The objective of the Personal Finance unit is to address real-life financial decisions, opportunities, and potential pitfalls our senior students will encounter in the near future.
Why would we do this? Check out the following facts and figures from the Networks Financial Institute at Indiana State University regarding American teens and young adults:
- Based on a national survey of high school seniors, America's teenagers as a group in 2004 score a failing grade in basic financial literacy knowledge.
- Teenagers are active consumers, spending $175 billion in 2003, with 21% having their own credit card or access to their parents' credit card, and 16% holding their own ATM cards.
- Young adults between 20 and 24 represent the fastest growing segment of bankruptcy filings; in fact, more people will file for bankruptcy in 2004 than will graduate from college.
- The average credit card debt among graduate students who carry cards is $7,831 per student, an increase of 59% over 1998's average debt of $4,925.
- Consistent with 1998 and up from 2000, graduate students carry an average of six cards each, and 96% of all graduate students carry credit cards.
- Credit card debt among young adults between the ages of 25 and 34 has increased 55%, while credit card debt among the youngest adults, between 18 and 24, has skyrocketed 104% since 1982.
- Americans aged 25-34 have the second highest rate of bankruptcy (just after those aged 35 to 44). The bankruptcy rate among 25-34 year olds increased between 1991 and 2001, indicating the GenXers were more likely to file bankruptcy than were young baby Boomers at the same age.
- Excerpts from Financial Literacy for Teens: The Teen's Guide to the Real World of Money by Chad Foster. Foster states, it "is a quick, easy read that will help young people develop good financial habits at an early age- habits that will enable them to successfully make, manage, multiply, and protect their hard-earned money" (2005)
- Consumerism: Students will become consumer advocates (for themselves), whether it's complaining about flimsy workmanship, protecting themselves from unsafe products, or getting the most from their purchases. Texts/Videos include Fast Food Nation, Super Size Me, Consumer Reports)
- An Introduction into Investing (e.g., stocks, bonds, mutual funds, 401K)
- Internet Fraud and Identity Theft
- Occupational Hazards of Social Networking Sites (e.g., Facebook and Myspace)
- Budgeting: credit and debit cards, savings and checking accounts
