By Kate E. Salute
In my research, I stumbled on a test that anyone can take on the Working in Support of Education, or WISE, Web site (www.moneypower.org). I got three out of 10 questions about finances and economics right, and these are questions that anyone who¹s ever used money should get right. To be fair, I¹ve never tested well ‹ I just about had a breakdown over the SATs ‹ and I always struggled in economics courses, but three out of 10 is pretty bad. I¹ve always been more of a five- or six-out-of-10 student, which isn¹t great, but it¹s better than this.
Luckily for me, though, the fact that I have less than an adequate knowledge of finances doesn¹t mean I¹m teetering on the brink of bankruptcy or drowning in debt. My parents always taught me to be responsible with money and credit, and I tend to be a frugal spender. You¹ll never see me wearing a pair of jeans that cost more than $35 unless they were a gift. But to this day I have no real understanding of what an APR is beyond knowing the words Annual Percentage Rate and vaguely understanding that it¹s not good if it¹s high. And when it comes to investments, financing and even insurance, I might as well wear a dunce cap.
But I feel comfortable admitting it in public because I¹m certain I¹m not the only clueless one out there. WISE and the Financial Literacy Coalition reported that nearly half, 47 percent, of the 6,226 high school seniors who took the Financial Literacy Certification Test reported not having a bank account of any kind. Only 34 percent reported using a credit card. Debit cards were used by 30 percent for getting cash or for making purchases.
Yet the majority of them will go off to college with one or all of these things. At least Malverne High students who took the course and passed the test are armed with certified knowledge of the proper use of cards and accounts. I¹ll let you know next week if West Hempstead High students are learning as much.
When I was in high school, if it weren¹t for the business law class I elected to take, I wouldn¹t even know how to balance a checkbook. Friends who didn¹t take the course often found themselves tapped out in their freshman year of college, saying, ³I don¹t know where all my money went.²
Personally, I think a financial literacy course should be mandatory for all high school students, and even though I¹m not a test advocate, I do think a certification is a nice addition to any resume. I know I would have benefited from it.
