Helping Students Learn the (Financial) Facts of Life
State Superintendent Randy Dorn will preside today over a ceremonial adoption of the standards – the first of their kind in Washington. The ceremony was sponsored by the Financial Education Public-Private Partnership, which was tasked by the state Legislature to write the standards.
Dorn has championed financial education since he took office in 2009. “Our financial crisis in 2008 and 2009 might not have hit the country as hard if more of us really understood what banks were doing with home loans,” he said. “Students need to understand financial terms. They need to know what interest is, how to calculate taxes, when to begin investing. Giving them those tools may help us avert the next financial crisis.”
The standards – based on national standards from the Jump$tart Coalition and the Council for Economic Education – are divided into six groups of related topics:
Implementation of the standards will begin immediately. Typically, testing on new standards occurs five years after adoption. The full implementation plan for the standards will be available soon.
- Spending and Saving. Students will apply strategies to monitor income and expenses, plan for spending, and save for future goals.
- Credit and Debt. Students will develop strategies to control and manage credit and debt.
- Employment and Income. Students will use a career plan to develop personal income potential.
- Investing. Students will implement a diversified investment strategy that is compatible with personal financial goals.
- Risk Management and Insurance. Students will apply appropriate and cost-effective risk management strategies.
- Financial Decision-Making. Students will apply reliable information and systematic decision-making to personal financial decisions.
About the Financial Education Public-Private Partnership
In 2004, the state Legislature established the Financial Literacy Public-Private Partnership. Three years later, the fourth state learning goal was changed to include “finance.” TFLPPP was recommissioned in 2009 as the Financial Education Public-Private Partnership (FEPPP).
The 2015 state Legislature passed Substitute Senate Bill 5202, which required the FEPPP, with OSPI, “to integrate financial education skills and content knowledge into the state learning standards.”