Transcript Financial Literacy Education: Some Thoughts

Financial Literacy Education &
Analytics: Some Thoughts
Dr. Jay Liebowitz
Distinguished Chair of Applied Business and Finance
Harrisburg University of Science and Technology
[email protected]
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Financial Literacy Definition (FLEC)
“The ability to use knowledge and skills to manage
financial resources effectively for a lifetime of
financial well-being.”
“Financial education is the process by which people
improve their understanding of financial
products, services and concepts, so they are
empowered to make informed choices, avoid
pitfalls, know where to go for help and take other
actions to improve their present and long-term
financial well-being.”
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“Ultimately, a staff function can never make
analytics happen. Managers need to integrate it
into how they manage, how they reward, how
they build it into the culture of the
organization.”
—Malcolm Bertoni, Assistant Commissioner
for Planning, FDA
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Competency/Behavioral Goals (2015 Money
Matters on Campus Study, HigherOne/EverFi)
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The Making Cents Project
(http://www.makingcentspa.org/)
• A Model Personal Finance Course for
Pennsylvania High Schools
– Module 1: Money Management
– Module 2: Earning Income
– Module 3: Borrowing Money
– Module 4: Financial Services
– Module 5: Risk Management
– Module 6: Saving and Investing
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“What Does Financial Literacy Mean to
Me” Contest (Harrisburg School
District/HU—Grades 7-12)
• https://www.youtube.com/watch?v=3kVPMk
CGars&feature=youtu.be
• http://fox43.com/2014/12/16/teachingfinancial-literacy-at-a-young-age/
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Spring 2015 Special Issue on Financial
Literacy (Journal of Consumer Affairs)
• Parents and caregivers play an extremely
influential role in the development of the
financial capability of young people.
• Financial capability requires skill development
and mastery, along with financial knowledge,
and these are a function of practice,
repetition, and experience.
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Spring 2015 Special Issue of Journal of
Consumer Affairs (cont.)
• During the transition from youth to young
adulthood, people need financial products,
services, and opportunities to put their
financial skills to use.
• Policymakers should support and promote
interdisciplinary research and program design
in the field of financial literacy.
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Challenges Facing Us
• Many schools don’t have extra money to re-train teachers
and implement personal finance courses into the
curriculum (curriculum is already overloaded).
• Many teachers (who are currently teaching these courses)
don’t have the necessary background and formal education
to teach such courses.
• Many families don’t have the discussions at home in terms
of building financial knowledge for their children.
• Many schools don’t see “financial literacy (and analytics)”
as a “must-have”, but rather as a “nice-to-have” (it really
should be “reading, writing, arithmetic, and financial
literacy”)
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THANKS!
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