FOX 5 Money: Financial Education

Updated: Thursday, 12 Nov 2009, 6:19 PM EST
Published : Thursday, 12 Nov 2009, 6:19 PM EST
http://www.MyFoxDC.com
By MELANIE ALNWICK/myfoxdc, melanie.alnwick@foxtv.com

SILVER SPRING, Md. - On a rainy Tuesday morning, Kevin Murley's classroom is hopping.

"What are you bringing me? What are you bringing me?" he calls out as students approach his desk. They're carrying mock products they made of paper-- bracelets, purses, toys and electronic gadgets.

"The competition's tough my man, the competition is tough," Munley tells one student who is trying to sell a fan.

These kids are part of Montgomery Blair High School's Entrepreneurship and Business Academy. About 350 students have chosen this track.

In Murley's Entrepreneurship class, they learn about buying, selling, planning and budget -- the basics of running a business. They're also learning a strong financial foundation.

"It will keep people from incorrectly spending money, it will also help people not go into debt," says student Ty Bethel.

"It's better to invest your money for later use because it will help you in the long run," says teammate Sean Reilly.

This is not the only financial education Blair students are exposed to. They also run their own Maryland Teachers' Association Credit Union.

"It's a real bank, actually, we handle money and checks and things like that," explains junior Marta Martinez.

Attending Murley's class this morning is Maryland Comptroller Peter Franchot. Franchot is pushing to get classes like these in every Maryland school, and to make financial literacy a graduation requirement.

"A lot of your peer students, they're basically clueless about finances," Franchot tells the class. "And I think the concept is, we want to give everybody a chance to get serious."

After America's financial freefall, a bill has been circulating in Congress to provide $250 million to expand financial education from kindergarten through college.

The American Association of Family and Consumer Sciences, what used to be called "home ec", is working to develop the program that will certify financial education teachers. Executive Director Carolyn Jackson says it's something parents often intend to teach their kids, but gets lost in the chaos of family life.

"If it's taught in the school we're more confident that it will be done, and done well," says Jackson.

AAFCS says already three states-- Utah, Missouri and Tennessee--require at least a one-semester course devoted to personal finance for graduation. Eighteen other states incorporate finance into other instructional material. The rest, like Maryland, are working to catch up.

Montgomery Blair High School could serve as a model for the state. Murley is also teaching kids about planning for the unexpected. After the student teams have created their budgets, he approaches with a deck of "Life Happens" cards.

Students choose one cautiously. Some wince at the words

"Did you spend at least $20 on food last week? If not, you have to take one child to the clinic. Pay $20 for medicine and food now," reads one student.

Fortunately for this team, they planned wisely, and didn't have to pay the penalty.

What they do in this classroom may look like a game. But if all goes well in this one, everyone wins in the end.