Download Article-Right on the Money

Article-Right on the Money
More schools are now offering personal finance classes that teach students
about managing money.
MIAMI, Florida; Every day after school, Phyllis Quach goes to a warehouse brimming
with silk flowers, stuffed animals, and various other gift items that her parents sell through
their South Florida wholesale company. Helping with the family business allows the 17year-old to learn valuable lessons about business finance. One such lesson is that a
recession, like the one that has gripped the U.S., makes the challenging task of running a
business even tougher. Phyllis greeted the challenge as an opportunity, signing up for a class
in personal finance. In recent years, an increased number of high schools have started
offering such courses—and they have been well received by students.
According to the Council for Economic Education, the number of states requiring public
high schools to offer a personal finance course rose from 9 to 15 between 2007 and 2009. In
fact, 13 of those states have made the course a graduation requirement, up from 7 in 2007. In
these classes, students learn about spending and saving money, balancing a budget, and
managing credit. They also learn various aspects of purchasing a home, including making a
down payment and selecting a loan.
"[We need to ensure that] students graduate from high school with a better understanding of
basic economics, basic finance, and the benefits and risks associated with debt," said U.S.
Treasury Secretary Tim Geithner. The increased focus on teaching personal finance to all
high school students is a departure from models of the past. Many schools used to teach the
subject as a chapter of a home economics course—if they taught it at all.
"It was not seen as a necessary life skill," said Jim Hedemark, executive director of Rhode
Island Jump Start Coalition, which promotes financial literacy among young people. "It was
sort of seen as the kind of thing that should probably be learned in the home. “As a result,
many students simply picked up the spending patterns of their parents—good and bad.
Meanwhile, personal finance, from maintaining a credit card to purchasing a home, became
more complicated. “A good place to start...is the high school level. That's where younger
people start to become more financially independent," said Senator Scott Frantz. Frantz is
pushing for legislation to require public high school students to learn about the basics of
home mortgage lending and the pitfalls of accumulating debt.
In some schools, however, lessons in personal finance begin well before high school. John
Doyle is an administrator with Miami-Dade County Public Schools. Doyle says that his
district's social studies classes have economics lessons at every grade level. In kindergarten,
lessons begin with discussing needs versus wants. "You do things that are age-appropriate,"
Doyle said.
Squeezing in a separate personal finance class can be a challenge, however, as schools focus
on state and federal testing standards while dealing with budget constraints. As a result,
many schools continue to teach personal finance as part of another subject, rather than as a
separate course. And as schools opt to incorporate personal finance lessons into their
courses, students are grateful to receive such practical information.
"I wish that every kid that goes through high school had the same opportunity to take this
class," said student Yoel Torres, 17. Torres wants to learn to manage the money he makes
working at Little Caesars Pizza. Young people's eagerness to learn good money management
skills may be a result of the recent recession, which has impacted many families. According
to experts, the recession's length and severity could affect students' lifelong financial
behavior. It could make them more aware of their financial resources, just as the Great
Depression affected their grandparents' and great-grandparents' frugal generation.
"The students are hungry for this information. They see what is going on in their own
home," said John Parfrey of the National Endowment for Financial Education (NEFE).
Parfrey directs the NEFE's financial planning program for high school students. Amy
Broekhuizen teaches a high school personal finance class in Michigan. Broekhuizen has also
noticed that more teens are eager to learn money management skills. Students frequently ask
her about how to start a 401(k) retirement account—something she was not asked about
three or four years ago. Today, Broekhuizen teaches personal finance to 180 students,
double the number that she taught five years ago. “They’re realizing how important it is to
manage their funds," Broekhuizen said.
The Associated Press contributed to this story.
Dictionary
constraint (noun) something that limits something else
frugal (adjective) spending little in order to save money
incorporate (verb) to include in something that already exists
recession (noun) a period during which there is a tremendous slowdown in business activity
and a serious decrease in the amount of money earned and spent
severity (noun) the seriousness of something