Introduction
A new collaboration between the University of Wisconsin-Whitewater and local high schools is giving students a competitive edge in financial literacy and a chance to earn college credits. This fall, high school students can enroll in the university’s three-credit online financial literacy program. The course covers essential topics such as accounting, investing, and credit building.
Program Details and Benefits
Mark Gmach, a former financial services professional, now teaches this program at his alma mater. He emphasizes that the course provides students with a foundational understanding of financial responsibility. “Throughout life, we learn financial concepts in bits and pieces,” Gmach explains, “but having a solid foundational knowledge can significantly benefit your financial life.”
The UW-Whitewater Partners in Education program offers this Personal Finance 101 course, allowing high schools to provide college-level courses in various subjects, including political science, foreign languages, and science. This financial literacy course is available to high school students statewide, enabling them to earn university credits at a reduced cost.
Legislative and Educational Context
A recent law signed by Wisconsin Governor Tony Evers requires high school students to complete at least half of their personal financial education credits to graduate. David Bashaw, a professor of economics at UW-Whitewater, believes that early financial education is crucial. “Starting financial education in elementary school and building upon it through middle school, high school, and college makes financial literacy second nature,” Bashaw says.
State law mandates economic literacy education for students in grades K through 12. Previous legislative efforts to require a financial literacy course for high school graduation were unsuccessful, but the new requirement marks significant progress.
The Importance of Practical Financial Knowledge
Cliff Robb, a professor of consumer science at UW-Madison, stresses the importance of practical financial education. “It’s unjust to expect people to navigate complex financial systems without any training,” Robb states. According to a 2022 review, many Americans are living paycheck to paycheck, and financial education can significantly improve savings rates.
Robb explains that a well-informed market reduces the prevalence of predatory financial practices. “Many individuals exploit people’s ignorance for profit with misleading information or inferior products,” Robb notes. His research indicates that financial education can decrease the use of high-cost financial services like payday loans and auto title loans, which often trap consumers in debt due to high fees and interest rates.
Building Confidence in Financial Decision-Making
Robb also highlights the psychological benefits of financial literacy. “Financial literacy aims to make people comfortable with their financial decisions,” he says. When individuals lack confidence in their financial knowledge, they are less likely to engage in financial planning and decision-making.
Gmach uses an illustrative quote often attributed to Albert Einstein to explain compound interest to his students: “Those who understand it, earn it; those who don’t, pay it.” This principle underscores the importance of financial education in helping students make informed and beneficial financial decisions.
Conclusion
The University of Wisconsin-Whitewater’s financial literacy program is a significant step towards equipping high school students with essential financial skills. By integrating financial education early on, students can develop the knowledge and confidence needed to navigate their financial futures successfully. Regular financial discussions and practical learning experiences can create a positive and proactive approach to managing money.
Key Takeaways
- Engage high school students in financial literacy courses to provide them with a solid foundation in managing money.
- Utilize everyday situations and modern tools to make financial education engaging and relevant.
- Encourage open discussions about money to help students build confidence in their financial decision-making abilities.