Teaching Financial Literacy: Why Credit and Taxes Deserve a Place in Public School Curricula

Introduction to Financial Education in Public Schools

The current educational system in America lacks an essential component: comprehensive financial literacy. Education systems typically focus on core subjects such as reading, writing, and mathematics. While these foundational skills are crucial for personal success, financial literacy, including understanding credit and taxes, is equally important. Provided with the freedom to design a high school elective on personal finance, I designed a curriculum that not only covered these aspects but also engaged students in practical applications.

Personal Finance Education in Action

I developed a semester-long elective that included six classes on tax. The curriculum was flexible, allowing me to create engaging and practical assignments. Some of the key projects included:

Planning road trips to different destinations to compare costs Comparing the costs of community college to a 4-year college Understanding the personal take-home pay for minimum wage jobs Completing a 1040 tax return for minimum wage income Setting up online shopping accounts and planning purchases Finding out how to apply for a bank account Figuring out how to buy a car for $8,000 and working out a budget for it Learning the value depreciation of a new car through Blue Book Exploring credit card debt through a hypothetical scenario Creating a budget for sharing an apartment with three other people Discovering the cost of a GED at 23

The core assignment was to develop a budget for life for the next 60 months, considering changing needs and shifting financial sources, including transitioning from parents to self-funding.

Benefits of Financial Literacy Education

A personal finance elective can provide numerous benefits beyond just academic credits, such as:

Enhances future planning: Students learn to plan for major life events, such as college, jobs, and retirement. Promotes independence: Understanding credit and taxes helps students become more self-reliant. Improves decision-making: Financial literacy helps students make informed choices and evaluate risks effectively. Broadens career opportunities: Knowledge of personal finance can prepare students for a variety of career paths, including business and finance.

The class proved to be successful, with parents even expressing interest in enrolling.

The Current State of Financial Education

While some districts in America do offer personal finance classes, many do not. This raises questions about the prioritization of curricula and whether system resources are being distributed effectively. Here is how it stands in America:

Reading, Writing, and Math – The core educational focus.

Tax Filing – Although basic tax filing skills are taught, with the advent of electronic filing, the complexity of tax codes (around 75,000 pages) often overwhelms educators who are not specialists in the field.

Advocating for Change

If you believe in the importance of financial literacy but are not getting the services in your district, here are steps you can take:

Write a proposal to your school board detailing the need for a personal finance class. Engage community leaders such as local business owners, financial advisors, and parents to support your proposal. Survey students and parents to gauge interest and demand. Collaborate with local universities or financial organizations for guest speakers and resources.

The key is to demonstrate the value of financial literacy and make a compelling case for its inclusion in the curriculum.

Conclusion

The absence of a comprehensive financial literacy curriculum, particularly in credit and tax education, is a significant gap in the American educational system. By advocating and creating these programs, we can empower students to make informed financial decisions and build a more financially savvy society.