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Cedar Falls, Iowa-Area Schools Offer Courses in Financial Literacy

Posted on: Thursday, 20 April 2006, 00:00 CDT

By R.C. Balaban, Waterloo-Cedar Falls Courier, Iowa

Apr. 19--CEDAR FALLS --- Noah Dodd tries to save money, but it's hard to do.

Dodd, a second-grade student at Southdale Elementary, said when he gets money, he tries to put it away from where his siblings can reach it.

While he has his sights set on a Yu-Gi-Oh dual disc launcher, getting one may take longer than he would like.

"It's hard to save because when I go into Wal-Mart, I find something that I really want to buy," Dodd said.

Even at his age, Dodd's struggles match what most Americans face on a daily basis. With many children facing the same dilemma, next week might be a good opportunity to talk more about personal finance.

Tuesday is National Teach Children to Save Day. The American Bankers Association Education Foundation has volunteers go to various schools across the country to teach students about the importance of saving.

Some area education efforts have been under way for some time through groups like Junior Achievement. Carisa Marovec, district director for Junior Achievement of Black Hawk Land, said at the elementary levels, financial education is simplified, with more in depth offerings for middle and high school students.

Area high schools also offer business education classes. In Waterloo, for example, economics is required for graduation. Deb Pfalzgraf, head of the business education department at East High School, said additional programs such as the credit counseling program done through Consumer Credit Counseling Services of Northeast Iowa are also a plus for students wanting financial education.

Gloria Paulsen, who holds Pfalzgraf's position at West High School, said making personal finance education a graduation requirement across the state certainly wouldn't hurt, given the difference between those who take personal financial classes and those who don't.

"Before they take a class, (financial literacy in youth is) almost nonexistent," Paulsen said.

Statistics seem to back that claim. Every two years, the JumpStart Coalition for Personal Financial Literacy tests high school seniors on their knowledge of personal finance basics. The students targeted are those in classes outside of finance and management, mostly in English and social studies classes.

The average score for 2005-06 was 52.4 percent, up slightly from the previous survey. In the five times the test has been administered, the average score has never cracked the 60 percent mark.

Lois Lindell, associate director of the Center for Economic Education at the University of Northern Iowa, said one way to improve financial literacy is to begin teaching it in the elementary schools.

"In our office, we have a real strong feeling that personal finance should be introduced early on," Lindell said.

Lindell said more specific lessons, such as how checking accounts work or how investment vehicles differ, can be introduced and explored at the middle school and high school levels.

The schools are not the only place where students can learn about saving and personal finance. In fact, the home is more likely to be an influence on youth's personal finance habits. According to a survey done by the American Savings Education Council, 94 percent of youth named their parents as their primary source of financial education.

Even so, among parents who rated themselves fair or poor at managing their own finances, 81 percent still felt they were effective in providing financial guidance for their children.

"I think too often it's too easy to get caught up in daily life and we forget we're role modeling for our children," Lindell said.

Marovec said simple discussions about financial matters at the dinner table could go a long way in helping a child be better prepared later on.

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To see more of the Waterloo-Cedar Falls Courier, or to subscribe to the newspaper, go to http://www.wcfcourier.com.

Copyright (c) 2006, Waterloo-Cedar Falls Courier, Iowa

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Source: Waterloo Courier

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