Financial Literacy a Priority in Delaware
Delaware State News
By Jack Markell
May 16, 2002
Thanks to an extraordinary effort by the Delaware Bankers Association and the University of Delaware's Center for Economic Education and Entrepreneurship, thousands of Delaware schoolchildren recently learned the benefits of and received instruction in saving money. Approximately 270 bankers from throughout Delaware taught 6600 students in 56 schools in all three counties as part of the national "Teach a Child to Save" Day. I was delighted to work with several first grade classes at Georgetown Elementary School.
The timing is none too soon. Just last week, the Federal Reserve released a national survey that found that teen-agers are lacking in basic financial knowledge. Not only did they flunk a test on the subject; they performed even worse than they did last year. On average, participants answered 50.2% of the questions correctly in the most recent survey. In 1997, the corresponding figure was 57.3%.
If there is a silver lining in this dark cloud, it's that key leaders across the country are beginning to grasp the importance of financial literacy - and are realizing the depth of the problem.
Why does all of this matter? According to Treasury Secretary Paul O'Neill, "four out of ten Americans say they are living beyond their means. Personal bankruptcies rose 69% in the 1990's. A large number of Americans are not saving enough for retirement, or have not even considered how much they need to save for it."
These issues affect all of us because our economy was founded on the notion of personal responsibility. And as O'Neill said, "If we want people to build the American dream for themselves, we need to give them the tools."
In Delaware, we are trying to do exactly that.
For schoolchildren, we have opened banks in 24 elementary schools across the state. Thousands of students participate and have an opportunity each week to deposit funds in real banks, operating on school premises. We expect to open more school-based banks next year. Importantly, the banks are only a part of the education for these students. Teachers often integrate financial literacy curriculum into traditional classes. Money and finance is tightly woven into the fabric of American life; similarly, it can be highly integrated into math, reading and social studies classes. Fortunately, Delaware's widely-publicized accountability standards include a financial literacy component at several different grade levels.
This fall, we expect to hold in Dover our second "Money Smart Kids" conference. Last year's conference, at Clayton Hall in Newark, attracted 250 students in the fourth through seventh grades, along with their parents. We expect another big turnout this year, which means hundreds of Delawareans will learn practical tips about how to make the most of their money.
The Delaware Money School (www.delawaremoneyschool.com) offers hundreds of adult-oriented financial classes each year. Classes cover a wide variety of topics, are generally free, and offer on-line registration. Thousands of Delawareans have already reaped the benefits of this educational opportunity. The first classes in Spanish will be offered this year in Bridgeville.
Many organizations - from the Urban League to the YWCA, from for-profit financial institutions (like MBNA which runs its Financial Advisory Service) to the Boys and Girls Clubs similarly offer educational opportunities to thousands of people throughout the state.
Here's the bottom line: No matter your age or financial situation, how you handle your money and plan for your future is critical. If you believe you can use help, there are opportunities to obtain assistance.
Editor's Note: Jack Markell is State Treasurer of Delaware.
