Financial Literacy in America: What Role Should Colleges, Universities, and Business Professionals Play?

• In Event: Teaching, Learning, and Curriculum 5

Abstract

In 2004 the AICPA launched its financial literacy initiative entitled 360 Degrees of Financial Literacy. The goal of this program is “to help Americans understand their personal finances through every stage of life”. This initiative came on the heels of a 2002 conference held by the National Endowment for Financial Education (NEFE) ® where it was concluded that “Americans’ failure to make knowledgeable decisions about their personal finances is having a dramatic national impact”. Not to be outdone, in 2004 Congress established the Financial Literacy and Education Commission (FLEC) with its mission to develop a “national strategy which would promote financial literacy and education”.
The purpose of this paper is twofold. First, we provide a broad overview of the major organizations and agencies, such as those noted above, that have attempted to create ways to address the financial illiteracy problem in the U.S. Second, we discuss the role that business educators could and should play in combating this problem. This includes a brief description of an elective course that we offer on financial literacy at our institution and we highlight the key reactions from students. The overarching goal of the course is to improve the financial fitness of our students.

Authors

• Frank C Lordi, Widener University

• Joseph M Hargadon, Widener University