Hamilton County students learn personal finance tips | Local News

According to the National Financial Educators Council, financial illiteracy costs the average American over $1,800 per year, with much of that in credit card interest and fees..

With that in mind, Hamilton County has launched a new financial literacy course, and every student must pass it in order to graduate. It could be among the most important lessons your child will get in school.

Many high school students say they’re often drilled on geometry and literature, while they learn very little about taxes, debt, and investing. Brandon Lowry is trying to change that. He teaches personal finance at Chattanooga School for Arts and Sciences. He says the class may be the most important class some students will take in high school.

Tennessee is one of 35 states that have made financial literacy a priority. That’s up from only 7 states 10 years ago. Not that long ago, most students had never been offered financial education at a school, college or workplace. CSAS 11th graders say the timing of the class is perfect. Jordan French says the class “is right on time, because we’re about to become young adults.” Lucie Gentry enjoys being part of dinner table conversations about family finances.

The class includes taxes, insurance, loans, credit cards, and savings. Some of these students may never need to solve complex calculus problems, but they will probably need to buy a car, and pay for a place to live. And they’ll think twice before making an impulse purchase. 

Gentry said, “Now I think about things before I buy them.  Could I find it somewhere also at a cheaper price, or a higher quality?”

Financial advisor Chris Hopkins is among a group of professionals who helped introduce the Next Gen Personal Finance class to Hamilton County students. As a result, students will graduate much better prepared to make sound financial decisions and avoid the debt and spending traps that have entangled so many young adults. Hopkins, like many of us, had to learn these lessons the hard way. “I think we can all say, we wish we had this class when we were in school,” Hopkins said.

Here are four of the top financial necessities many students need to know before they graduate..

Invest early. The earlier you start, the faster your earnings will accumulate.

Make sure you pay off your credit cards in full, each month, to avoid paying interest, and late fees.

Make savings a priority. Most college-age students are not saving enough. They say it just doesn’t seem important, but when the unexpected happens, they realize, it is.

And live within a budget. Many say they just haven’t gotten around to creating one, but it can make a huge difference.

In addition to Tennessee, Georgia and Alabama will require the updated class in all high schools starting this fall. And North Carolina ranks first in the nation in high school financial literacy.