Research

A Call to Business Leaders

By: DAN SCHULMAN, President & CEO, PayPal 

PayPal is committed to democratizing financial services to enable all people to join and thrive in the digital economy. Whether here in the US or around the world, we believe everyone should have access to the affordable, convenient and secure financial products and services they need to improve their financial health, support their families, contribute to their communities, and invest in their futures.

But access is only part of the equation – another critical part is education. Economic and financial literacy is a foundational element to achieving financial health and needs to be included in early education programs. We have seen firsthand that improving the financial health of individuals has powerful ripple effects across families, communities, companies, and economies. And that process starts in the classroom.

Financial inclusion and financial health are problems that we can solve in our lifetimes if we truly understand the causes and challenges, and commit to partnering across the ecosystem to fix the gaps that exist in the traditional financial system. We can make a difference by forming deeper bonds between the public, private, and social sectors to develop new curriculum and educational models that foster and encourage financial literacy and understanding from an early age.

This op-ed was published in the Council for Economic Education’s 2018 Survey of the States.

POSTED: February 13, 2018 | BY: Daniel Thompson | TAGS: , , , , , , , , , , , , , , ,

2018 Survey of the States Reveals Slow to No Growth in K-12 Personal Finance and Economic Education

Now in Its 20th Year, Council for Economic Education Study Highlights Wide Gaps in Financial and Economic Education Throughout U.S. States

 

A 2017 study from the American Psychological Association reveals that money is the second leading source of stress in the United States, and the National Institute of Mental Health estimates that 40 million Americans suffer from anxiety, which financial woes can easily trigger. Yet, according to Council for Economic Education’s (CEE) 2018 Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools, financial independence may be out of reach for many because K-12 students are not receiving adequate tools and training to make informed financial decisions; only one-third of the U.S. states require high school students to take a course in personal finance, while less than half require them to take a course in economics before graduating.

Now in its 20th year, Survey of the States findings indicate that progress has been achieved, yet gains have slowed in recent years. CEE will unveil the full results at an event today at George Washington University in Washington, D.C.

Research shows that students in states that require financial education have higher credit scores as well as more responsible spending habits and are less prone to compulsive shopping, reducing their financial risk greatly. However, 2018 Survey of the States findings reveal:

  • The number of states that require high school students to take a course in personal finance (17) has not changed over the past four years.
  • Since 2016, there been no change in the number of states which include personal finance in their K-12 standards and require those standards to be taught.
  • 22 states require high school students to take a course in economics—less than half the country but two more states than in 2016.
  • There has been no change in the number of states that require standardized testing of economic concepts since 2014.

“When we initiated this survey in 1998, only one state required enrollment in a personal finance course while 13 required enrollment in an economics class, so clearly we’ve made some gains. Michigan, Georgia, Utah and Texas are leading the way by requiring personal finance and economics courses to be offered and taken, as well as by implementing state standards and standardized testing,” said Nan J. Morrison, President and CEO of the Council for Economic Education. “However, the majority of U.S. states are failing our students by declining to offer these fundamental courses which are critical to their financial stability and security later in life.”

CEE conducts The Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools every two years. The report collects data from all 50 states and the District of Columbia, and includes commentary from experts and educators in the field to provide a comprehensive look into the state of K-12 economic and financial education in the United States.

The 2018 Survey of the States is available for download at: www.councilforeconed.org/surveyofthestates 

About the Council for Economic Education

The Council for Economic Education (CEE) is the leading non-profit organization in the United States that focuses on the economic and financial education of students from kindergarten through high school—and we have been doing so for nearly 70 years. We carry out our mission by educating the educators: providing the curriculum tools, the pedagogical support, and the community of peers that instruct, inspire, and guide. All resources and programs are developed by educators, and delivered by our national network of affiliates. Our goal is to reach and teach every child. Each year CEE’s programs reach more than 55,000 K-12 teachers and over 5 million students across the United States. EconEdLink – our free, online educator gateway for economic and personal finance lessons and resources – attracts more than 1 million unique visitors annually.

Media Contacts:  

Lisa Fels Davitt
lisa@successioncommunications.com
(973) 886-1917

Kate Alexander
kate@successioncommunications.com
(201) 638-3946

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POSTED: February 8, 2018 | BY: Daniel Thompson | TAGS: , , , , , , , , , , , ,

FINRA Releases 2012 National Financial Capability Study

Overwhelming Majority of Americans Believe Financial Literacy Should be Taught in Schools

The FINRA Investor Education Foundation (FINRA Foundation) released the results of America’s State-by-State Financial Capability Survey. The survey findings are available at www.usfinancialcapability.org, which features an interactive map of the United States, and allows the public, policymakers and researchers to delve into and compare the financial capabilities of Americans across all 50 states and the nation as a whole.

The 2012 Survey asked respondents whether they thought financial education should be taught in schools. An overwhelming majority (89%) of respondents said yes, indicating strong support for increased school based financial education.  As of June 2013, only 16 states require that some sort of personal finance education be offered in high schools and only 15 states require that course for graduation. The Council for Economic Education is working with state affiliates to increase these numbers so that more students have exposure to this important topic as part of the required curriculum. Read more…

POSTED: June 17, 2013 | BY: admin | TAGS: , , , , , , ,

Are Today’s Teens at Risk of Becoming Tomorrow’s “Basement Generation?”

Jack KosakowskiBy Jack E. Kosakowski, President and Chief Executive Officer of Junior Achievement USA.

In the next couple of months, millions of American teens will be graduating from high school. There was a time when this meant many kids would go off to college, get a degree and start a career. But in recent years, for a variety of reasons, including a sluggish economy and the growing skills gap in the American workforce, many kids are heading back home to live in mom and dad’s basement after receiving that college degree. A reality reinforced by recent assessments of Census data by Pew Research Center showing that more than one-in-four adults between the ages of 25 and 34 had moved back with their parents at one time or another during the “Great Recession.” Read more…

POSTED: April 26, 2013 | BY: admin | TAGS: , , , , , , , ,

The Nation’s Report Card: Economics 2012, Grade 12

Live Webinar: The Nation’s Report Card: Economics 2012, Grade 12
April 24, 2013, at 11 am EDT

Register here (we encourage you to submit a question in advance through the registration page). Join the conversation on Twitter by using #NAEPtalk during the webinar.

Nan J. Morrison, President and CEO of CEE, was an adviser on the project, and she will take part in the webinar.

Are American students equipped to negotiate economic realities?

With constant changes in the housing, job, and stock markets, not to mention international trade, American students more than ever need to know how our economy connects with the world around us. As tomorrow’s consumers, investors, and voters, are students equipped to interpret financial news, make decisions about negotiating a college loan, and understand how economic policies affect their wallets?

The Nation’s Report Card: Economics 2012, Grade 12 reveals how well 12th-grade students know and apply the concepts of microeconomics, macroeconomics, and international trade in real-world contexts, as measured by the National Assessment of Educational Progress (NAEP).

Join the National Assessment Governing Board for a webinar exploring the results of this timely report. Webinar panelists include Nan J. Morrison, CEE’s President and CEO; and Edward Alvarez, Assistant Principal, Thomas A. Edison Career & Technical Education High School, who was honored at the 2012 Visionary Awards as one of CEE’s Teacher Champions.

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POSTED: April 22, 2013 | BY: admin | TAGS: , , , , , , ,

Do the Math

William Coffin, Chairman of the California Council on Economic Education, in the Los Angeles Business Journal, says schools must rewrite curriculum to include financial literacy to provide students with crucial skills.

Financial literacy is a critical life skill. Ask any one of the tens of millions of Angelenos impacted by the $7 trillion decline in the value of household wealth starting in 2008, which was at least in part caused and sustained by basic misunderstandings of personal finance and a lack of economic thinking, and the answer is a resounding, “Yes, financial literacy is important.”

Read the full story here.

POSTED: April 15, 2013 | BY: admin | TAGS: , , , , , , ,

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