The Importance of Financial Literacy

By Sam Piha 

Source: Vermont Afterschool, Inc.

In 2023 we made the case that, “financial well-being is a growing problem for today's youth. For instance, today’s youth can amass debt quickly, often in the form of school loans or credit card debt. We know from research that young people who are financially literate make much better decisions regarding their future finances. However, most young people, especially youth of color, lack access to financial literacy information. This is referred to as America’s financial literacy gap. Afterschool programs are especially well positioned to address the need for financial literacy. ”[i]

We posted a LIAS blog, released a briefing paper and hosted a webinar/training to raise awareness and understanding of the importance of financial literacy for youth. Thus, we were excited to learn from California’s EdSource that, “soon, all California high school students will learn about college grants and loans, how tax rates work, the benefits of insurance and how interest high rates can blow your budget when you miss a payment on a credit card.”

“Research shows that students who have access to high-quality financial education have better financial outcomes as adults that result in less debt and a higher quality of life.” - Tony Thurmond, California Superintendent of Schools

This week, legislators rushed to pass legislation that would make California the 26th state to require a course in personal finance as a requirement for high school graduation as of 2030-31. A semester of personal finance must be offered in all high schools starting in 2026-27. Under the bill, the Instruction Quality Commission, which reports to the State Board of Education, will create a curriculum guide and resources for a personal finance course by May 31, 2026.

The course will include these topics:

• Fundamentals of personal banking, including savings and checking accounts
• Budgeting for independent living
• Financing college and other career options
• Understanding taxes and factors that affect net income
• Credit, including credit scores and the relation of debt to credit
• Consumer protection skills like identifying scams and preventing identity theft
• Charitable giving
• Principles of investing and building wealth, including pensions and IRAs, stocks, bonds, and mutual funds” [ii]

“It’s often the students who need financial literacy the most that receive it the least. Parents of low-income students are far less likely to be financially literate themselves, which means they can’t pass that knowledge down to their children. I truly believe this bill is one of the most impactful and feasible ways we can combat wealth inequality in our state.” - Kayvon Banankhah, a high school junior from Modesto, CA

When asked in a survey, youth reported learning how to manage money was “meaningful” and something they wanted.



Source- Youth Voice: Future Directions for Afterschool Prepares Youth for the Future 

1,087 young people who participate in 321 afterschool programs responded to the survey.

END NOTES

[i] Temescal Associates, Promoting Financial Literacy for Youth in Afterschool Programs
[ii] John Fensterwald, Add personal finance to what every California high school graduate must learn

The Wonder of Being Kind

Source: Character.org

Sixth grade student, Aishi Roy, wrote this essay, which was originally published by Character.org’s The Laws of Life essay contest. This contest encourages elementary, middle, and high school students to reflect and write about a core value that means the most to them – and why.

...

It all started one Monday during lunchtime as I was scouting for my usual group and they were nowhere to be seen in the cafeteria.  

When I noticed a new girl sitting alone at lunch. Her name was Anne, and she seemed shy and nervous. I remembered how it felt to be the new kid in school since I have moved a lot, so I decided to go over and asked “Mind, if I sit here?” Anne nodded. I asked her where she is from. Anne replied, “From Russia.” 

I realized that she was not only new to school but also to the USA. It was a much bigger shift for her than I thought it would be. At that moment, I thought I could develop a new friendship; in this way, I would learn something new and help her with things around school. For the next couple of days, we started hanging out during lunch, and I would help her with small things. It was like a chain reaction of kindness, all because one person took the time to show a little compassion. All of my friends started doing the same. 

It felt like being nice and kind is like having a magic touch that can truly transform the world for the better. It's not a word, it's a way of living. Just imagine if everyone treated each other with kindness, what a world that would be! 

I have found that in my school life, when I am helping a friend with their studies, lending an ear to someone in need of support, or consoling someone who is feeling down, kindness has the ability to make an impact on people's lives. When we extend warmth to others it motivates them to reciprocate in kind. 

Moreover, kindness isn't about how we interact with others; it also encompasses how we treat ourselves. It's vital to extend kindness towards ourselves—to practice self-compassion and self-care. This entails being gentle with ourselves, forgiving our missteps and acknowledging our value. By being kind to ourselves we enhance our ability to display kindness towards others. 

In essence kindness is indeed a strength that resides within each of us. It holds the potential to transform the world through acts of goodwill. As a 12-year-old I hold the magic power to impact those around me positively by doing small acts of kindness. 

Let’s spread kindness everywhere we go and see how the world transforms into a joyful place, for everyone. Keep in mind kindness isn't merely an action we take; it's a reflection of ourselves. Lastly, kindness has this ability to spread from one person to another like wildfire.

MORE ABOUT…

Aishi Roy is a 6th grader at Rose Hill Middle School, Washington.

 

 

The Laws of Life essay contest sponsored by Character.org encourages elementary, middle, and high school students to reflect and write about a core value that means the most to them – and why.

Character.org is a non-partisan organization that advocates for character.

It is comprised of educators, researchers, business and civic leaders who care deeply about the vital role that character will play in our future. Their worldwide network empowers people of all ages to practice and model core values that shape our hearts, minds, and choices. Their mission is to provide global leadership, voice, and resources for developing character in families, schools, and organizations.