Half of college undergrads have four or more credit cards, up from 43 percent in 2004 and 32 percent in 2000. According to a report published by large student loan provider Sallie Mae, the average college graduate has nearly $20,000 in debt.
That’s why the Connecticut Society of Certified Public Accountants has published a workbook aimed at teaching high school and college students about personal financial management.
“Me, Myself, My Money,” now in its second edition, provides teachers with a combined 18 lesson plans and 47 activities that are aligned with the Connecticut Department of Education’s and National Business Education Association’s learning standards for secondary education. It’s getting attention in the state’s high schools, has been embraced by Eastern and Western Connecticut state universities, and is under consideration for use by First Year Experience instructors at UConn starting in September.
Topics include credit cards and credit scores; managing debt; financial planning; insurance; investments; saving and banking.
So far, more than 100 teachers in Connecticut have requested the group’s financial literacy curriculum, written and prepared by Joe Bittner, an accounting professor at the University of Connecticut at Stamford.
“From kindergarten through 12th grade, students take the classes they need to graduate high school. And in college, they sign up for the courses that will allow them to be what they want in life,” said Bittner.
“But young people need to know how much their career choice is going to pay them and whether that income will support the lifestyle they want,” he said.
“Budgeting has to be emphasized,” said Bittner. “When I teach, I ask the students to prepare a budget. Under expenses they’ll say car payments, the mortgage, and utility bill. They should be saying how much they’ll save. That’s the first thing that should be on the list and whatever is left determines what expenses you can afford.”
Bittner, who teaches students about budgeting, savings accounts, car payments, mortgages and utilities bills, also puts special emphasis on credit cards, interest rates and penalties associated with borrowing.
“Most high school students have no clue about financial matters,” said Terri Lynn, a teacher who uses Bittner’s finance and accounting courses at Old Saybrook High School.
“For example, they are amazed at what happens when you accumulate debt on a credit card with the compound interest, and how long it will take to pay the balance off,” said Lynn. “They do not understand what it means to come out of college with a $100,000 loan to pay back. They donˆt have a concept of why it is important to save and invest early.”
Previous generations paid cash for virtually everything, said Bittner. Once credit cards came onto the scene, if they used one, they would pay it off when the bill arrived. That’s not the case with younger people today.
“We want to create awareness about interest, how much they’ll pay. Teach them to look for the interest rates, penalties and fees, grace periods,” said Bittner. “This isn’t only to teach them how to be financially literate, but information literate, where should they go to get more information.”
Bittner, a CPA who holds a bachelor’s degree in finance and an MBA in accounting, both from University of Connecticut, taught high school in East Haven and Bristol and served as manager of education programs for the American Institute of CPAs, where he created products and developed curriculum to enhance accounting education at the high school and college level. Bittner also wrote and published the AICPA’s “Takin’ Care of Business” handbook.
