Obama Administration Seeks To Improve High School Financial Literacy

This is REALLY important. I’m so glad they’re doing this. I only wish the program was around when I was in high school, b/c goodness know it would’ve done me some good.

econ 101: fantastic. really. but somehow i get the idea that our ceo in chief never had an econ class in his life. maybe he sat in the back reading rules for radicals” during the lectures.
oh, another thing: i wonder if geithner could take a course on turbo tax in the new year, like in time for him to do his ’09 taxes.

..”making sure our students graduate from high school with a better understanding of…risks associated with debt..”
The wolves are out there. For example, Bank of America’s has an $8.4 million, seven-year contract with Michigan State giving it access to students’ names and addresses and use of the university’s logo.
This is a common practice at schools across the country. Kids are not only going into debt for the cost of college, they are inundated with marketing for credit cards on campus.

Posted by: jennifert7 | Dec 15, 2009 5:55:52 PM posted “I hardly think they are suitable teachers of finance for our children.”
Did you actually read that this is a joint effort by Treasury and the Department of Education? Do a quick search on Arne Duncan. He launched a public elementary school built around a financial literacy curriculum.
Can’t even the people who loathe Obama at least get behind a program that’s good for all our nation’s kids? Jeeze.

Can’t even the people who loathe Obama at least get behind a program that’s good for all our nation’s kids?
Posted by: CenterOne |
There was tremendous support for the D.C. Parents for School Choice program. And it worked too. The people who love Obama killed it.

Great idea but its implementation has much to be desired. The new Gov’t sanctioned textbook for example starts like this:
Chapter I. BOURGEOIS AND PROLETARIANS
The history of all hitherto existing societies is the history
of class struggles….

“There was tremendous support for the D.C. Parents for School Choice program. And it worked too.”
Not according to an independent, rigorous impact evaluation after 3 years…
Posted by: CenterOne |
A U.S. Education Department study released 4.3.2009 found that District students who were given vouchers to attend private schools outperformed public school peers on reading tests.
Four consecutive studies from Georgetown University
and the University of Arkansas found:
»» Parents are very satisfied and are more involved in their children’s education.
»» Parents reported improved communication with their children.
»» Children have an improved attitude toward learning, increased self-esteem and enthusiasm towards school.
The Institute for Education Sciences at the Department of Education is also studying the program using the most rigorous research design.
»» After 3 years, students who received a scholarship have higher reading test
scores than students who did not receive
a scholarship.
»» Parents are very satisfied — especially with safety.
»» OSP students attend schools that are more integrated and have smaller class sizes.
»» An additional study will be released in Spring 2010.

Given this history, one might think there might possibly be a reason for educating our population about the benefits and risks associated with debt.
Posted by: CenterOne |
I think Washington has been educating us all. For instance we learned what moral hazard is.

Posted by: Foghorn Leghorn | Dec 15, 2009 7:34:53 PM posted “for instance we learned what moral hazard is”.
Moral hazard is defined as a special case of “information asymmetry”, where one party in a transaction has more information than another. Like the financial institutions who have contracts with Universities for their students addresses. Or inner city kids who don’t understand how interest works.
How is educating the next generation about becoming more responsible with debt somehow “bad”?

They can use the impending Obama debacle as a case study!

I think this is a terrific idea. I know our school district requires civics and econ for graduation. It would also be beneficial to be proficient in simple skills like balancing a checkbook, budgeting and basic accounting.

I’m all for it if all members of this administration will be required to take it and pass.
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Me, too though I’d want to make sure Congress could pass it as well, particularly the minority party as they have shown a reckless ignorance of economics as well as monetary, fiscal and domestic policy. All they seem to know is how to pay right wing ideology lip service in catchy sound bites, often missing the contradictions and hypocrisy in their own rhetoric. Turns out so-called conservatives aren’t all that darned conservative (unless a Democrat is president and it gives them an opportunity to be contrary and grossly unpleasant.)

This is such a farce…how could any one person continue to fall for this baloney.
It’s all about the pay out to cronies with OUR money. It’s no different that the inner city caulking/weatherstrip programs….there is no accountability , the money is just being thrown around to buy 2010/2012 votes.
Hey, heard the latest? 80,000 pediatric H1N1 vaccines recalled?
Of course we (my county) still haven’t had any vaccine, so no worries…
wonder how much that debacle cost us…
It’s like this administration cannot execute ONE good policy.

The federal government has no business wasting time and money trying to run local schools.
We have school boards.
The feds need to butt out and stick with their Constitutionally mandated mission.
Obama wants to recover from his falling poll numbers, and what better way than to ‘do something for the children’.
Is Obama saying we should teach that it was a horrible idea for Clinton to mandate banks fulfill quotas for writing subprime loans in specified zip codes?
No? well, what a surprise
Is Obama saying that we should teach it’s dangerous to cause a run on one of the nations largest banks a la Chuck Shumer?
hmmmmmmm, I’m shocked that’s not in there.
This is just political posturing by Obama, like when he demanded that he should be allowed to give a speech to all the schools in September.
He’d like to sway enough votes in the high schools to get re-elected.

like Tiger Woods mandating marital fidelity.
Posted by: Chuck | Dec 16, 2009 9:19:09 AM
I like the latter part of the analogy but you have the wrong folks inserted at the beginning!
The Center on Budget and Policy Priorities released a report today, which provides an analysis the current deficit in detail, and what factors created it. Why do I suspect that Republicans and their tea party base (despite their claims of “independence”) won’t pay any attention or learn a thing?
Nevertheless, a passage to google:
“Some critics charge that the new policies pursued by President Obama and the 111th Congress generated the huge federal budget deficits that the nation now faces. In fact, the tax cuts enacted under President George W. Bush, the wars in Afghanistan and Iraq, and the economic downturn together explain virtually the entire deficit over the next ten years….”
So, Republicans embraced and pushed policies that are responsible for most of the deficit and those same politicians and their parrots are now complaining and showboating about that deficit, pretending to know what should and should not be done.
IMHO, its the Republicans who have no credibility on fiscal issues. None.

Funny that this report about sound financing principles doesn’t mention how much money will be spent on this program, how will it be paid for, how much is each “grant”, and how much does each school receive?
My own question: Just how many more programs can Obama stuff into paying off one of his top Special Interests, the teachers unions?
And if you don’t think unions are the most powerful Special Interest in America, look at this chart:
bit.ly/7ayoEn

“It appears conservatives think our nation should do away with all government intervention in our children’s lives…”
It appears you don’t understand the concept of our kids getting STUPIDER by the year. Despite more federal guidelines and record amounts of money being spent on education (close to $20,000 per pupil in DC!).

Carol | Dec 16, 2009 1:13:04 PM posted: “Just how many more programs can Obama stuff into paying off one of his top Special Interests, the teachers unions? And if you don’t think unions are the most powerful Special Interest in America, look at this chart.”
Teachers Unions are “the most powerful special interest”? According to the Senate office of public records, over the past 10 years the sector spending the most on Lobbying was Finance, Insurance and Real Estate, then Health, and other businesses. Labor was at the bottom of the list.
The link you posted to a article quotes Labor Secretary Hilda Solis: “We are committed to ensuring that workers are paid a fair wage, have a voice in the workplace, are provided a safe workplace and have a secure retirement.”
A)Why is that so frightening? and
B) How is using teachers to educate American kids about financial literacy somehow a waste of taxpayers money?
And talk about paying off Special Interests….where was fiscal conservative outcry as our country wasted Millions over the past 8 years teaching failed “abstinence only”?

And talk about paying off Special Interests….where was fiscal conservative outcry as our country wasted Millions over the past 8 years teaching failed “abstinence only”?
Posted by: CenterOne |
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That was never taught at my kids high school. They were taught that it was the only 100% way to avoid pregnancy, which is accurate.
My beef is with the drug prevention class which actually exposed the kids to drug use they were unaware of. It was pot is bad, wink, wink, nod, nod coming from the stoner teacher. It was infuriating. There has been an explosion of drug use at our high school. Heroin and prescription drug use is the new problem.

There is NO LACK OF INFORMATION on personal finance. Ever heard of a book store? A library? The radio? The internet? Common sense? Young adults are idiots about finance because their parents are idiots about finance and CHOOSE TO BE.
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Mary, I’m a conservative too, but I truly feel we need to educate those who are less fortunate then us. It is the schools job to teach these children to be contributing members of our society. If they are not receiving practical knowledge from home on personal financial responsibilities and how to conduct ones self responsibly in an adult world I hope the education they receive will fill that void.
Honestly, I worked in a school from a poor area. They were terrific kids. They needed guidance from people that cared about their future. Many of them were not receiving that at home.
A good education for all our children will only make our country better.
I just think practical financial knowledge should be incorporated in grade school math texts through high school work. When you can apply what you’re learning to everyday life situations it makes it more interesting and you can understand its value.

Posted by: Mary | Dec 16, 2009 4:07:05 PM posted “I have followed this advice and teach it to my kids.”
Good for you. Unfortunately, not all children are lucky enough to have educated parents who home school them about financial responsibilities. According to studies by economist James Heckman, the reason US academic achievement peaked in the late 60s is because of deteriorating family environments.
Some lucky kids are bathed in an atmosphere that promotes responsibility and education, but increasingly over the past 40 years more and more are not. Who cares? We all should – this threatens our nation’s future in a global economy.
Today simply telling people to listen to radio advice or use common sense isn’t enough to get all our children educated. Heckman says it’s not globalization or immigration or lack of libraries that widens the inequality in our society – it’s when education falls behind the speed of technology – and the financial world has become increasingly technical.
Regardless of where your politics falls, everyone in America will benefit from better fiscal education – more tax payers, more innovation, stronger competition and less government handouts.

Students too ;-)

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