Teenagers have great buying power, but many lack knowledge about managing money effectively. Teens spend approximately $158 billion a year. In 2002, 61% of the teen population in the United States is expected to make online purchases. Yet, surveys show that most high school seniors are ill-informed about credit, saving and budgeting, and other important life skills involving personal finance.

The Purpose of the High School Financial Planning Program

Teaching teens the fundamentals of sound money management is the purpose of the High School Financial Planning Program (HSFPP), implemented in Illinois in 1986. Sponsored by University of Illinois Extension and the National Endowment for Financial Education (NEFE), the program teaches teens more than the basics and instills a sense of confidence in money matters.

U of I Extension educators train teachers to use the program materials developed by NEFE in the classroom. The 10-hour program is taught in a high-school course (such as family and consumer economics, business, or economics) or it can be taught through home schooling or other organized groups. It is a public-service program, offered free to private and public schools.

High school students learn about designing a financial plan, managing income and credit, saving to achieve financial goals, and protecting assets. After completing the program, many students establish a regular savings plan, open a checking account to track their spending and develop a budget to meet financial goals such as college. The most important aspect of the program is that it teaches teens how to manage financially on their own after high school. In 1998, research by Laurie Boyce and Sharon Danes showed that 86% of the students completing the course work demonstrated an increase in financial knowledge or a positive change in behavior when dealing with money.

Participation rates in Illinois continue to be among the fastest growing in the country. Between September 1, 2000 and August 31, 2001, 21,027 students in 169 Illinois schools participated in the program. Teachers are enthusiastic about this educational tool. In a recent survey, 82% of Illinois teachers were very satisfied with the curriculum.

"The program provides some excellent resources for teachers, particularly in a time when it's hard to find finances for materials. These resources are free, unbiased and ready to use." Gary Coates, Princeton High School

"The information is written at a level the students can understand and is easy for them to use. The student workbooks are great!" Kelly Fletcher, Tiskilwa High School

University of Illinois Extension has an extensive list of videos and publications to lend to teachers using the HSFPP program. Videos, available through the U of I Extension educators, include topics on career exploration, family financial management around the world and setting up household budgets. Publication topics range from auto insurance to home equity loans to money management and shopping skills. 

Also, U of I Extension staff write and distribute a biannual newsletter to teachers using the program. Each newsletter contains subject-matter content, teaching ideas and a review of resources. 

If you're an Illinois school teacher and would like more information about using the High School Financial Planning Program, contact Katherine Reuter, Extension Educator, at reuterk@mail.aces.uiuc.edu.

 

Revised and updated as of 07/01/02

E-mail: CFEwebsite.uiuc.edu

Consumer and Family Economics
Department of Agricultural and Consumer Economics
University of Illinois Extension
University of Illinois Urbana-Champaign