Financial literacy goes national

(FOX Providence) - For the third year in a row, Rhode Island high school students will have the chance to take part in the national financial capability challenge.

The challenge is a federal campaign underway to help young people take charge of their financial futures.

The program's goal is to increase the financial knowledge and capabilities of high school students across the country.

Jim Hedemark of the Rhode Island Jump$tart Coalition joined the Rhode Show to talk more about the initiative.

So how does the National Financial Capability Challenge work?

Treasury Secretary Geithner and Education Secretary Duncan are leading efforts by the Obama administration to increase the personal financial education of all Americans, especially high school students in the case of the Challenge.  Teachers register their students for the challenge, download an Educator Toolkit, prepare their students and administer an online exam testing the financial know-how of their students.  The Toolkit has interactive online lessons and Spanish language materials to help not only with the online exam, but to provide year-round classroom materials for financial capability instruction.

High school teachers should visit http://challenge.treas.gov to learn more and sign up. There’s a message from Secretary Duncan there, as well as lesson plans and a forum where schools can exchange best practices ideas.  The exam takes about half an hour to administer and will be available from March 7th through April 8th.  The top two scorers at each school, plus all students scoring in the top 20%, will receive National Financial Capability Challenge Award Certificates. All participating educators will receive an official certificate, and educators from schools and states with the highest proportion of participating students will be recognized as well.

And proving that personal financial education really pays, the Charles Schwab Foundation will be offering $1,000 scholarships to 20 students, selected at random, from among the top 10% of high-scoring students nationally.  In addition, five $1,000 scholarships will go to students who score in the top 10% from low-income public schools.

How did Rhode Island students handle the Challenge last year?

There were five perfect scores from Rhode Island schools last year and we ranked 6th in terms of state participation level so we really want to build on that strong track record and see even more participation this year.  The RI Jump$tart Coalition works with high schools in the state which have been really active in terms of promoting personal financial capability.

It’s really encouraging to see the Treasury and Education departments coming together to put so much weight behind this important financial capability program.  They are leading efforts to underscore the importance of giving young people the skills they need to make smart choices—about earning and spending, saving and investing, using credit wisely, avoiding fraud and paying for college.  These are the life skills American students need to have as they drive our economy forward in the future.

Click here for more information on the initiative.