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Here's a quick checklist for your junior or senior high school student who's rushing out the door on his or her way to school in the morning:
* BOOKS
* NOTEBOOK
* PENCIL/PENS
* IPOD
* CELL PHONE
* LUNCH MONEY
* CHECKBOOK
Whoa! Checkbook? Not so fast. According to a 2006 national study of high school seniors, only 16 percent have taken a course in money management or personal finance.
But several banking institutions have implemented programs in an effort to curb that alarming statistic and to better prepare young adults and adolescents as they go about their everyday lives learning how to become financially stable and responsible.
Two years ago, Denali Alaskan Federal Credit Union opened a mobile credit union branch at Wendler Middle School, the first at the middle school-level in Anchorage. Through a school/ business partnership, Wendler and Denali Alaskan have worked together to give students a hands-on opportunity to practice good savings habits.
"We want to give the students a chance to develop a lifelong habit of saving. The earlier teens start, the easier it will be for them to continue as they grow," said Erika Williams, Denali's marketing officer and coordinator for the school branch program.
Along with the visiting mobile branch, a Teen Power finance club was created to get teens excited about the idea and to incorporate student involvement with the branch.
Earlier this year, at Chugiak High School, a credit union was developed with the help of school business partner Matanuska Valley Federal Credit Union. It's called the Mustang Money Co-Op. Accounting class students help run the banking operation.
BY THE NUMBERS
There are several other stark statistics that illuminate the need for more financial education to prepare our youth to enter financial independence. The average amount of student loan debt rose from $12,393 in 2001 to $14,379 in 2006. Forty-five percent of college students are in credit card debt, the average credit card debt being more than $3,000. The number of 18 to 24 year olds declaring bankruptcy has increased 96 percent in 10 years. In 2002, more people filed for bankruptcy than graduated from college. Students now graduating from college leave with a diploma and an average of $19,000 in debt. And finally, the average student receives less than two hours of financial literacy training and education before they graduate.
Wells Fargo Bank has set up a school-banking program at Anchorage's East High School. More than 350 students and staff members have opened Wells Fargo accounts at the Bank Within East.
"Bank Within East," is literally a bank within the walls at the school," says David Kennedy, Alaska Communications Manager for Wells Fargo. "The tellers are students, and other students and faculty can make withdrawals, deposits and receive account information."
Anchorage's Russian Jack store team members train teachers and students and oversee operations of the "branch." East High School teacher Trudy Keller heads up the program for East. Bank Within East has been teaching students, faculty and bankers valuable life lessons since 1998.
ADDING UP
Mountain View Elementary School school-business partnership joins forces with Wells Fargo's CheckPoint Alaska African-American team member resource group. Members of that group have an active partnership with Mountain View, where they conduct Hands On Banking presentations, help coordinate, judge and provide savings bond prizes for the school's Black History Month essay contest, and help deliver holiday food donations to Mountain View families.
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"Students no longer have to keep their savings in a jar on their nightstand by their beds," said Williams. "They can have the confidence that their money is secure and earning interest, and that they are learning valuable tools for their futures."
As a general rule, most banking institutions require that students under the age of 18 must have a parent/ guardian sign up for any banking service account. That account then becomes a joint account. The parent/ guardian becomes the owner of joint accounts, while the youth is the primary member.
Banking transactions at schools may only be conducted during regular school hours.
Dana Rogers, assistant vice president and marketing consultant for Wells Fargo, says their Teen Checking account is designed to fit the teenagers' money management needs and helps keep track of spending. This account is available to customers ages 13 to 17 with an adult co-owner, for a monthly service fee of only $3 or free when you choose to receive your statements online.
"We also want to make banking fun," Rogers says. "We have also employed some of the students who have been through our banking programs."
"The focus of our student-banking programs is to help parents help students with money matters," says Wells Fargo Vice President and Marketing Manager Elaine Junge. "This was the first such program in the nation, but has since been a model in other states.
"Money questions at school aren't just about buying lunch anymore. Some of these banking programs can be time-intensive."
There are safeguards in place in each program. As a policy or rule, most banking institutions require a minimum of $5 be kept in an account at all times for it to remain active and generally there is a $5 fee to open new accounts with parents as co-owners.
The old three Rs of school learning: readin', riting' and 'rithmetic will never be replaced, but you may want to make room for the three new Cs of education ...credit, cash and checking.
BY BEN GRENN
ASSOCIATE EDITOR
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