by John Lewis, Head of School
Each year we conduct a survey of graduating seniors to gather their feedback about their Gunston experience. One of the questions we ask is: “Are there things that you feel Gunston has not prepared you for?” Nearly every year, several students reply: “Gunston didn’t teach me how to do my taxes.” When I plug this phrase into my Head of School translator, here is what it spits out: “Mr. Lewis, I feel financially illiterate.”
Since 2017, the TIAA Institute has measured a Personal Finance (P-Fin) Index — a barometer of financial literacy of adults in the United States. Unsurprisingly, financial illiteracy is rampant. On their 28-question survey across eight functional areas, adults scored approximately 50%, a number that has remained consistent. Younger Americans scored the lowest among demographic groups in seven of eight categories, with comprehending financial risk as the highest category of illiteracy.
The good news is that financial literacy skills can be taught and learned. The bad news is that according to Forbes magazine, only 30% of high school students nationwide (and only 27% in Maryland) currently receive formal financial literacy instruction. To remedy this at Gunston, and as part of our decennial accreditation process, we recently set a goal to research high-impact financial literacy programs, with the aim of implementing a program into the 2024-2025 academic year.
Last Spring, with a group of Seniors, we piloted the research-tested Cowin Financial Literacy program developed by Teachers College, Columbia University’s Cowin Financial Literacy Institute. Feedback from last year’s program was very positive, and students found it very useful. The program uses a series of eight case studies to teach essential financial concepts such as savings, investing, budgeting, college savings, financial planning, credit, risk, consumption, and diversification. In addition to the case studies, the program includes supplemental readings, videotaped lectures, and expert responses to the cases. We also added a special session: Mrs. Jayne, who is a tax expert, reviewed basic tax forms like the 1040, W-2, and W-4, etc. This year, we will add a session on Charity and Philanthropy with Mrs. Lawson.
As the chart below illustrates, high levels of financial literacy can have long-term impacts:
Why financial literacy? As a school, Gunston maintains a strong and comprehensive program to support mental, emotional, and physical wellbeing. Yet as “wellbeing” best practices have evolved, the issue of financial literacy has gained prominence. In short, studies show that financial literacy supports financial wellbeing, which subsequently supports mental, emotional, and physical wellbeing. Every member of the Senior Class will be invited via email to voluntarily participate in the financial literacy program, which will be delivered during GEx periods in the second semester. The cases will be taught by a diverse array of faculty and leadership team members, each of whom will teach a single case. We estimate that each case will take approximately two GEx periods to complete. In addition to studying the cases, students will take a brief pre- and post-assessment to determine their progress. No longer will Seniors be able to claim that Gunston didn’t teach them how to do their taxes!