The Time Has Come to Make Financial Literacy a Requirement
to Graduate from High School

by Dr. Allen Cox

Most students who will graduate from high school this year have not been taught basic money management skills. This lack of financial literacy reveals itself soon after our students graduate. They rack up excessive credit card debt, they have problems paying bills on time and they aren't saving enough money. These poor economic choices affect their  ability to build wealth. Many parents, reluctantly, have to allow their adult offspring to return home as "boomerang kids," because the children have not learned  how to financially make it on their own. Overwhelming evidence of financial literacy problems can be found at www.mdfinancialskills.org

Most school policy officials will admit that the lack of financial literacy is a problem, but that they have need to be more concerned with their schools making "Adequate Yearly Progress" in reading and math. Getting their high school students to pass all of the state required High School Assessments is vital. Maryland students are actually succeeding in those areas nicely, so why not tackle financial literacy now?

Many high schools offer a schedule that enables students to earn almost all of their high school  required credits by the time they finish their junior year. Several  Maryland school systems have recently increased the number of credits to graduate above the number required by the MSDE. This enables county school systems to require their students to take additional courses before they graduate. What a perfect moment in time to  bring in financial literacy. Why should our kids have to learn personal finance in the "School of Hard Knocks?"

Parents, are you aware of what the school is doing to prepare your child for the financial realities they will face? School administrator, do you have in place a curriculum which insures that all students who receive a diploma are equipped with the financial and personal money management skills and knowledge they need to make excellent economic decisions? The benefits of graduating from high school with a firm grasp of basic financial literacy are, as the commercial says, "priceless." Ironic, isn't it, that those words are from a credit card company? The time has come for students to learn financial skills and knowledge that so often separate the "haves" from the "have nots."

Does your youngster know:

* The importance of using credit wisely?

* The wisdom of paying more than a minimum payment if carrying a balance on a credit card?

*Realize that a credit score can make a huge difference  in how much interest one is charged, whether or not they get certain jobs and whether or not  they can obtain insurance?

* How to avoid fraud and identity theft?

*The importance of a budget?

* The importance of saving?

* Tax consequences of buying versus renting?

* Buying versus leasing a car?

* The need to have a serious conversation with a potential mate about money before marriage?

Now is the time for all good men (and women) to come to the aid of their children! May your holidays be merry and (b)right, financially.

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