Posted on Tue, Oct. 27, 2009
The pervasiveness of financial illiteracy in the United States is underscored by these gloomy statistics:
Although most parents think it's important to discuss personal finance with their teenagers, more than three-quarters flunked when tested on their own knowledge of personal financial management, according to a survey by the University of Kansas.
In another survey, more than half of high school seniors flunked when their overall financial literacy was put to the test.
Now H&R Block Inc. hopes to improve those grades with a new program it's rolling out.
The Kansas City, Mo.-based tax-preparation company is distributing more than $1 million to subsidize high school personal-finance programs that feature interactive computer exercises, online videos, written course materials and lesson plans. More than 2,000 high schools nationwide have signed up to participate.
"H&R Block sees millions of clients every year, and after we see these clients we realize - and studies have shown - that people don't understand what it means to be financially fit," said Amy McAnarney, executive director of the Tax Institute at H&R Block, which researches and analyzes tax laws and is overseeing the program.
Although the focus is on teenagers, parents also will get help. Block has designed a Web site, http://www.hrblockdollarsandsense.com, with pointers on talking to teens about financial matters.
The computer-based lessons for teens were developed by Knowledge Matters, a maker of educational software. The software simulates real-life situations such as looking for an apartment, finding a job, opening a bank account or buying groceries.
Each of its 18 lessons focuses on a discrete financial concept - including fixing credit, buying a car and understanding insurance and investing for retirement. The idea is to allow teens to make real-life decisions without suffering adverse real-world consequences when they make a mistake.
(c) 2009, The Kansas City Star.
Distributed by McClatchy-Tribune Information Services.
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