Financial Literacy Transitions from High School

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Financial Literacy Transitions from High School

• OHIO ASSOCIATION TEACHERS
• OF FAMILY AND CONSUMER
• SCIENCES (OATFACS )
• Natala K. (Tally) Hart
• Ohio State University
• www.hart.149_at_osu.edu

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Financial Literacy Timeline

• 4th/5th grades concepts of savings and
  investment
• Steps to college as second largest investment
• 6th-8th grades investment steps
• Power of compound interest, saving
• Taking the right classes
• Use of time
• Building personal portfolio

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Financial Literacy Timeline contd

• 9th/10th grades beginning financial decisions
• Jobs what comes out of a paycheck
• Organizations financial management of others
  money
• Insurance
• Steps to college
• 11th/12th grades
• Understanding credit and credit cards
• Credit scores
• Comparing financial aid awards

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Background for OSU Financial Literacy

• Initial study regarding student loan defaults
• Led to information about consumer debt
• Determined problem with consumer finance for all
  income and academic achievement levels
• OSU Student Affairs Spending Habits Study
• Lumina Foundation study of impact of resultant
  financial aid packages in increase retention

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What Can/Should Happen in High School for
Long-Term Results?

• Working as key investment
• Wide variety of what qualifies as work
• How paychecks are determined
• Role of work in classroom toward college future
• Organizations
• Time invested
• Role of finances in organizations
• Insurance
• Lessons for new drivers
• Steps to college and programs beyond high school
• Math
• Good grades in the right subjects

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What Can/Should Happen in High School for
Long-Term Results? Contd.

• Credit
• Understanding APR
• Review of credit card applications
• Lessons on minimum repayment
• Number of credit cards may be critical
• Credit scores
• What gets counted and why
• Why score is important to educational future
• Understanding financial aid
• Compare sample award letters
• Relationship of good grades to admission and money

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Most Important Learning Outcomes from High School
Years

• How you invest time in high school is critical to
  future
• Limit credit card use, if at all
• Know deadlines as key to getting money for
  college and programs beyond high school