When Erica Wax teaches financial education to high school students, usually, “The inquiries just fly… about credit cards, about paying back student loans,” she said.
Wax, a former bankruptcy attorney and business lawyer for more than 30 years, is president of Credit Abuse Resistance Education Chicago, or CARE Chicago. Financial literacy education is provided to high school students in the Chicago area by the nonprofit team, which is a local chapter of a national organization. Last month, it taught about 4,000 children.
“Because they have only enough experience to know what they don’t know, students have a million questions,” Wax said.
Illinois has recently become one of the increasing number of states that has included financial literacy in its core education. A bill passed in the General Assembly last year that may require students to take a course in financial literacy is a subject that the Illinois State Board of Education includes in its social science requirements.
Illinois received a “B” on a national report card released in 2023, which indicated that the state would continue to improve financial education. That’s partly because monetary education can be offered as a component of various programs, such as math or economics, rather than as a stand-alone course.
The report from the Center for Financial Literacy at Champlain College in Burlington, Vermont, showed only seven states received an “A”, though 23 were projected to receive an “A” by 2028.
Wax claimed that high school students in the Chicago area may have a wide range of financial literacy levels.
“According to the inquiries I receive in the classroom, I would sadly suggest that several high school students are familiar with the distinctions between debit and credit cards. However,” she said, “they don’t always grasp the nuances,” such as how a debit card may protect against fraudulent charges while a credit card may not.
Similar to how college-bound students may not be able to negotiate financial aid packages and understand the distinction between a grant and a loan.
In Chicago Public Schools, financial education in high school is delivered through an education called “EmpowerED” that outlines a four-year training program meeting the state’s graduation requirement. The curriculum covers seven required subjects: financial concepts, money management, banking, credit, insurance, investing, and consumer protection.
The district supports the professional development of more than 50 new teachers each year by providing them with more than 300 hours of training.
But as with other regions throughout the state, there’s flexibility in how the teaching is delivered. One school may include the instruction in a math course, while another might offer a stand-alone financial literacy course, a third may integrate the material into a senior course on post-secondary education and planning, and a fourth may offer the course.
The district is conducting pilot projects with outside partners like the Chicago Mercantile Exchange to teach mini financial education to secondary students. A full rollout of the education is anticipated next year.
Vince Shorb, CEO of the National Financial Educators Council, said the efforts represent progress but aren’t enough.
“Public schools are failing our kids” when it comes to financial education, he said.
He points to outdated approaches to fundamental topics that haven’t significantly changed in the last century, despite the complexity of modern financial issues.
“It’s a completely different world today,” he said. “I believe there should be more stand-alone courses that focus on near-term life activities,” such as getting a car, moving into their own apartment, or even how to interview for a job.”
But even a full quarter of training might not be enough, he said: “Do you speak a foreign language after one semester”?
This spring, the organization will launch a campaign in Illinois to promote financial education advocacy, build local partnerships with college towns, community groups, and other businesses.
Shorb said the campaign, first introduced in California, will address gaps in testing and assessments and support teachers who may not have had financial training.
“We need to make it more engaging and interesting,” he said.
Wax, a representative for CARE Chicago, agreed and said she sometimes has to redirect the discussion back to the core curriculum because she is encouraged by student interest in personal finance.
“I always get at least one student who wants to talk about stocks,” Wax said.