By John Mann, president and CEO of Chelsea State Bank
Drawing on the success of Chelsea State Bank’s partnership with the EverFi™ – Financial Literacy Program and the Chelsea and Dexter School Districts, we will continue to offer our financial literacy program during the 2015-2016 school year.
Follow-up testing clearly supports our decision. After completing EverFi’s financial literacy courses, students are more knowledgeable and better prepared to manage their financial futures. After taking the financial literacy course, Chelsea and Dexter students increased their scores on assessment tests by an average of 69 percent.
Because of the success of this program, we believe continuing EverFi’s financial literacy course in our high schools is the right thing to do.
We now know that after completing the course, our students know more and therefore are more confident about making financial decisions. Follow-up testing found participating students better prepared to make the financial decisions that they will face as they move through their teen years and into young adulthood.
EverFi asked students whether they felt prepared for a series of personal finance tasks, and after taking the course, 22 percent more students felt prepared to handle the important financial matters that lie ahead of them.
Here are some of the actions Chelsea and Dexter students are now prepared to do after participating in the EverFi™ – Financial Literacy Program last year:
- 70% of students are ready to choose the right type of bank account for their money, up 47% from before the course.
- 65% of students are ready to check their credit score and understand what it means, up 81% before taking the course.
- 64% of students are ready to apply for financial aid or loans to help pay for college, up 43% from before the course.
I believe we will realize similar outcomes in the 2015-16 school year at Chelsea and Dexter Public Schools.
We all know that making any financial decision is challenging without the proper knowledge. The chance to go into debt at an earlier age today is staggering. More students are paying tuition with credit cards every year in addition to charging schoolbooks and other expenses. These decisions can have huge implications.
When there isn’t a foundation to make an informed decision, it is easy to get into a financial setback at a very young age.
Student loans are costlier and now account for more debt than credit cards. Student loans have now passed credit card debt for the first time in the U.S. The costs of education have grown, while incomes and government aid aren’t keeping up. Students are taking on more debt.
Financial literacy is a skill that all young people need to succeed. When these students enter the real world, whether it is college or the work force, responsibly managing their finances is a key to their ultimate success in life.
As the local community bank, we believe strong families and schools help build strong communities. Educating our students in financial literacy is the right thing to do. It’s also another way we “keep it local” supporting our local communities.
