The Importance of Financial Literacy in Schools

On this month’s podcast, we met with Brent May, principal at West Ridge Middle School here in West Monroe, to discuss the importance of financial education within the school system. 

Transcript

Speaker 1 (00:00):

Welcome back to another episode of the Live Better Podcast by Centric Federal Credit Union. I'm your host and Centric's Social Media and Marketing Specialist, Emma Banes. I'm so excited that you're here today. Every month we host a new episode where I'm joined by a guest to chat about all things living better and finances. Subscribe today so that you never miss an episode. Today we are joined by Brent May, who is the principal at Westridge Middle School, which is one of our community partners here in West Monroe to chat about the importance of financial education within our school system. So, Brent, thank you for being here today. And before we get started, can you just tell us a little bit about yourself?

Speaker 2 (00:41):

Yeah. Thanks for having us, Emma. Uh, first of all, let me tell you how much I appreciate Centric and all y'all do for supporting us at Westridge as a community sponsor. Uh, a little background stuff about myself. Uh, I'm pretty much born and raised here, uh, in West Monroe all my life. Went to West Monroe High School, uh, went to Louisiana Tech and graduated with, uh, Environmental Science and Biology degree and got my Masters in, uh, Ed Leadership at, uh, ULM and started working in middle school the day I graduated teaching science. And I've been at Westridge for about 15 years or so and never left. Love it. Uh, love of West Monroe. Got my roots planted here, and I plan on staying here.

Speaker 1 (01:16):

That's awesome. According to Forbes, over 60% of Americans live paycheck to paycheck. Do you think that that has anything to do with a lack of financial education for middle school and high school students?

Speaker 2 (01:30):

Uh, I certainly think it, it has somewhat of an effect. Uh, you know, it's such an equation and such a, so many variables to financial success. You know, a lot of these, uh, that status 60%, I think does, uh, depend on like environmental conditions, uh, where they live, you know, the economic status of the city or town that they live in or state, uh, as well as, you know, cost of living and stuff like that. So for, depending on those type of issues, um, a lot of that is just the fact of their income versus the cost of living where they are. Um, and that's unavoidable for some of them, but I, I do think having a stronger backbone in, uh, financial education could help alleviate some of those from time to time.

Speaker 1 (02:09):

Yeah, I agree. Um, you know, I think a lot of it too has, has to do with the mentality that they, they grow up with as far as money goes and their attitude towards money. And I do believe a lot of that starts at home too. Yes, definitely. Um, so from the latest data that I was able to find, I found that 27 states require high schools to offer personal finance classes, but only 15 of those states require students to take the class to graduate. So I found that Louisiana was not on that list. Do you agree with that?

Speaker 2 (02:42):

Uh, I definitely like the fact of schools, um, being required to offer these personal financial classes and any, they're called different name. Ours in middle school is called Journeys to Career. Um, but I'm okay with it not being required for students to take that class, but more have as an elective. Um, you know, and as an educator, we try to take a holistic approach, uh, on educating the child. And that's just so many fundamentals from literacy and ELA to science, to math and arts and everything like that. Because these students are so capable and exceed our expectations all the time. And we just try to give them the broadest foundation because we don't know what they're gonna do. Right. You know, when they graduate. So Ouachita Parish does a great job, in my opinion, of, you know, preparing them for the collegiate level or having our Jumpstart Program to prepare them for vocational, uh, trades and stuff like that. So I'm okay with it being, uh, an elective, but I do like the fact of it being required to at least offer it, uh, just because, like I said, we don't know what they're gonna do. We want to encourage and facilitate what their strength is, and if we forced it upon them, you know, that may take away from their ability to take an art class and they may be trying to pursue art at the next level and stuff like that. So I like the fact of it being an elective for sure.

Speaker 1 (03:49):

Okay. Yeah, that makes sense. Um, so I actually taught high school math for six years, um, not in Ouachita Parish, but, um, I was always so surprised at the lack of financial literacy that, that I saw in my own students. Um, you know, it seemed like they could do all these things in geometry, they could solve right triangles, but a lot of 'em just didn't really even know the difference between like a debit card and a credit card. Um, so do you think that this is the responsibility of the school system or the parents or maybe a combination of both?

Speaker 2 (04:19):

Uh, I think, I think any person in education will, will agree, uh, on the statement of the true success of a student is gonna require the investment of all stakeholders of that student, which is, you know, y'all being the community. And then of course the school laying the fundamentals, but also on the parents too, to reinforce these fundamentals that they learn in school. Um, a prime example, my students, uh, my, my personal kids are eight, six, and four. Uh, they all attend Drew Elementary and several of them are getting to that age where they're being taught some of these fundamentals at school, uh, budgets and stuff like that. So as a parent, it's a little challenging and takes a little more patience. But like for example, when we go to the gas station now we're trying to take some more time to be intentional. If they pick out a candy bar that they want, I get them to tell me how much it is, how much they need, and then I get them to count out the change and just stuff like that. So being intentional and being supportive from all stakeholders, I think is, uh, the key component for success for that.

Speaker 1 (05:13):

I completely agree. I mean, by all means, it takes a village. Absolutely. And, um, I, I am in no way insinuating that I think it falls on the responsibility of the school system because I don't. I think parents play a bigger role in financial education for their children bigger than anybody else. Um, and you know, so some kids grow up with a strong background in that area and some grow up with no knowledge of it at all.

Speaker 2 (05:38):

Right, right. And, and I do think the school definitely, you know, in these classes and, uh, I think our teacher for Journeys to Career does a great job. She invites, uh, guests from Centric in all the time to go over budgeting and stuff like that. Um, so laying the fundamentals down at school I think is definitely a key component as well as, as course as the parents reinforcing that.

Speaker 1 (05:55):

I agree. I, I remember one specific instance, I was teaching a geometry lesson and somehow we got a little sidetracked and started talking about credit scores and taking out loans and what, what was required and what a credit score even was. And they were so intrigued. So this was a group of 10th graders and they were very intrigued and wanted to know more and didn't really have a clue. And I was like, wow, this is, you know, which I know teachers are very, you know, they have to follow their curriculum and, and that sort of thing. Um, but I thought I could really enjoy teaching a class just on this because they just don't know, you know? And you know, there is some elementary stuff where they, in elementary they learn, you know, a little bit about budgets and how to count money and things like that.

Speaker 1 (06:39):

But as far as I know, beyond that, unless they take that elective, you know, there's not a whole lot of that. And I think there is a willingness to learn because I'm a part of the BizKids program here, and I've seen that, you know, when we go into the classroom and we calculate car payments and things like that, they're always really interested in and just can't believe, you know, how all that works. So, um, I think there's a willingness out there. Um, I think it just is gonna take a collaborative effort with everybody, you know? Yeah, definitely. To kinda to get their knowledge up to par before they are thrown out into the real world. Right. Um, so I know you said that you didn't think it should be mandated to take a financial literacy class, but if Louisiana were to mandate that at some point in the future, what kind of things do you think should be a part of that curriculum?

Speaker 2 (07:25):

Well, and you kind of touched on this, uh, briefly a while ago. Um, just some of the basics, you know, before being thrown out into the real world, um, how to open the bank account. You know, what's the difference between a debit account and a savings account, um, paying bills on time and the importance of not incurring late charges and which in turn helps build credit scores. And a lot of 'em don't know what a credit score is and how, how valuable that is down the road. Um, I would say balancing a checkbook, but I'm sure that's become a little more obsolete. But still the principle of, of a household budget, you know, balancing your income versus your expenditures, um, your needs versus wants, and I see this in middle school a lot. If you look at concession on Mondays and Tuesdays, everybody brings in big bills, you know, 5, 10, $20 that the parents gave them for the week.

Speaker 2 (08:10):

Right. And the intent from the parent was for them to spend it for the week. Yeah. And they loaded up like it's Christmas time on Monday, and by Wednesday they're like, well, what do I do now? So I definitely see, you know, a budget, income, expenditures being discussed using debt responsibly. Um, I personally don't have any issues with debt as long as it's responsible. You know, my wife definitely doesn't have any issues with the incurring debt, so maybe she's not listening on this one, but using it responsibly and how that can also show in a timely, paying your bills in a timely manner can increase your, uh, credit score. Saving money for retirement. It's very, very hard to, I know in middle schoolers and I'm sure in high schoolers as well, to talk about the future and how important saving money is for down the road and investing. Um, cause right now it's, they're all about today. Right. But, you know, as we get older, it's looking forward to the future. And so I, I think just some basic principles, um, on, on those things are, are all, could be a good step for that curriculum.

Speaker 1 (09:06):

Yeah, I agree. That's awesome. Really good stuff. Especially what you said about credit. Um, you know, credit gets a bad rap, I think. Yeah. But some credit is, is good credit and you know, learning the difference between that before you actually get credit. Yeah. You know, it would be very beneficial. Um, so do you think as far as financial education goes, that the earlier that it's learned, the better? I mean, even as young is, like we said, lower elementary.

Speaker 2 (09:31):

Oh, I definitely do. Um, I mean, prime example for me, uh, when I transitioned out of college, you know, all my previous part-time jobs were paid biweekly. And I moved into a school system and I got paid monthly. And I wasn't prepared on how to manage that. Cuz the first week, you know, I was living large like a king. And then the next three weeks I was like, well, what do I do now? Yeah. So it's very similar to what I saw with my kids at Concession, you know, just 20 years down the road. Um, but I think the earlier the better. Um, I've already mentioned my kids, they go to, uh, Drew School and uh, they just, just recently this week, it's funny the timing of this, but um, they were my two oldest ones, the eight and six, uh, girls, they were given projects and it was a real cool idea. I forget the name of it, but they were allowed to go shop at like a mini market at school and just some little trinkets that they could buy friends or family for Christmas. And everything was priced out. They had a budget sheet and they had to come home and tell us, you know, what they're gonna buy total up, how much it costs, and how much they needed and stuff like that. So I think the earlier, uh, always the better and go ahead and preparing them with that foundation of a financial literacy for sure.

Speaker 1 (10:35):

I agree. Uh, when my kids get birthday and Christmas money, I don't let them hold onto it at all times. Like we keep it until they're ready to spend it. But what I've realized is when they know they're about to spend their own money, they tend to hold back a little bit and not go too big, you know, and pick out the most expensive thing. Like, they don't wanna actually blow it when it's theirs. And I think that kind of teaches them, you know, you know, when it's your own money in your hands, you have to be a little more responsible, so. Absolutely. And mine are seven and nine, so they're pretty young and, and you know, I like watching them.

Speaker 2 (11:06):

Well, they have no problem spending my money for sure.

Speaker 1 (11:08):

Exactly. Mine don't eitger.

Speaker 2 (11:09):

When we, uh, and the teachers did a good job talking to the, uh, to them about, this is your money. So they actually went and got their piggy banks and started, you know, getting money out. It was like $6 or $8, but going through and, and adding up. So it was a real cool, uh, cool event to see.

Speaker 1 (11:23):

Oh yeah. That's awesome. So another Forbes statistic that I found said that FINRA, which is the Financial Industry Regulatory Authority, estimates that 65% of those with a higher financial literacy have a three month emergency fund set aside as opposed to only 42% of those who have little to no personal finance skills. So, you know, it makes sense that the more you were exposed to personal finance skills growing up, you would have more responsibility and set, set more money back and make sure that you don't overspend so that you can save. So, um, I think that kind of just goes back to what we said and the importance of the whole village. The, the teachers, the principals, the moms, the dads, the babysitters, grandparents, just everybody in their life contributing in some way and not necessarily on purpose, but, you know, I found with my own kids, I can make examples out of little things that might, you might not even think about, you know, um, you know, you find some change around the house and you can make a little lesson about that. You know, like, what, what would be wise to use this for? Is this smart? Let's take this to canteen for school, or let's save it for next week at can, you know, just little things like that that

Speaker 2 (12:33):

Yeah. And I think it's the, um, it's kind of go back to what we've said. It's, it's that mindset. Um, I think when you asked about what should be in a curriculum and one of the things with saving money for retirement, I think a lot of 'em just have that, uh, their primary mindset is today, today, today, spend, spend, spend. And you know, it's creating a budget and looking towards the future is, is part of that retirement. And trying to think past today. And that financial literacy is probably the key component to me getting out of that would be how to just plan for the future.

Speaker 1 (13:03):

Right. And I remember being in middle school and high school and the future was the absolute last thing on my mind. So you could have talked to me till you were blue in the face about personal finance and I really wouldn't have cared a whole lot. But at the same on, you know, on the same side of that coin is it wasn't really modeled for me growing up. So I didn't really care about it until I absolutely had to. And I got married and I was super broke. Right, right. And so, you know, it, it was never, the importance of it was not stressed to me. Um, so teaching it to me in school, I don't know that it would've done a whole lot of good anyway.

Speaker 2 (13:40):

Well, I think, like you said, it's, it's easier to teach you than I think people realize because the opportunities to use these examples are throughout every day. Right. Everywhere. Just, you gotta realize those opportunities and use those moments as teaching moments for your kids. Right.

Speaker 1 (13:52):

Just utilize 'em when, when they come up. Right. Um, so I did wanna mention another thing about Louisiana. The average Louisiana citizen has a credit score of around 630, which with most, most financial institutions won't even work with you with a credit score that low. And, you know, we have a higher level of poverty here. And I do think that, um, you know, the low personal finance skills that people around here tend to have contributes to that. Um, do you think that if this were pushed a little more in school, that that those statistics might be a little bit better?

Speaker 2 (14:29):

Yeah, I, I think, um, if it was, if students were exposed to it a little more, they could dive into it, the curriculum a little deeper. You know, cause like we've mentioned, debt oftentimes just has immediate negative connotation, but paying off debt over time and showing that consistency and the ability to constantly make those payments in turn has a positive effect on your credit score, which allows you to make those bigger purchases down the road. So, but off the, you know, on the front end, if a student just hears the word debt, they probably think what they see on the news or TV and oh, that's bad. Right. And they don't realize that if it's handled in the right way, it could have a benefit on things such as your credit score.

Speaker 1 (15:05):

Exactly. Yep. It's just a, a lack of knowledge. And, um, you know, I think that's one thing we try to do here at Centric when we go into the schools with our BizKids program, is just kind of increase the awareness and, and maybe they don't fully understand every little detail of what we, what we go over, but they do end up with a little bit better of an awareness, I think, of the overall aspect of personal finance and why it is important.

Speaker 2 (15:29):

Yeah. And I've, I've seen, um, especially with our Journey to Career class, there are so many different, um, concepts that are covered when the BizKids program comes in, or a lot of times, um, she'll bring in just various, um, businessmen and women throughout the parish, uh, completely varied careers. So they can just have Q and A on real life experiences, whether it be a fireman, a banker, you know, insurance, sales, anything like that. And they can go over more detailed curriculum about it, what my actual day looks like, and if you plan on pursuing this career, you know, what do you need to do to get ready for that? And some of it is tailored to more of financial backing.

Speaker 1 (16:04):

That's good. Our, our kids need that. Yeah. Around here. You know, they, they need to be exposed to business and entrepreneurship and, and personal finance and all that kind of goes together. And I think that's awesome that they do that in that class. I think all of our kids need that. For sure. Um, is there anything else you wanted to add before we kind of wrap this up?

Speaker 2 (16:24):

Uh, no. Just once again, I, I want to thank Centric for all y'all do the support Ouachita Parish and specifically Westridge. Um, I can't stress enough how invaluable that, um, those visits are for the BizKids program. Um, you can tell what, what days they're in there and invested in the kids because the kids come out talking about it. You hear 'em talking about at lunch, you see their projects. Uh, they just recently made food trucks and trying to pitch their business to be the best business and most attractive business. So it pays dividends far beyond what we can see. And, and that's the cool thing about education. And I think, uh, uh, our school personally does a great job with it and Ouachita Parish does a great job with it. Um, you know, providing them with the curriculum, preparing them for the future as well as, uh, collegiate future or as well as our Jumpstart Program prepared 'em for vocational, uh, trades as well.

Speaker 1 (17:07):

That's awesome. It's so good to hear. Well, thank you so much, Brent, for being here today, and I hope all of our listeners were able to learn a little about how financial literacy is impacting our community. Thank you for listening to our podcast and tune back in next month for another episode of the Live Better Podcast by Centric Federal Credit Union. Don't forget to subscribe on your favorite podcast platform to ensure you never miss out on helpful tips. Like us on Facebook at Centric Federal Credit Union, and find us @MyCentric on Instagram, Pinterest, TikTok, and YouTube. You can find information about today's topic, our monthly blog, and more at mycentri.org. Centric is federally insured by the NCUA.