1. Business Teachers Association of NYS2008-20091 Can We Afford NOT To? Financial Education [Insert school name here]

2. Business Teachers Association of NYS 2008-2009 2 Do You Know? American teens confidently predict a future in which, based on the career that interests them most, they will be earning an average annual salary of $145,500 (boys expect $173,000 vs. girls, $114,200). The 2007, annual Teens & Money survey conducted by Charles Schwab & Co., Inc.

3. Business Teachers Association of NYS 2008-2009 3 However fewer than half consider themselves knowledgeable about: how to budget money (41%), how to pay bills (34%), how credit card interest and fees work (26%), whether a check cashing service is good to use (24%). Even fewer teens know how income taxes work (14 percent) or what a 401(k) plan is (13%). The 2007, annual Teens & Money survey conducted by Charles Schwab & Co., Inc.

4. Business Teachers Association of NYS 2008-2009 4 A 2007 survey by The Hartford Financial Services Group, Inc. found that: Nearly two-thirds (63%) of the parents surveyed say they definitely see personal finance education as their responsibility and consistently make the effort to teach their children about it, compared to the only 41% of students who say their parents did.

5. Business Teachers Association of NYS 2008-2009 5 The majority of college students say they learn the most about personal finance from their parents, but less than half of students say their parents make a consistent, conscientious effort to teach them. Furthermore…

6. Business Teachers Association of NYS 2008-2009 6 But our families are in trouble: Consumer revolving credit grew again in January [2008] as Americans tacked on $5.6 billion in net new debt, mostly credit card debt, compared to the prior month. Consumer bankruptcy filings in February [2008] rose to 76,000 compared to 66,000 in the prior month. Chapter 13 filings made up about 46% of all consumer cases, down slightly from last month.

7. Business Teachers Association of NYS 2008-2009 7 Our students do as their parents… A recent survey by Sallie Mae found that more than half of college students accumulated more than $5,000 in credit card debt while in school. Of the 13,000 respondents, one-third piled on more than $10,000 in credit card debt while in school. Only 19 percent said they did not acquire any credit card debt while in school. This does NOT include student loan debt…

8. Business Teachers Association of NYS 2008-2009 8 Society doesn’t help… A culture that views shopping as entertainment and spending as patriotic. Too many schools and colleges—still—with no financial education initiatives. Parents who “protect” kids from having to deal with financial details and paperwork. Advertisers that target very young children although research shows that children under age 8 are cognitively and psychologically defenseless against advertising.* * Committee on Communications Pediatrics 2006. American Academy of Pediatrics

9. Business Teachers Association of NYS 2008-2009 9 But… The 2007 back-to-school cardholder survey from Visa revealed that: Only 5% of adults learned about the vital life skill of money management in elementary or high school.

10. Business Teachers Association of NYS 2008-2009 10 And… 91% of respondents said they supported requiring financial education be taught in every high school in the country.

11. Business Teachers Association of NYS 2008-2009 11 Students WANT to know: The 2007 annual back-to-school survey from Capital One found that: When asked about the topics they'd most like to learn about, teens express interest in:  how financing works for large purchases such as a car or a home (74%),  investing money (72%),  identity theft and how to protect themselves (68%),  saving money (62%),  budgeting (58%),  stocks (58%),  checking accounts (55%)  credit cards (55%).

12. Business Teachers Association of NYS 2008-2009 12 What We Want our Students to Know: Knowledge about credit, debt, budgeting, saving, investment, and tax (terminology and norms.) More rational financial decision-making. Cost consciousness and financial management skills. Willingness to develop early saving habits and understand compound interest. More personal responsibility for career paths, education, and the outcomes of their choices. Early planning for retirement needs

13. Business Teachers Association of NYS 2008-2009 13 NYS Response Two bills were introduced by our legislatures: Senate: S00851 Assembly: A09972 This bill would require that high school students have financial education integrated into their curricula for high school students, including personal financial planning and budgeting, understanding of the income and property tax systems, and understanding state and federal laws concerning personal and commercial finance.* http://assembly.state.ny.us/leg/?bn=A09972

14. Business Teachers Association of NYS 2008-2009 14 Federal Response September 16, 2008 From the Los Angeles Times See Sally. See Sally run from the bank. Run Sally run. In the midst of one of the worst banking crises in decades, the U.S. Treasury Department today will launch a long- planned program to teach young Americans about credit and other financial matters. The theme of the campaign: "Don't let your credit put you in a bad place.”

15. Business Teachers Association of NYS 2008-2009 15 Our Response Insert your outline here…..

16. Business Teachers Association of NYS 2008-2009 16 We want students to be… watchful of their money so they can learn how to manage it well!

17. Business Teachers Association of NYS 2008-2009 17 Financial Education Can we afford NOT to require this course for ALL our students?