Teens' personal finance knowledge woefully inadequate

High schools encourage students to take algebra, geometry and calculus classes, but national polls find that students also need a deeper understanding of basic financial concepts, according to an article in the Sacramento Bee.

"Kids too often go out into the real world totally unprepared for things that will affect their everyday lives: using a credit card or not using their 401(k) because they don't know what the heck it is," the story quoted Mira Loma High School economics teacher Chad Posner. "The sooner they know this stuff the better, so they won't have to declare bankruptcy in their 20s and will be better prepared for their own retirement."

In California, students are required to take a one-semester economics class, but personal finance instruction is optional. The Bee story, written by Claudia Buck, ran at the end of last month and was picked up this week by the Bellingham (Washington) Herald. Among the resources offered in a sidebar was a plug for the UC Cooperative Extension teen financial education curriculum MoneyTalks4Teens.

MoneyTalks (Cuida tu dinero in Spanish) is a course designed by a team of UC Cooperative Extension youth advisors to present money management issues that are important to teens: money personality, simple ways to save, smart shopping and car costs. From its inception, the developers were dedicated to creating a program that meets needs expressed by teenagers. They focused on what and how the teens wanted to learn. The curriculum is presented in a lively, colorful, teen magazine-style format and the online component includes videos, games and other activities.

The MoneyTalks website is at http://moneytalks4teens.ucdavis.edu.