High School Financial Planning Program Helps Teens Prepare for the Real World

Marsha Goetting
MSU Extension Family Economics Specialist

9/1/99 - BOZEMAN—This year, teenagers across the country will spend over 122 billion dollars on cars, food, clothes and other items. Yet many of them have little or no understanding of basic financial principles, such as using credit cards, putting money in a savings account, or balancing a checkbook.

With the High School Financial Planning Program (HSFPP) from the National Endowment for Financial Education (NEFE) and Montana State University Extension, teens in Montana are getting a hands-on look at the world of personal finance. Students in the program are introduced to a variety of important financial topics—many of them for the first time—such as making a budget, analyzing paycheck deductions, and buying insurance. Over 8,000 Montana high school students have participated since 1991.

Marsha Goetting, family economics specialist for MSU Extension, appreciates the NEFE/Extension partnership because she views it as a program with truly tangible results.

Goetting said that a recent study of HSFPP participants indicates that today’s high school students can and do respond positively to instruction aimed at improving their money management skills. The survey results showed that 86 percent of students who participated in HSFPP showed an increase in financial knowledge. Over half began to set aside money for needs and wants, and about one-third began using a spending plan or budget.

Even three months after completing the program, students showed continued increases in financial knowledge, skill and confidence. Fifty-eight percent of students said they had improved their spending habits, and 92 percent said they believe the way money is managed affects their future.

The NEFE High School Financial Planning Program teaching guide is available free to all high school teachers who agree to teach a minimum of 10 hours of financial management. Student workbooks are also provided at no charge.

SIDEBAR: Teen financial program in action (Victor, Montana)

For JoAnne Stewart, a family and consumer science teacher in Victor, the High School Financial Planning Program (HSFPP) offers a way to show teen-agers how to prepare for the real world of dealing with money. The program is offered free-of-charge to high school students through the National Endowment for Financial Education (NEFE) and Montana State University Extension.

"This may be one of the only times that kids ever talk about finances," Stewart said, adding that many students use the financial lessons to prepare for buying a used car or stereo equipment.

"They really like to try out the investments and check them in the newspaper," she added.

Stewart said she first learned about HSFPP in 1991 at a family and consumer science teachers’ convention. Over the past eight years, Stewart has used the lessons many times as part of various consumer education courses at Victor High School. Stewart added that her son Nick, who was a high school junior when Stewart first got involved with the program, also benefited from the real-life lessons.

After high school, Nick graduated from the University of Montana in business and finance and passed his securities 6 test, giving him the ability to sell mutual funds. While working at a brokerage firm after college, Nick returned to Victor to speak with high school students about buying stocks and mutual funds. Today Nick lives in Kirkland, Wash. and works for the mutual fund division of SAFECO.

"He is making more money than his mother is!" laughs Stewart, who credits the high school financial planning program with making a positive difference for her son and all her high school students.

Send questions or comments to Goetting and Suzi Taylor, MSU Communications Services, Bozeman, MT 59717 or email them at taylor@montana.edu.

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