Economics

New FINRA Study Shows The Need For More Personal Finance Education In Our Schools

FINRA Investor Education Foundation released its 2016 National Financial Capability Study (NFCS) and its findings show that while most Americans are growing more financially capable, there are still millions who struggle with making ends meet – particularly women, millennials, African-Americans, Hispanics, and those lacking a high school education. These findings are drawn from studies that go back to 2009 when the first survey was conducted. Subsequent surveys were conducted in 2012 and 2015.

Among the study’s most significant findings:

  • 56% of respondents with financially dependent children said that they have not set aside money for their children’s college education.
  • Hispanics and African-Americans are much more likely to use high-cost forms of borrowing like pawn shops and payday loans compared to whites—39 percent for African-Americans, 34 percent for Hispanics and 21 percent for whites; and
  • Only 37 percent of respondents are considered to have high financial literacy, meaning they could answer four or more questions on a five-question financial literacy quiz—down from 39 percent in 2012 and 42 percent in 2009.

Based on these findings, it is clear that CEE’s mission is crucial in closing the gap between those who are financially capable and those who are not. To learn more about how you can make a difference in your local community or state, visit our Survey of the States page and take action to help us ensure every student in the U.S. receives a personal finance education.

The survey’s full data set, methodology and related questionnaire are available at USFinancialCapability.org.

POSTED: July 15, 2016 | BY: Daniel Thompson | TAGS: , , , , ,

Post Campaign Round Up: #MySavingsStory

 

Natalie Zfat Headshot 1 300x300 Post Campaign Round Up: #MySavingsStoryLast month was Financial Literacy Month and we teamed up with social media entrepreneur, Natalie Zfat on the #MySavingsStory video campaign.

Throughout the entire month of April, we shared personal video stories from writers, artists and economists to inform and inspire kids to understand and take control of their financial lives.

We received savings advice from fashion designer Elie Tahari, best-selling author of Diary of A Wimpy KidJeff Kinney, entrepreneur Rosie Pope, President of the Richmond Fed, Jeffrey Lacker and others who shared what they’ve learned about the importance of financial literacy and saving.

Read Natalie’s post about the campaign and make sure to check out the compilation video with all the great advice!

POSTED: May 13, 2016 | BY: April Somboun | TAGS: , , , , , , ,

New Topic on EconEdLink: Election Economics

EconEdLink 1318  e1462302232555 New Topic on EconEdLink: Election Economics

The Council for Economic Education is pleased to announce the release of a series of lesson plans to help educators (grades 9-12) teach the election and economics in their economics, civics, government, and other social studies courses. The lessons are all available for free on our teacher website EconEdLink.

Topics covered include:

  • Can Election Futures Markets Be More Accurate Than Polls?
  • Voters and Elections (Who Votes and Why?)
  • Money and Elections, Economic Misery and Presidential Elections, and more

Throughout the summer, additional lessons will be added on important campaign topics as the campaign continues to unfold, and CEE will also be hosting a free webinar for teachers on how to incorporate these lessons into their classrooms.

To ensure that you receive information about upcoming webinars and new materials available on EconEdLink, you can register for free at the following URL: www.econedlink.org/register.

If you have any questions, please contact April Somboun.

POSTED: May 4, 2016 | BY: April Somboun | TAGS: , , , , , , , , ,

Graduating From Test Scores to Credit Scores

DSC6347Brian Page 8x10 hi res for print 150x150 Graduating From Test Scores to Credit Scores

Written by: Brian Page, Chair, Council for Economic Education Teacher Advisory Council

Later this spring, high schools across the country will be graduating students from a world of test scores to a world of credit scores. Many teens will unknowingly be making decisions that will impact them in the decade to come. Yet most lawmakers have fallen short of respecting personal finance as a dedicated subject worthy of stand alone classes required for graduation, taught by teachers trained to teach it well. It’s time we work together to advocate on behalf of high school students to prepare them for the real world.

High school science, math and language arts teachers receive content specific instruction in college, and are required to pass content specific tests to earn teacher certification. Personal finance… not so much. Often times when mandates are passed, they require the integration of personal finance into other coursework. The mandate is often dumped into the laps of teachers who have never been trained to teach personal finance.

A FINRA Investor Education Foundation-funded study, State Financial Education Mandates: It’s All in the Implementation, examined the effectiveness of state mandates on financial education for high-school students. The study noted that if a rigorous financial education program is carefully implemented, it can improve the credit scores and lower the probability of credit delinquency for young adults. In other words, we need to train our teachers, require semester courses devoted to personal finance, and use hands on teaching methods that focus on relevant content.

NCLB aside, our country has historically been a locally controlled education system. This changed following the financial collapse in 2008. Somehow a banking collapse led to education “reform”, and schools were faced with a multitude of new evaluation systems and testing requirements. Subsequently, schools and lawmakers now seem to lack the appetite to pass further education mandates. This should not preclude us from trying, using a common sense approach that does not further burden our schools. I’m confident that if asked, parents and teens would be much happier about recent reform efforts if standardized test scores were a little less important, and helping them build their own credit scores were a little more important.

POSTED: April 7, 2016 | BY: April Somboun | TAGS: , , , , , , , , , ,

CEE Teams Up with BloomBoard

“There are so many resources out there on how to teach and what materials to use. How do I narrow it down to get the best of what I need?”

 

If these thoughts resonate with you, then you definitely have to bookmark BloomBoard.  The educators at BloomBoard know that curation of relevant content is one of the most valuable services one can offer on the Internet.

Starting this month, BloomBoard has invited the Council for Economic Education (CEE) along with other experienced educators to create Collections of resources targeted to specific teaching objectives. As the leader of a national movement to bring economics education and financial literacy to every child, we know how to tackle the challenges involved in teaching these subjects to children in grades K-12.

For our debut Collection on BloomBoard, we decided to focus on teaching financial literacy to young learners in kindergarten through fifth grade. There’s good reason to start teaching finance early. Researchers have found that when elementary students study financial literacy, they develop more positive financial attitudes and behaviors such as saving that will continue throughout their lives.

Our Collection recommends teaching financial literacy with a wide range of resources including lesson plans, activities, songs, videos, professional development, and research.

Capture CEE Teams Up with BloomBoard

 

Here are some of the resources that we recommend in this Collection:

Getting Started: EconEdLinkJoin thousands of K-5 teachers successfully using these lessons to teach concepts such as the cost of choosing between “this and that” and how scarcity influences their world to young learners.

Kiddynomics: An Economics Curriculum for Young Learners Federal Reserve Bank of St LouisKiddynomics introduces young children to economic thinking with five lessons based on popular storybooks.

Playful Economics: Scarcity, EconEdLinkAward-winning 5th-grade teacher, Shanan Reigle, shows how she teaches scarcity in this instructional video. Students move from creating products with play dough to tweeting about their new understanding.

Creating a Classroom Economy Unit Plan by Beth Newingham, ScholasticStudents build a class economy replete with specific jobs, salaries, and currency. As class citizens, they must manage their money, using credits, debits, and checks.

Visitors to Bloomboard can save, share, and follow Collections. They will also be able to earn micro-credentials for their skills.

We would also like to introduce Buck Institute for Education (BIE) who posted the Collection, Gold Standard Project Based Learning: An Overview, on BloomBoard following ours. BIE creates, gathers, and shares high-quality Project Based Learning (PBL) instructional practices and products and provides highly effective services to teachers, schools, and districts.showing teachers how to use Project Based Learning in all grade levels and subject areas. Their comprehensive overview will help teachers get started with PBL.

We hope you will take a look at BIE’s Collection as well as others on BloomBoard. And, join us on BloomBoard in using and providing content that is relevant for our teachers today.

POSTED: February 17, 2016 | BY: April Somboun | TAGS: , , , , , ,

Effective Professional Development via CEE’s State Council and Centers

By: Marc A. JohnsonEducation Program Director, Colorado Council for Economic Education

Professional development (PD) for teachers has sometimes been characterized as unappreciated and ineffective. Those of us who have taught long enough can certainly recall mandated PD experiences that were less than engaging, uninspiring and downright tedious.

But it’s unfair to apply that broad brush to all PD. In our experience, both as recipients and deliverers of workshops and seminars from our respective state councils for economic education, PD can be stimulating and rewarding for teachers and have a strong chance of leading to greater student achievement.

Among the deliverers of PD in economics and/or personal finance, state councils and centers seem to be best suited to provide the best opportunities for teachers. The model varies from state to state, but there are commonalities. Most can boast a stable of credible academics whose guidance can be relied on by teachers – they can take this stuff back into their classrooms with great confidence in the integrity of the message. Second, most workshops help teachers with the pedagogy. Classes/workshops are generally infused with exemplary demonstrations of methods – often by mentor teachers who show us the best ways to teach this stuff to kids. Finally, most PD from state councils and centers includes excellent resources, often provided from the vast library of carefully developed and well-vetted lessons from the national Council for Economic Education.

It’s this three-tiered construction of PD – expertise, pedagogy and resources – that make targeted, customized PD by centers and councils for economic education well worth their while. Individual teachers, departments, schools and school districts would be well-advised to seek out their state councils/centers and explore the possibilities of participating in high quality, efficacious PD in economics and/or personal finance.

To learn more about your local state councils/centers visit: http://councilforeconed.org/resources/local-affiliates

 

POSTED: February 10, 2016 | BY: April Somboun | TAGS: , , , ,

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