Blue Stone Success

New Jersey's top radio station, 101.5, regularly throws out topics for comment on-air. This afternoon, the topic was the mandatory "Financial Classes coming to NJ High Schools" and the upcoming pilot in 10 high schools. They sought comment whether financial education should occur in the schools or at home, is there value in such classes, how do you find/create certified teachers, and do state citizens support these classes. The callers, including myself, represented a wide variety of people -- several parents, a debt-laden 28-year old, an accountant, educators, two small business owners, an insurance agent, a student, and others. Surprisingly… EVERY caller supported financial literacy classes in high school and making these classes mandatory. EVERY caller felt strongly that a personal finance must be in the school - even if it came at the expense of cutting another program or sport. And, while many felt strongly that education should occur at home, they were quite vocal that they wanted it in the high schools as an independent class - not part of math or economics. So New Jersey's pilot program and current efforts to certify teachers to meet the upcoming mandates are spot on!

I recently had the honor of leading a financial management seminar with a fabulous group of graduating college seniors. As I basked in their enthusiasm, aliveness and eagerness about life after graduation, I knew the reality hidden behind those smiles and laughs… the thousands of dollars of debt needing to be repaid, the jobs not available during this recession, the damaged credit scores, the bruises from late payment and bounced check fees, and the lack of confidence in where to start and how to succeed financially.

I contemplated about had far they had come in the past four years and yet they remained just as uninformed about personal finance as did when graduating from high school four years earlier.

Sure, they were smarter. They got some things: borrowed money needs to be repaid, money doesn’t grow on trees, and it’s hard to maintain balances in their checking accounts.

Like deer caught in the headlights. All those eyes staring at me. An awareness that they were in danger and not frozen hoping luck will help them survive. They “got it”… they were not prepared to succeed financially.  I could see they wanted the silver bullet or the magic wand that would fix everything. And there it was, in front of us all  – the awakening which created a new space for transformation and new possibilities. It was a delicious space. They were refreshingly honest about their finances, their fears, and their mistakes. A beautiful space. One of engagement. Sponges thirsty to absorb as much as they could. One of courage in admitting they didn’t know where to start and wanted to “figure this out.” I was both honored and inspired.

Sure, they seminar left them transformed. They had a game plan. They felt confident in challenging institutions and businesses about financial matters. They were committed to taking smart steps and increasing their financial mastery that week. And they were on their way. The “feel good” is knowing that I’ve altered their life path and put them on a new trajectory.

But I remain concerned for the millions of students coming after them. I know that they too will hide their limitations and be unprepared when it comes to personal finance. I know they will be silent when they get caught in the downward spiral of money mistakes guaranteed to take them down or pretend that all is well because somehow they are still in school. I know they won’t share their financial fears or questions with their parents. The reasons are many and it doesn’t really matter. What matters is stepping into that space with another.

So I ask you, what can you do start the awakening of those around you? A conversation about an article in the paper? Sharing that you don’t understand the new banking regulations? Providing a poor financial decision you made? Inquiring about what they wish they knew more about? The gift of you being the source of an altered path could be yours as well. Don’t wait. There is no time like the present.

I have just reviewed the recently released "Survey of the States 2009: The State of Economic, Financial and Entrepreneurship Education in our Nation's Schools" by the Council for Economic Education. Just 13 states require a high school course in personal finance in order to graduate. They are Arkansas, Georgia, Idaho, Illinois, Louisiana, Maryland, New Jersey, New York, Oklahoma, South Dakota, Tennessee, Utah, and Virginia.

While I am delighted that strides are being made to expand the reach of financial literacy nationally, I am concerned that the current economic situation and slashing of many school budgets will put personal finance on the back burner… just when it is needed most. It is going to take everyone - students, parents, educators, superintendents, Boards of Education, and government officials to make financial literacy a priority.

The massive changes our nation is undergoing affects every American at every age, in every socio-economic class, and every state. Changing bank revenue models, new government regulations, increased taxes, pay and benefit reductions, potential new taxes (VAT, Cap and Trade, Carbon Energy), a new health mandate, and increased risk of unemployment will impact the financial status of every household. Consider how you as an adult are going to adjust to these changes. Then consider how informed and equipped our students will be to handle these challenges if financial education does not exist. Money management principals are imperative, as are solid foundations upon which they can grow and flourish are critical.

If financial education does not exist in your school or state, now is the time to take action. Make your voice heard. Be the catalyst for a bright tomorrow.

As a new group of students are about to graduate and head into the world, I cannot help but feel jubilation and duress. Yes, they have been schooled in many subjects, but how many have mastered personal finance?  I fear they are stepping into a world for which they are not prepared. The majority have not yet mastered the nuances of financial management and fiscal responsibility. The balance of money generation, debt repayment and investment are likely to be learned as life lessons rather than an inquiry and planning. 

If you know a student about to step into the world, please share a hard knocks lesson you wish you had known.

Congratulations to NJ for taking the lead in financial literacy!  In November, Governor Corzine signed into law a bill for financial education by which the Department of Education will establish a three-year pilot in six school districts after which it will consider implementing a statewide program.

I am proud to have contributed to this wonderful milestone as a citizen, member of the NJ Coalition for Financial Education, and advocate for financial literacy. My outreach to representatives, time spent teaching high school and adults about different aspects of personal finance, and the painstaking efforts to provide input on the personal finance curriculum for each grade (K-12) are transforming individuals and society. We are now working to help teachers develop lesson plans, activities, and to build the expertise and confidence to teach students the many facets of money management.

I invite you to participate in this transformation. Be a voice. Support financial education in your community.  Take a class to expand your knowledge. Fund a program. Together we can create the foundation for financial success.