January 10, 2006
Financial literacy education

State Senate Democrats have introduced SB 6219 "Providing for financial literacy education [for public school students]"

"Financial literacy" means the achievement of skills and knowledge necessary to make informed judgments and effective decisions regarding earning, spending, and the management of money and credit.
I agree that high school graduates would be better equipped for the world if they knew more about money and finance. But financial literacy is unattainable to those without basic mathematical skills, the teaching of which is a more urgent priority. Besides, the idea that the legislature's anti-business Democrats, who are responsible for out-of-control spending and the foolish mismanagement of the state's public pension system, have any credibility when it comes to making "informed judgments and effective decisions" about money is just plan laughable.

The bill, by the way, is not accompanied by any cost analysis.

Posted by Stefan Sharkansky at January 10, 2006 03:00 PM | Email This
Comments
1. Teaching financial literacy is beyond Washington's teachers, except possibly at the more affluent high schools. I remember a teacher telling me she was voting for Dukakis (this was awhile ago) because "he was going to lower the interest rate" so she could buy a house.

Stefan, how can you expect a member of Washington's teacher cadre to be able to teach any financial skills when most have no clue as to the very basics of finance, to include what the Federal Reserve does? Washington's teachers are poorly equipped to wander into this area without adult supervision.

Posted by: Libertarian on January 10, 2006 03:34 PM
2. It was about 10 years ago now and the business community was brought into the schools to help set curriculums for the students. We all know that future CPAs, for example, need lots of math. So, we helped the teachers set up what classes to take.

In my school, we got the teachers griping. Kids can't even balance their checkbook when they get to high school. Shouldn't that at least me a minimum?

And then one teacher very sheepishly looked up and said- "wait for ten year because we are really addressing basic math in the grade schools".

Now, you guys tell me that it ain't happening.

Posted by: swatter on January 10, 2006 04:08 PM
3. Better that they should just be dumb, right, Stefan, so they can go get payday loans or something, right?

If you think education is expensive, try ignorance. If the R's had proposed it, you'd just say too bad the dumb D's won't approve this because the R's proposed it.

Either it's a good idea or it isn't. Which is it?

Posted by: Ivan on January 10, 2006 04:32 PM
4. Ivan:

Let me clear this up for you-- it's a bad idea. (So-called "Public Education" is also a bad idea, but that's another topic.)

Posted by: libertarianobserver on January 10, 2006 04:38 PM
5. Ivan, are you still alive? I thought you had retired.

Ivan, the idea is a good idea, except it only takes about an hour to teach the basics. The rest is all practice, practice, practice. Kind of like sex education.

Posted by: huckleberry on January 10, 2006 04:39 PM
6. What's worse than Dems teaching finance?

GOoPs teaching the Constitution! Yoinks!

Posted by: BigTime on January 10, 2006 04:49 PM
7. Ivan, you completely missed the point. That's like trying to teach someone to be a NASCAR driver before they ever know how to drive. You can't teach more complex financial matters to someone if they don't have a grasp of basic math. It's putting the cart before the horse.

BigTime, that was just plain stupid.

Posted by: Mike H on January 10, 2006 05:01 PM
8. Mike H:

Sorry, but you are the one who is missing the point. Please consider: Students get to high school. They might have jobs. They might have a need for disposable income. They might have learned basic math skills, and they might not have learned them.

But with adulthood and personal responsibility looming, suddenly even students who might not have taken math seriously now have all the motivation in the world to do so. Should we then deny them? These are real-world skills we're talking about here, not some moonbat holistic concept.

Huckleberry is on the right track to say that it takes practice, practice, practice. But today's world of consumer finance requires somewhat more than "an hour or so to teach the basics," especially for kids who have not faced these decisions before.

Not all financial decisions are complex. They vary. Would you promote ignorance, then?

Posted by: Ivan on January 10, 2006 05:16 PM
9. I'd be happy if high school graduates could conjugate the verb "to see" and get through 15 minutes of conversation without a "like" or "yuh know".

Posted by: Huey on January 10, 2006 06:02 PM
10. What a hoot! Introducing a financial literacy bill with no cost analysis. That just about says it all. These bozos need to attend one of their own proposed courses in financial literacy!

Posted by: katomar on January 10, 2006 06:16 PM
11. Dems create problem. Dems work to repair it.

GOOPERS create problem. GOOPERS say "what problem?"

See the difference?

Posted by: 666 on January 10, 2006 06:20 PM
12. Maybe we should encourage a TWOFER? Let's give 5-8th graders a math class computer gaming training. All kids start with the same amount of money, but they lose funds for math/check balancing errors.

In high school, we could apply the same deductions and reward savings and investment.

Posted by: Gary on January 10, 2006 06:24 PM
13. Would you promote ignorance, then?

No, but I would teach them to do basic math before teaching them how to balance a check book or figure interest rates. There's no point in teaching them how to balance a check book if they don't understand the basic math needed to do it first.

All I'm saying is you have to learn to walk before you can run.

BigTime/666/J. Abrahmoff/headlice/or whatever your name is... that was still mindless drivel of a 4th grade level.

Posted by: Mike H on January 10, 2006 06:45 PM
14. Teaching financial literack skills??? If that were done for real, students might have enough education to question "liberal math". It will never happen.

Posted by: Fed Up on January 10, 2006 06:51 PM
15. Mike H.

All people learn at different rates and in different ways. Some people don't "get" certain data points, or frames of reference, or concepts, or make certain connections, till later in life.

I'm only saying that many financial decisions are based on nothing more than basic arithmetic, and you never know which kids are going to grasp a certain idea at a certain time. It simply isn't predictable, and in my experience, it just isn't as linear as you seem to think.

It just isn't right to say that because some kid didn'tl earn A at a certain time, that therefore he can't learn B till he learns A. Learning doesn't always occur in the sequence that you might expect.

If we can use personal finance education to reach kids in school who might not learn it in any other way, I say go for it. This isn't a "left" or "right" thing. This is our kids, and our kids' friends, we're talking about.

Posted by: Ivan on January 10, 2006 07:27 PM
16. There is a "Pass 'Jessica's Law' Rally" in Olympia this Friday, Jan. 13

Posted by: sgmmac on January 10, 2006 09:09 PM
17. swatter: cpa's don't need lots of math. they need to add, subtract,multiply, divide and figure percentages. so, why did you say :"we all know future cpa's need lots of math", when they don't? it makes all your pronunciamentos suspect because you lack common sense.

Posted by: clay shaw on January 10, 2006 09:29 PM
18. AT LEAST OUR KIDS WILL BE ABLE TO FIQURE OUT HOW MUCH IT WILL COST TO SUPER-SIZE!

Posted by: TACOMA PHLASH on January 10, 2006 09:30 PM
19. cpa's don't need lots of math. they need to add, subtract,multiply, divide and figure percentages.

Ummm... you do realize you just contradicted yourself, don't you?

Posted by: Mike H on January 10, 2006 09:50 PM
20. Ivan,

Where are the parents? My children had jobs and they had a checking and savings account by the time they were 12 years old. Half of what they earned or received as a gift was put into a savings account and they balanced those accounts every single month. They earned enough to buy a few shares of stock and were able to buy their own cars and pay for a few semesters of college themselves.

Again I ask, where are the parents here?

Posted by: cc on January 10, 2006 10:45 PM
21. Clay:
Sorry to disappoint, but adding, subtracting, dividing, multiplying, and figuring percentages IS A LOT OF MATH to most of the students in our high schools. Most of them JUST CAN'T DO IT. And most of them can't spell or even speak coherently. Listen to them. As stated in one of the posts above, you cannot have a conversation with them without the liberal use of "like" and "I mean" and "you know". I listen to taped depositions all day, every day, and every one of them invovling a teenager or person in their early 20's is full of this nonsensical, unwieldy, uncommunicative style of communication. One tape, just ten minutes long, had a young fellow using the word "like" 187 times, and it kept him from communicating anything of value! And that's not unusual. Until we demand some very basic educational standards,and unless we provide these kids with a classical educational foundation, the output from our schools will remain substandard. And if these kids can't even talk, maybe they should wait a while before they get a check book!

Posted by: katomar on January 10, 2006 10:47 PM
22. Words from Queen Gregoire's "Health of Washinton" speech today:

""I know some of you want to cut taxes. So did I.""

So Did She.....So Did She......


HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA


And she want's to teach financial management to our children.

My kids will continue in private schools thank you!

Posted by: GS on January 10, 2006 11:01 PM
23. You refer to the Democrats' "foolish mismanagement of the state's pension system," and link to the Select Committee on Pension Policy's Gain-Sharing Study Be aware that gain-sharing was adopted in 1998, when Republicans had majorities in both House and Senate. Blame for it is widely shared, as there was exactly one vote against it among the 147 members of the Legislature. But this is not one you can pin on the D's. How they handle the issue this session of course remains to be seen.

Posted by: jsa on January 10, 2006 11:23 PM
24. You make a good point, Ivan,(did I just say that?) when you state that some kids don't "get" it in their early years in school, but the bulb lights up when they begin to equate education to success in real life.

That, however, is not an excuse to spend so much time teaching "multi-culturalism" (whitey sucks), "earth first" (businesses rape the land), "diversity" (sodomites are cool) and other agenda-driven garbage in lieu of grade school math, science and English.

You also write, spell and punctuate quite well, Ivan. Are you over 50 or did you attend private schools?

Posted by: Saltherring on January 11, 2006 06:38 AM
25. Of course we should teach financial literacy and yes we should also teach basic math and reading skills.
It's not an either or situation. You don't necessarily have to stop teaching math to teach about finances. But many people I know are having much difficulty in their lives due to making bad financial decisions which they might not have made if they had some financial sense.

Even if kids don't learn much math, it still is useful to understand things like credit, and interest rates - at least teach them enough to know that they shouldn't max out their credit cards and just pay the minimum payment indefinitely...

Of course the teachers may not be very qualified to teach the subject, but if the curriculum is well written, it could still be useful.

Posted by: JustSumGuy on January 11, 2006 08:47 AM
26. I'm talking about financial education, period. I'm not talking about any of what you call "agenda-driven garbage."

Don't go there with me, buddy. Because for me, "agenda-driven garbage" is forcing kids in public schools to listen to someone read the bible, and say grace before eating their snacks. Too bad if you don't like hearing that.

That was life when I was a kid, and yes, I am a proud graduate of, and a strong supporter of public schools. I'm paying for them, and I'm making sure my daughter gets the best education my tax dollars can buy.

Posted by: Ivan on January 11, 2006 08:49 AM
27. Iven:

your'e not getting your money's worth. Or mine, for that matter.

Posted by: libertarianobserver on January 11, 2006 09:08 AM
28. Ivan:

My apologies for misspelling your name. I really have to remember to preview before actually posting!

Posted by: libertarianobserver on January 11, 2006 09:09 AM
29. LO:

I reserve the right to judge for myself whether or not I am getting *my* money's worth. I do not presume to decide that for you. That wouldn't be very libertarian, now would it?

Posted by: Ivan on January 11, 2006 09:30 AM
30. I'm all for teaching high school kids some financial literacy. They need it in this world.

No kid should get to high school without basic math skills. If kids were in a class appropriate for their level of knowledge then the schools could teach to the level of the grade.

The trouble is kids will not be held back as it might "hurt their feelings". They now realize how much it is hurting their lives forever by not hurting their feelings a bit in the formative years by teaching performance counts more than feelings. The instinctive response of the Ds is to throw more of our money at it.

Posted by: fred on January 11, 2006 09:43 AM
31. Spin down, Ivan, spin down!

Interesting isn't it, that as soon as you mention the socialist agenda of indoctrinating "multi-culturalism", "earth-first" and "diversity" in public schools, the lefties go for the throat of such horrors as Bible-reading and prayer, although both were discontinued in Washington state public schools in the early 60's.

We're talking now, Ivan, not the 60's. Socialists, legislators, leftist school boards and the NEA/WEA have rendered the public schools unfit to provide basic education. If you're comfortable with paying taxes for that, you're part of the problem.

Posted by: Saltherring on January 11, 2006 09:48 AM
32. Saltherring:

Wrong as usual. I'm part of the solution. I volunteer in my daughter's school, and work to make it better. I enforce study habits, hold her to a high standard, and raise the bar -- just like any responsible parent would do.

Her teachers have been competent, responsible and accountable, in my experience. Sorry if your experience is different, but that's not my problem.

My daughter's teachers have done well by her, and therefore I support them. That means I support the WEA right down the line. And if you don't like that, my friend, well you can jolly well jam it.

Posted by: Ivan on January 11, 2006 10:10 AM
33. Well Ivan, you just showed the best of a lib! I got mine - everyone else is "not my problem" and so you can "jolly well jam it".

Those mean, gready, selfish Repubulicans that want to improve the overall system so that it is good for everyone are such idiots!

Posted by: fred on January 11, 2006 10:13 AM
34. Red faced :( - that is meant to be greedy...

Posted by: fred on January 11, 2006 10:15 AM
35. Ivan:

If you truly believe you're getting your money's worth out of so-called "public" education, I have some real estate in Florida I want to sell you.

Posted by: libertarianobserver on January 11, 2006 10:22 AM
36. The phrase "The blind leading the blind comes to mind."

Posted by: James on January 11, 2006 10:41 AM
37. I'm not sure an entire class is necessary to teach a kid that paying the minimum on your credit card is a bad idea. Or how to balance a check book (checks are becoming a thing of the past very quickly anyway). This is something parents should teach their children.

The role of high school in my opinion is not to prepare kids for the real world. That is the job of parents first, and college second. High school's role is to prepare a kid for whatever secondary education they decide to pursue. After the ubiquitous "basic skills", there needs to be more focus on critical thinking. Because for the vast majority of people, it's not the P-value you learned in statistics or the Pythagorean theory that employers are going to look for you to provide.

Posted by: Palouse on January 11, 2006 12:47 PM
38. You are all starting to sound like the children you are supposedly "worried" about. Public schools were started to make education available to everyone. When it started, education was only for the wealthy. Then it became available to everyone. Now, only "quality" education is available to those that can afford it. My son is five years old. He turned five the end of November. According to the Public School System, my son was not old enough to be in Kindergarten. He had had two years of preschool, and was starting to read,add and subtract. Not ready? Sure. We had him evaluated at a Private School. He was accepted and is now at the top of his class, with five and six year olds. The Public Schools are too focused on making everyone happy, instead of teaching the children. The only ones not ready for "finacial literacy" are the ones that don't understand it. Not everyone was taught about credit, bank accounts, credit cards and DEBT. That is one of our Country's biggest problems. Too much debt. When one of the biggest employers is credit card companies, the Credit Bureau and Collection Agencies, you should know that there is a problem. Send in financial experts to the schools. I know one who would go in and volunteer. Maybe the Teachers will learn something too. Maybe they will realize how it is the government can be giving money to education but they aren't seeing any of it. Financial Literacy is a huge problem. And like most problems, they stem from ignorance. How do you get rid of ingnorance? You teach. Who do you teach? Those that need to be taught. Who are in the biggest percentage of those claiming bankruptcy? The 18 to 35 year olds. Why are they claiming bankruptcy? IGNORANCE!! So argue and pout all you want. I'm going to do something. I'm going to let my State Representatives and Senators know that I want financial literacy to be included in the schools. I hope you all realize that just because you aren't an elected official, you can still make a difference. Good luck to all!
Amanda

Posted by: Amanda on January 13, 2006 11:02 AM
39. financial literacy? simple; tell your kids that an X-Box or expensive high tech games are not "in the budget;" spending has been "re-prioritized" to books and tutoring lessons; summer is now partially filled with constructive classes or volunteering; you want the latest styles of $150 sneakers? good--buy them yourself or work it off at home with chores; as grades go up, goodies go up; "fair trade," right?

Posted by: Jimmie-howya-doin on January 16, 2006 09:36 PM
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