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Home / Washington Business - July/August 2007 / Workforce: Financial literacy needed more than ever |
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Workforce: Financial literacy needed more than ever |
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Written On: July/August 2007 |
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Written By: by James Pishue |
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James Pishue is president and CEO of the Washington Banker’s Association, which represents more than 80 commercial banks operating in every county of the state. He has more than 30 years of experience in the financial services industry.
There isn’t much good news about math education in our state lately. While steady progress has been made in lifting reading and writing achievement, only 60 percent of the students in the class of 2008 reached proficiency in math on the Washington Assessment of Student Learning. These results prompted lawmakers to delay the math graduation requirement for another five years, to 2013.
Seemingly lost in the understandable hand-wringing over lagging math performance is the disturbing fact that too many of our young people also come up short in the critical area of financial literacy. Far too many high school graduates are leaving school without understanding the relationship between risk and return, the concept of compound interest, and other financial basics that constitute a solid economic IQ. In contrast, the financially literate make better customers, are more likely to make good decisions, and are less likely to become victims of identity theft and other forms of financial fraud.
Teens spend billions
With nationwide teen spending climbing towards $200 billion annually and a national saving rate hovering around zero, it’s clear that our young people need a better financial footing than they are getting today.
More important, these students will soon be the wage earners, taxpayers, homeowners, and economic drivers of our local communities. We need them to develop the skills to survive and succeed in this increasingly complex and competitive world. How can our country remain the world’s economic leader if we don’t produce young adults skillful enough to compete? We can’t.
That’s why financial literacy should be integrated into the math curricula taught in classrooms across our state.
Unfortunately, there are many obstacles to making significant changes in our educational system. Competing priorities, securing appropriately targeted funding, and negotiating with the teachers’ union are a few of the biggest hurdles. If you want evidence of just how slow progress can be, remember that the graduation requirement now set for 2013 was first established in the early 1990s.
Despite these challenges, the question remains, "How long can we afford to wait?"
Again, we can’t. Business and community leaders should add their voice in support of financial literacy education. In addition to "talking the talk," it’s time for more of us in the business community to "walk the walk."
Reasons for improving education
We can all roll up our sleeves and work with our local schools to deliver financial education resources to the classroom. There are plenty of resources available to those interested in this important work. Scott Jarvis, director of the state’s Department of Financial Institutions, is a leading proponent of financial literacy education, and the department’s Web site (www.dfi.wa.gov) has some great tools for students, parents, and teachers. The Financial Literacy Public-Private Partnership, headed by Rep. Sharon Tomiko Santos, D-Seattle, is working to bring financial literacy education to Washington’s K-12 students. Programs like Junior Achievement and AWB’s Washington Business Week are also proven winners. These programs help young people develop an understanding and appreciation for the role of private enterprise, the importance of profit motivation, and how the economy works. Take your pick, but get involved.
For our part, the Washington Bankers Association sponsors Teach Children to Save Day in April and Get Smart About Credit Day in October. Through these programs, bankers from around the state bring engaging and entertaining financial literacy tools to students of all ages.
We owe it to our children—and to our future—to help right this ship. Doing so would be some very good news indeed.
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