Schools looking to Carroll for lessons in financial literacy

By Laura Petersen
Advocate Staff Writer

Published: Monday, September 14, 2009 1:55 PM EDT

Maryland Schools will be looking to Carroll County for guidance as the state moves closer to mandating students learn the basics of financial literacy before graduation.

Carroll schools began to require students to pass a financial literacy course in order to graduate two years ago, according to Steve Johnson, assistant superintendent of instruction for the school system. This year’s junior class will be the first required to pass the course, which can be taken at any grade level, but is more relevant for students about to graduate, he said.

“They are about to consider jobs, cars, credit cards, saving money and planning for college then,” he said. “This is one of life’s most relevant skills to have – how to manage money.”

The driving force behind the initiative was Superintendent Charles Ecker, who recognized a growing need for financial literacy education in schools, said Del. Susan Krebs, R-District 9B.

“I think we were a bit ahead of the curve seven or eight years ago,” she said. “Now we’re hitting at the perfect time, and we’re ready to go.”

As a former member of the Carroll County Board of Education and an advocate for removing credit card solicitors on college campuses, Krebs said she, too, saw problems on the horizon because of a lack of financial literacy education in schools.

“Kids were getting multiple credit cards, one way or another, and not being careful about how much credit they get, or use,” she said. “At least now we are making people aware of the risks they are taking.”

A study released in April by Sallie Mae, a higher education-financing company, found that the average undergraduate had nearly $3,173 in credit card debt last year. According to the same study, last completed in 2004, students carried an average of $2,169 in credit card debt.

“We are teaching students the things you need to know in order to realize that when you get that piece of plastic, you have to pay it off,” Johnson said.

Marjorie Lohnes, supervisor of career and technology education for the school system, said financial literacy education has always been a part of the curriculum, but the world of modern finances is constantly changing.

“We didn’t even talk about identity theft years ago,” she said. “The state of the economy has changed so drastically.”

In recent years, people have stopped choosing between what they need and what they want, she said.

“Everybody stopped choosing and everyone was in trouble,” she said. “It’s not about math or economics now; it’s really about how you think, what your values are, and what your wants and needs are.”

Lohnes has supervised financial literacy education in Carroll schools for 20 years and now sits on the state advisory committee for designing curriculum. Carroll’s financial literacy curriculum outlines what credit is, legitimate ways to obtain credit, the power of compounding interest and how to successfully budget.

As a member of the state Task Force to Study How to Improve Financial Literacy, Krebs said Carroll schools have been instrumental in helping the state develop a curriculum for teaching financial literacy. The task force has also consulted with The Maryland Coalition for Financial Literacy, which has members in the business community and the education field, including Ecker.

“They have real life lesson plans and exercises that are relevant for children going into college or the work force,” Krebs said.

Lohnes said giving students the knowledge is the first step. Time will tell whether or not they utilize the information, but if they don’t, a frightening trend is bound to continue, she said.

“More students are dropping out of higher education because of financial debt, not lack of academic capability,” Lohnes said. “That’s scary.”

In 2006, the most recent data available, USA Today reported that 29 percent of youths said they decided against pursuing their education future because of general debt.

Reach staff writer Laura Petersen at 410-857-3317 or laura.petersen@eldersburgadvocate.com.