Introduction: What do high school students need to know in financial literacy?
Every two years, the Council for Economic Education (CEE) conducts a Survey of the States to collect data from all 50 States and the District of Columbia. The survey includes a comprehensive look into the state of K-12 economic and financial education in the United States. The 2018 Survey reflected no growth in personal finance education in recent years and little improvement in economic education since the year 2014. Survey revealed that 22 States still require high school students to take a course in economics, but only 17 States require them to take a course in personal finance. So, how are high school students supposed to receive financial literacy knowledge to make sound decisions regarding money management? High school students can explore several trusted resources to acquire such knowledge including consulting with their high school counselors, discussing financial topics with their family members and friends, and most importantly, researching such topics in libraries and trusted literature.
As an effort to bridge the gap between high school and college, The Pennsylvania State University has prepared this self-study module to promote financial literacy and help guide high school students to make informed decisions for a life of financial well-being. Here is a summary of must-know topics by all high school students, regardless if they make the decision to attend college or join the workforce right after graduating from high school.
- Banking - Open checking and saving accounts, understand electronic use of debit/credit cards, reconcile accounts for money management
- Credit cards - Limit the number of credit cards in possession, use wisely by not charging more than the ability to pay back in full and on time to avoid interest and late fee charges
- Taxes - Understand Federal, State, Social Security, Medicare and other applicable taxes to payroll
- Gross to Net Income - Learn how to compute net income after tax and other employment deductions
- Saving and investing - Learn the magic of how money grows over time through saving and investing early in life for short-and long-term goals
- Spending - Learn how to budget properly to control spending and enhance earning power over time
These are the basic topics that a high school student can start learning as early as possible in hope to build a financial life of freedom and security. A student can start the process by making financial decisions gradually that affect present and future life. Eligible students who meet legal and age requirements are encouraged to find summer, seasonal, or part-time employment as early as sophomore or junior year in high school to practice making financial decisions. In addition, banking and securing credit cards are subject to age limitations, a high school student will need to seek parental guidance and support to navigate through the process of reaching financial independence.
Each student's situation is unique, but there are a few questions that most high school graduates wished they had asked their counselors as they navigated the search for a college. Some of these questions are provided to you at the beginning of the module to help you formulate what is most important to you. You will be asked to write down your questions at the end of the module. Here is the list of questions:
Now that you know the basic topics that a high school student needs to know to pave the road for financial literacy knowledge, let's learn more about financial literacy for high school students!
Chapter 1. Making the decision to go to college
Chapter 2. How to calculate cost of education?
Chapter 3. Where to look for funding?
Chapter 4. How to budget for college and stick to it?
Chapter 5. Tips and ways to transition successfully from high school to college