Download General Education Course Proposal Finance 210 – Personal

General Education Course Proposal
Finance 210 – Personal Finance
Proposal
Offer Finance 210 – Personal Finance as a General Education elective under the Social Sciences
category.
FIN 210 – Personal Finance
Course description: Introduction to basic financial decision-making from the standpoint of the
individual consumer regarding spending, saving, investment alternatives, the use of consumer
credit, acquisition of transportation and housing, protection of assets through the use of various
types of insurance, goal setting, cash management, retirement and estate planning, tax planning,
risk management, and methods and skills to assist in resolving financial problems. Calculator
applications and computer software programs used in financial planning will be introduced. This
course also examines the purpose and operation of financial markets and institutions, the
economic impact of consumer financial literacy, the impact of global and economic influences
on decision-making, and the behavioral aspects of personal finance.
Rationale for proposal
The mission of the university includes educating people and improving the human condition,
fostering intellectual growth and career preparation, discovering and disseminating knowledge
and its application beyond the boundaries of the campus, supporting activities designed to
promote economic development of the state, serving the needs of the disadvantaged, and offering
an environment that meets the educational and personal needs of students.
As part of the university’s mission, it is important that students have the opportunity to receive a
sound foundation of knowledge in basic financial decision-making. Financial literacy is below
average for the majority of college students in the U.S. There are many basic, yet very important
financial concepts that are not understood by the younger generation.
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A 2008 survey on personal financial literacy among 1,030 full-time college students
resulted in a mean score of 62% on finance-related topics, barely a grade of D.
The study included students from every year. You would expect a college senior to
know more about personal finance than a college freshman. To an extent they did.
Seniors scored a 65%. Not a very impressive improvement.
Only 19.2% of college students feel that stocks are likely to have higher average returns
than savings bonds, savings accounts and checking accounts over an 18 year period.
84% of college students indicate they need more financial management education.
Approximately 33% of college students graduate with +$10,000 in credit card debt, in
addition to student loans.
Only 46.4% of college students reported that they had adequate financial resources to
finish a college degree once started.
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60% of students max out their first credit card within their first year on campus, starting
a cycle of unintended debt each year until graduation.
84% of college students have at least one credit card and 68% have charged items to
their credit card knowing they didn't have the money to pay for it.
32% of U.S. adults report they have no savings at all.
College students receive an average of 4 phone calls & 5 mailings a month encouraging
them to apply for credit cards.
2011 college graduates had a rate of debt that is 47% higher than their counterparts a
decade ago.
Standard of living is a function of financial resources (income and wealth) and the ability to use
those resources efficiently (financial literacy). It is disturbing that those with less resources and
education are faced with the additional disadvantage of not possessing the ability to use their
resources efficiently. Many believe that the recent financial crisis began with the sub-prime
mortgages that were marketed primarily to those with less income, education, and presumably
less financial literacy than those eligible for prime mortgages. History has shown that financial
literacy clearly has economic ramifications beyond those faced by the individual.
The University of Wisconsin-Superior – and many universities like it – continues to do a
disservice to its student body by graduating students who may be financially illiterate. A course
on financial literacy will provide students an option to acquire knowledge that will better prepare
them for life after college. I strongly recommend that UWS consider including a course on
financial literacy as a general education elective. The course being proposed is FIN 210 –
Personal Finance. The course has a writing component where students will be required to
demonstrate their ability to effectively communicate, they will be required to demonstrate their
critical thinking skills by making decisions based on uncertain and often incomplete information,
and they will be required to demonstrate the ability to use mathematical models and computer
software to solve problems.
Attached you will find a proposed course syllabus, department minutes, and copies of the
application form.
If you have any questions about the course or the proposal, please contact me at
[email protected] or 715-394-8229. I appreciate your thoughtful consideration of this
proposal.
Regards,
David Johnson
Associate Professor of Finance
Department of Business & Economics