime together.
• Connecting to Community: Relationships with Others – Family members feel close to teachers, coaches,
and others in the community. Growing up, my family invited our teachers to dinner at the end of each
school year to express our appreciation to them as “unsung heroes” in nurturing my brother and me
with a good education.
The AAFCS webinar, “What Families Need to Succeed: New Research Identifies 21 Critical Assets,” is a
source for a greater understanding of this important family research study. Find it at www.aafcs.org/Devel
opmentCenter/Webinars.asp

Point of View (continued from page 6)–Beverly Card

Family and Consumer Sciences Day (December 3, 2014)

AAFCS had a very successful first annual Family and Consumer Sciences Day (FCS Day)—and it was
planned in just two months. More than 104,583 individuals were involved in 50 states, 17 countries, and
across all 7 continents. In terms of reach, this was the largest event ever planned by AAFCS and its mem-
bers. The AAFCS Board of Directors has designated December 3, 2015 as our second annual FCS Day, with
the theme, “Dining In.” Now is the time to begin planning your celebration. Can we double or triple par-
ticipation? It’s up to you to advocate for families and our profession!

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