With the second semester just underway, many students are sad to wave goodbye to their first semester electives. Whether it be Ceramics, Intro to Biomedical Science, or The Art of Watching Film, students enjoyed the opportunity to explore unique interests inside the classroom. Personally, I will definitely miss my Introduction to Finance class. The elective was started this year by math Department Chair Sandi Goss as a way to give interested KO students a background in financial literacy and money management.
Our semester started with a deep dive into behavioral economics, understanding the psychological biases that impact our financial decisions. From there, we did an analysis of various banking accounts, exploring the pros and cons of each. A personal favorite, our third unit was investing, and each student created a portfolio to track their chosen stocks over 10 years. Following this, our class learned about credit and maintaining a strong credit score, even completing our own budgeting project, forcing us to consider the financial choices families around the world are faced with. To wrap up the semester, we explored various types of college loans, preparing seniors as they head off to college in the fall. In all, I couldn’t be more grateful that I took the class, having left with new knowledge of financial decision-making and money management strategies.
On July 20, 2023, Connecticut passed a new bill that requires high school seniors to complete a financial literacy course in order to graduate from public high schools. The class covers topics such as investing, savings, credit cards, and debt, very similar to what is covered in KO’s Introduction to Finance elective. The requirement will begin with the class of 2027, and the legislation makes Connecticut one of 21 states across the country that have enacted similar requirements.
Government Lamont spoke about the importance of this new bill. “Personal financial management is one of the most important instructional tools that we can give young people to achieve economic independence and stability throughout their lives,” he said, “and requiring it to graduate from high school is simply common sense.” In the wake of Connecticut’s legislation, I propose that KO follow suit by making Introduction to Finance a graduation requirement to equip students with a financial background that will prepare them for financial success beyond high school.
Financial literacy education has been linked to numerous benefits. The first is that these types of classes help students build healthy financial habits, including avoiding debt, building an emergency fund, setting aside money for retirement, and building a good credit score. It was revealed by the Financial Industry Regulatory Authority (FINRA) that 53% of those with high financial literacy spent less than their income and 65% had a three-month emergency fund. Furthermore, in today’s digital age, children are constantly faced with advertisements and online messages encouraging excessive spending; building financial literacy into school curriculums could teach students to develop healthy spending habits and make smart consumption choices.
Studies have shown that financial literacy gaps are often present among various income, gender, and racial groups. Giving students access to financial literacy education, especially at a young age, could work towards closing these disparities in the future.
Lastly, requiring a financial literacy elective for high school students will prepare them for success in college. This class could teach students to fill out the FAFSA, apply for scholarships and grants, as well as understand the obligations and consequences of taking out college loans. It is crucial for students to have awareness of these topics before becoming financially independent.
Ms. Goss emphasized the importance of understanding how to invest, budget, and save at a young age. “Learning about finance, the power of compounding, and saving is critical for financial flexibility and freedom,” she said. “If there is one take away from the course it would be to set financial goals and start saving at a young age.”
Given these benefits, I firmly believe that KO should join with schools across the country in making a financial literacy elective a requirement for students. This course could be built into the current requirements so that students wouldn’t be forced to add to their already-existing requirements. By recognizing the benefits that come with building financial literacy into KO’s curriculum, we can teach students the necessary knowledge and skills to prepare them for financial success beyond KO.
