According to data from the National Council on Economic Education, only seven states require high school students to take a course on personal finance. Eight other states require courses that include information about personal finance.
This came from a 2004 survey, which also found that only nine states test people on their knowledge of personal finances. These numbers are starting to change now that Missouri has joined the fray and will require a half unit of credit in personal finance for graduation in 2010.
The Jump$tart Coalition for Personal Financial Literacy did a national survey in 2004 to find out how much 12th graders knew about basic personal finance. Only 52.3% of the questions were answered correctly by the students who took the survey, which would be a "F" in most high school classrooms.
Financial ignorance is not just a problem for students. The NCEE says that half of the adults in the U.S. got a failing grade when they were tested on their knowledge of basic economic ideas.
But education gives people hope. The National Endowment for Financial Education has confirmed that spending and saving habits can be changed with as little as 10 hours of classroom instruction.
Because understanding money is important for personal success and good for society as a whole, American Century supports financial education.
The investment manager worked with a top education consultant to make classroom lessons called "Tips for Kids" and "Tips for Life." More than 3,000 teachers in all 50 states have used these programmes so far. The free programmes are sent to teachers through the Internet and shown at education conferences to help teachers use them in their schools.
American Century does more than just the Tips for Kids and Tips for Life programmes to help people learn about money. On its website, you can find free tools and materials to help you learn. The "Yes You Can..." book series by James E. Stowers, the founder of American Century, is meant to share the personal experiences and ideas that helped him become successful.
Students of today are the social, political, and economic leaders of tomorrow, so teaching them basic money skills will pay off in the long run.
