Efforts to improve financial literacy education in Illinois gain traction

Erica Wax, chair of CARE Chicago, stands inside a classroom teaching high school students. — Erica Wax, chair of CARE Chicago, teaches a “Get Smart About Credit” seminar at Gwendolyn Brooks College Prep in Roseland.

When Erica Wax teaches financial literacy to high school students, often “The questions just fly ... about credit cards, about paying back student loans,” she said.

Wax, a former bankruptcy lawyer and business litigator for more than 30 years, is chairwoman of Credit Abuse Resistance Education Chicago, or CARE Chicago. The not-for-profit group that’s a local chapter of a national organization offers financial literacy instruction to Chicago area high school students. Last year, it taught about 4,000 kids.

“Students have a million questions because they’ve had just enough experience to know what they don’t know,” Wax said.

In recent years, Illinois has become one of an increasing number of states that have added financial literacy to their core curriculum. The Illinois State Board of Education includes the subject in its social science standards, and a bill was introduced last year in the General Assembly that would require students to take a financial literacy course.

However, a 2023 national report card on state efforts to improve financial literacy gave Illinois a “B” and projected the state to remain at that grade in 2028. That’s in part because financial education can be delivered as part of other courses such as math or civics instead of as a stand-alone class.

The report from the Center for Financial Literacy at Champlain College in Burlington, Vermont, showed only seven states received an “A,” though 23 were projected to receive an “A” by 2028.

Wax said the level of financial literacy among Chicago area high school students can vary significantly from district to district or school to school.

“Based on the questions I get in the classroom, I’d say anecdotally that many high school students have debit cards, and many of them know the difference between a debit card and a credit card. But they don’t always understand the nuances,” such as how a credit card offers protection against fraudulent charges while a debit card may not, she said.

Similarly, college-bound students might not understand the difference between a scholarship or a loan and often don’t realize they can negotiate financial aid packages.

In Chicago Public Schools, financial literacy in high school is delivered through a curriculum called “Empowered” that outlines a nine-week teaching plan meeting the district’s graduation requirement. The coursework covers seven required subjects: economic concepts, money management, banking, credit, insurance, investing and consumer protection.

More than 300 high school teachers are trained to teach the financial education units, and the district supports the professional development of more than 50 new teachers each year.

But as with other districts throughout the state, there’s flexibility in how the instruction is delivered. One school might offer a stand-alone financial literacy course, another might include the material in a senior course focused on post-secondary education and planning, and a third might include the instruction in a math course.

For elementary students, the district is piloting mini financial education lessons with external partners such as the Chicago Mercantile Exchange. The curriculum is expected to fully roll out next year.

Vince Shorb, CEO of the National Financial Educators Council, said the efforts represent progress but aren’t enough.

“Public schools are failing our students” when it comes to financial literacy, he said.

The reasons can be complex, but he points to outdated approaches to core subjects that have not changed significantly in the last century.

“It’s a completely different world today,” he said. “I think there need to be more stand-alone classes focusing on near-term life events for when students graduate — like moving into their own apartment, or buying a car, or even how to interview for a job.”

But even a full semester of instruction might not be enough, he said: “Could you speak a foreign language after one semester?”

The organization will roll out a campaign in Illinois this spring designed to offer quality programming and resources, promote advocacy of financial education and build local relationships with school districts, community groups and other organizations.

Shorb said the campaign, first introduced in California, will address gaps in testing and assessments and support teachers who may not have had training.

“We need to make it more fun and interesting,” he said.

Wax, of CARE Chicago, agreed and said she is encouraged by student interest in personal finance topics but sometimes has to steer the discussion back to the core curriculum.

“I always get at least one student who wants to talk about stocks,” Wax said.

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