Rhode Island Financial Literacy Standards
Gathering data for its biannual National Report Card, Champlain College awarded Rhode Island an “F” in financial education criteria during 2015. Champlain believed the Ocean State merited a failing grade because no personal finance class is required for high school graduation; nor do the education guidelines specify personal finance concepts within the social studies/economics standards.
Champlain does give Rhode Island extra credit because its Council on Elementary and Secondary Education approved a recommendation from a student group in 2014 that they endorse (but not require) the Council on Economic Education’s standards for personal financial literacy. This group of students, in the course of doing research for the recommendation, found that 84% of Rhode Island’s school districts had personal finance as a graduation requirement.
While personal finance is included in Rhode Island’s K-12 benchmarks, those standards are not required to be implemented by districts. The state does not require students to take, or schools to offer a high school financial education course; and does not have a standard competency test for personal finance.
National Standards for Financial Education
Financial Literacy Standards for Older Youth & Adults (High School through Adults)
Although there is no direct mandate by the California State Board of Education, it is recommended that national standards be implemented. Financial education is a unique subject; all participants have developed financial habits and relationships with money before instruction begins.
National standards are those that have been proven in empirical and theoretical research to produce the highest improvements in participant test scores.
Financial Literacy Standards for Kids (Kids PK through 8th Grade)
In collaboration with education leader Heidi Jacobs, the NFEC created these financial literacy standards to define learning goals and educational targets for optimal child financial education. Guided by strong pedagogical theory, the standards ensure that instructional targets are age- and developmentally-appropriate and that lessons can be effectively scaffolded. Standards represent five sections based on topic areas in the NFEC curriculum.
Standards for Financial Education Instructors
The NFEC teamed with the well-known Danielson Group to develop the first and only national standards for financial educators – The Framework for Teaching Personal Finance – to define optimal educator skill sets and performance levels. The framework also identifies the financial educator responsibilities empirically proven to produce highest gains in participant test scores. This framework is used in all 50 states, including California.