Pennsylvania Auditor General Tim DeFoor discusses having financial literacy courses in state schools during a recent visit to Martin Luther King High School in Germantown.
—TRIBUNE PHOTO/ABDUL R. SULAYMAN
Let’s say you get a large infusion of cash like the COVID-19 payout that was part of a $2 trillion package to stimulate the economy. Many were given a one-time $1,200 check per person (plus another $500 per child) for those who made less than $75,000 annually.
Do you use it to spend, save or pay off debt? Do you put it toward that big-ticket purchase you’ve been wanting? A big-screen smart TV, car, vacation or home renovations? Or do you have bills to pay? You could also put it away for a “rainy day.”
That decision lies in your basic understanding of your financial situation.
Recently, Pennsylvania Auditor General Tim DeFoor joined several educators, lawmakers and activists around the state to show how important it is to have financial literacy in the schools. DeFoor visited schools across the state to highlight what other places have done to better prepare students for future financial decisions.
“We have a generation of students who need to understand debt, know how to sustain wealth and learn how to be money smart,” DeFoor said.
During a recent visit to The Philadelphia Tribune, DeFoor noted that schools in Pennsylvania are not required to teach financial literacy and only a small number of school districts in the commonwealth have implemented financial literacy into their curriculum.
DeFoor said he is passionate about financial literacy being taught to adults, teachers and Pennsylvania students from kindergarten through 12th grade.
Financial literacy is crucial because it is one of the essential life skills that helps people make better financial decisions throughout their lives.
Some reasons it is important to teach financial literacy early in school are:
It helps emphasize the value of money and the importance of saving and investing money from a young age.
It teaches kids how to budget their money, so they can better manage their expenses, save for the future and avoid debt.
It encourages responsibility. Learning financial literacy promotes responsible behavior and accountability.
It builds confidence. Learning financial management skills can give kids confidence in money-handling and decision-making.
Overall, financial literacy is essential for kids because it prepares them for a future where they can make smart financial decisions, save money and create financial stability for themselves and their families.
“Having access to financial literacy curriculum in high school levels the playing field for all Pennsylvanians,” DeFoor said. “It’s imperative that our students have the tools they need to succeed in life, and if that means we need laws and regulations requiring schools to teach financial literacy, let’s work together to write those regulations and get legislation passed.”
Moreover, financial literacy fosters economic empowerment.
By learning about concepts like compound interest, risk management and retirement planning, students can make more informed choices that contribute to their financial security.
Lastly, financial literacy addresses societal issues related to debt, poverty and economic inequality.
Martin Luther King High School senior Abdourahim Sylla says participating in a financial literacy course over the last year has been “life changing” and made him feel much more confident in his financial future as he prepares for college.
“I urge schools across the city and the state to prioritize financial literacy education and give more students like me the chance to learn these valuable, necessary skills,” Sylla says. “I also urge students to take these classes seriously because it will change their lives.”
By arming students with the knowledge and skills to manage money effectively, we can empower them to break cycles of poverty, avoid predatory lending, build generational wealth and make responsible financial decisions that positively impact their lives and communities at large.
Reprinted from the Philadelphia Tribune
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