Education in economics and personal finance provides a strong workforce giving Virginia a competitive advantage.

Virginia’s Standards of Learning contain elements of economics and personal finance in public elementary, middle, and high school, including a requirement that in order to graduate, students must complete a full credit (full-year) course in economics and personal finance.  The class of 2015 will be the first class to graduate with all students passing this course.  Virginia is a national leader with these standards.  With quality teaching in these subjects, Virginia will have a competitive advantage with a workforce that is economically and financially literate.

One might find it surprising that most Americans do not realize the importance of economic and financial education.

A Newsweek survey in 2011 found that 65% of Americans did not know that the type of economic system we have in this country is a market-based or free-market system.  In 2010, more Americans filed for bankruptcy than graduated from college.  Studies have shown that 56% of Americans do not have a budget, and 39% of adults do not have any type of retirement savings.  The amount of student loan debt in this country has reached $1.1 trillion and now exceeds the amount of credit card debt, with delinquency rates four times as great at around 14%.  Are you surprised?

All students need knowledge in economics and financial skills in order to effectively function in today’s dynamic economy, and they need to learn these essential life skills early.  By the time they are juniors in high school, students are facing decisions that will impact the rest of their lives.  Should they go to college, learn a trade, join the military, or enter the workforce?  If they go to college, should they attend a two-year or four-year institution, public or private, in-state or out-of-state?  And, how will they finance their education?  All of these options need to be considered along with their earnings potential in order for students to make prudent, informed decisions.  An education in economics and personal finance will help them work through these important life decisions.

In Virginia, we recognize that economic education and financial literacy are not only important for an individual’s success, but also critical to workforce development and sustaining a robust economy.  The Governor’s Workforce Development Initiative seeks to better align workforce supply with employer demands and includes education as a significant component.  In addition, the Virginia Chamber of Commerce’s Business Plan for the Commonwealth, called Blueprint Virginia, cites the importance of Workforce Development and Education, including a reference to the need to “promote financial education so all students obtain basic economic and financial skills, and support initiatives for teacher training in this area.”  As Virginia competes with other states for business, an educated workforce, well-versed in economics and personal finance, is a strong competitive advantage.

Virginia’s businesses and economy benefit from having a financially and economically literate population.  Knowledge of economics enables employees to understand how businesses compete in our global economy and their own role in helping their employer succeed.  They understand how markets work and the need to invest in their own “human capital” in order to be employed in today’s labor market.  Financially literate individuals are able to use credit, make financial decisions, manage their finances, and plan for their goals and future in a more responsible manner.  They are better informed consumers.  Educating Virginia’s students in economics and personal finance helps to make all of this a reality.

And, it is important for every student to learn these essential life skills, regardless of his or her personal circumstances or future vocation.  A solid understanding of economics and personal finance will help all students succeed.

How can you help?  Encourage students to master these subjects.  Support our teachers, school administrators, and the Department of Education as they strive to educate our students in these areas.  Speak with your elected officials, and let them know how important it is that we keep this education in the K-12 public school curriculum.  Support education in economics and personal finance, and help our students and the Commonwealth of Virginia thrive and prosper.

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The Honorable Maurice A. Jones, Maurice.Jones@governor.virginia.gov , Virginia Secretary of Commerce and Trade; Daniel R. Mortensen, Executive Director, Virginia Council on Economic Education drmortensen@vcu.edu