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Oklahoma schools required to teach high school students to manage finances

Oklahoma students, effective this May, now must demonstrate an understanding in banking, taxes, investing, loans, insurance, identity theft and eight other areas to graduate. Teachers are required to certify students’ working knowledge in each area.
by Paula Burkes Modified: February 23, 2014 at 10:00 am •  Published: February 23, 2014

Statewide, 11 banks have paid for 87 schools, from Waynoka to Ada to Deer Creek to Norman, to use the software of Washington, D.C.-based EverFi Inc.

Company spokesman Brian Cooley said sponsors pay several thousands of dollars per school for the software which, through experiential learning, puts students on the floor of the stock market, at a bank’s teller window and elsewhere, he said. It takes students six to eight hours to complete the program, he said.

Bank of Oklahoma alone is sponsoring 29 schools in the metro area. “In the very near future, the students participating in the program will make major decisions regarding paying for higher education, establishing their own households and applying for credit, and those choices can have a lasting impact on their lives,” chief executive Marc Maun said.

Meanwhile, The Oklahoma Council on Economic Education frowns on computer-based learning as a sole teaching tool for financial literacy, Lee said, noting Oklahoma’s three state-specific standards aren’t included in the software program. “Our preference is for a teacher to interact with students to meet the integrity of the law,” she said.

 

Are you financially smarter than a high-schooler?

1. About how many years would it take for $1,000 to become $2,000 if $1,000 is deposited in a savings account with an interest rate of 7.2 percent?

a. 7.2

b. 10.0

c. 14.4

d. 20.0

2. Which type of insurance protects a person from loss from lawsuits?

a. Liability

b. Casualty

c. Term life

d. Collision.

3. Which of the following taxes is regressive?

a. Sales tax

b. Federal income tax

c. Oklahoma state income tax

d. A tax where the amount paid depends on income

4. In Oklahoma, MOST consumer protection laws are enforced by the

a. Oklahoma Bankers Association.

b. Oklahoma Department of Treasury.

c. State Office of Personal Finance.

d. State Attorney General’s Office.

5. Stocks and bonds are similar in that both

a. Have a guaranteed rate of return.

b. Provide ownership in a business.

c. Have relatively high levels of risk.

d. Are tied to the rate of inflation.

6. Liquidity is defined as

a. How easy it is to turn an item into cash without losing any money.

b. How easy it is to lose money when you invest in a risky business.

c. The ability of savings to earn interest.

d. The potential loss from rising prices.

7. Money market mutual funds

a. Are always federally insured from FDIC.

b. Are only available from banks or stock brokers and are primarily designed for high risk investors.

c. By design provide lower rates of return than savings accounts because the money is invested in very short-term investments with a low risk.

d. Are designed to provide higher rates of return than savings accounts as the money is invested in very short-term investments with a low risk.

8. Compound interest is calculated

a. On the principal plus any interest they have already paid you.

b. On the principal minus the amount you are paid annually.

c. On the principal but not on the interest earned.

d. Using a complex formula that prorates interest over the life of an investment.

ANSWERS:

1-B

2-A

3-A

4-D

5-C

6-A

7-D

8-A

by Paula Burkes
Reporter
A 1981 journalism graduate of Oklahoma State University, Paula Burkes has more than 30 years experience writing and editing award-winning material for newspapers and healthcare, educational and telecommunications institutions in Tulsa, Oklahoma...
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AT A GLANCE

Requirements

The 14 areas of instruction that all Oklahoma public school students must show proficiency in before graduating high school, this May and afterward, are:

•Earning an income

•State and federal taxes

•Banking and financial services

•Balancing a checkbook

•Savings and investment

•Planning for retirement

•Loans and borrowing money, including predatory lending and payday loans

•Interest, credit card debt, and online commerce

•Identity fraud and theft

•Rights and responsibilities of renting or buying a home

•Insurance

•The financial impact of gambling

•Bankruptcy

•Charitable giving

SOURCE: Oklahoma Council on Economic Education

By the numbers

Among Oklahoma households:

•10.9 percent lack banking accounts

•40 percent lack savings accounts

•62.6 percent have subprime credit

•43.8 percent have little or no savings to cover emergencies.

Oklahoma's bankruptcy rate is 3.1 percent per 1,000 people.

SOURCE: Corporation for Enterprise Development

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