Visa announced in late March that it was partnering with the Council for Economic Education (CEE) to form a coalition of community leaders, nonprofits and business partners called FinEd 50. The goal of FinEd 50 is to improve access to quality financial education for students. improve in the US.
According to the CEE’s 2022 survey, which measured economics and personal finance education in U.S. schools, only 27 states require a course in personal finance for students, and those courses vary in quality.
“America is failing our children if we don’t give them opportunities to study critical economic and personal finance concepts before they drop out of high school for college, a job, and their future,” said Nan J. Morrison, president and CEO of CEE, in the press release. “While we’re encouraged by some progress in our latest survey, all young people across the country need more and deserve better.”
According to the Council, financial education is an essential part of the education of young people. Using digital channels and classroom teaching to support financial literacy helps them budget and position themselves to make sound financial decisions. This seems especially important for college-bound students as they prepare to take out student loans.
The National Financial Educators Council (NFEC) recently released the results of their tests measuring financial literacy in different age groups. The Student Loan Test found that of the 8,904 college and college students who participated, there was a 66% failure rate and an average score of 59%.
Also: Everyone from Gen Z to Boomers could use more financial education: NFEC study
The questions of the test cover various topics related to student loans, such as what is the best type of student loan to choose, what is forbearance and procrastination and what are the consequences of not paying the loan, among other things. Given the questions asked, the results become even more worrisome.
“For many college graduates, achieving the dream of earning a college degree comes with student debt that can derail their finances. Today’s youth are consistently encouraged to attend college but never receive a financial education. they are making the largest investment of their lives to date with little or no knowledge about evaluating student loan choices, and no plan to repay the borrowed money,” NFEC CEO Vince Shorb said on the test results page.
With the formation of the FinEd 50, Visa and the CEE hope to change these results. According to the press release, the coalition has four main goals:
- Generate state-level action to ensure every student has access to equitable personal finance courses
- Ensure curricula meet national standards for personal financial education
- Provide educators with professional development through “innovative funding mechanisms”
- Provide a tool to track access and ensure program equality
“The state of financial education offered to students in the US varies considerably. Where students live should not affect whether they have access to knowledge that will help them learn how to make informed financial decisions in their lives,” said Worku Gachou, head of North America, including impact & sustainability, at Visa in the release.