News

• Ohio Treasurer of State Richard Cordary to Participate in the Third National Summit on Economic and Financial Literacy
• NCEE Reponds to Economics Achievement Data on Nation's Report Card - August 2007
• Teachers Academies Launched - June 2007
• Midwest Regional High School Economics Challenge - May 2007
• Ohio High School Economics Challenge - April 2007
• Cordray gets moving on financial education for Ohio students - January 2007
• Ashland University Gill Center and EconomicsAmerica Cleveland Join Forces - January 2007
• Excerpts from the testimony of Chairman Ben S. Bernanke - May 2006

August 9, 2007, NY - Yesterday the National Assessment Governing Board released the achievement results for U.S. 12th-grade students on the 2006 National Assessment of Educational Progress. The Nation's Report Card: Economics 2006, the first-ever NAEP test in economics, was administered to 11,500 students in 590 public and nonpublic schools.  The report includes data on economics course-taking and provides examples of what students do and do not know about national and international economic concepts and personal finance topics.

The Assessment shows that 79% of students have an understanding of at least the basics of economics, but only 42% performed at a proficiency level, and only 3% had a grasp of advanced economics.  The average score of male students was higher then the average score of females, and White and Asian/Pacific Islander students scored higher, on average, than other racial groups.

According to Robert Duvall, President and CEO of the NCEE, "The assessment provides good news and challenging news.  It is encouraging that a large percentage of students have a basic understanding of economics, however, less than half of the students performed at the proficient level.  There's more work to be done!  The economic well-being of our nation and our capacity to be competitive in the global economy depend on effective economic and personal finance education.  This report gives us a picture of where we are succeeding and where we need more attention." 

"Economics has become mainstream and the NCEE's issue is clearly a national issue. No longer is the question 'Should we take action on improving economic education?' but 'How shall we do it'," said Duvall.

According to the NCEE, economic education must be taught state-by-state, because that is where curriculum decisions are made. The federal government must encourage states to place economic and personal finance education not only into state standards, but into the core curriculum. Once in the core curriculum, these subjects must be required, taught, taught well, taken and tested.

The relationship between economic literacy and economic stability has reached the headlines.  And according to a 2006 NCEE survey, states are not making sufficient progress in offering and requiring economic and finance education in the schools. Consequently, the majority of students are not receiving the essential real-life economic skills they need to become knowledgeable consumers, prudent savers and investors, and productive members of the workforce.

"In this context, it is our responsibility to ensure that the solution begins in our schools, because economic and financial literacy is not intuitive. It is learned," said Duvall. "I am encouraged that the Assessment was done for economics.  Now we have important data to measure our progress in the coming years.  Our goal is that 100 percent of our students would have a basic understanding, and that at least half the students would be advanced," stated Duvall.

The NCEE ( www.ncee.net ) is a non-profit, non-partisan organization dedicated to improving economic, financial, and entrepreneurship literacy. Both directly and through its unique nationwide network of State Councils and more than 200 university-based Centers for Economic Education, NCEE's programs reach over 150,000 K-12 teachers and more than 15 million students each year.

Teachers Academies Launched to Prepare for 2010 Financial Education Requirement

Financial Education Program Filled to Capacity by Educators Eager to Learn

Columbus, Ohio – School might be out for the summer, but dozens of Ohio teachers will be back in the classroom this month to learn how to teach financial education.

State Treasurer Richard Cordray said that 285 teachers are signed up for the inaugural Teachers Academy workshops.

Demand for the program is high, with nearly 200 additional teachers on a waiting list, Cordray added.

The statewide training initiative was developed by Ohio Treasurer Richard Cordray, the Ohio Department of Education and the Ohio Council on Economic Education in answer to Ohio ’s Core Curriculum Bill (S.B. No. 311), which passed late last year. The bill requires that school districts offer personal finance education as part of their high school curricula beginning in 2010.

“Teachers attending these workshops will be shaping the consumers of tomorrow,” Cordray said. “Students will become more financially savvy and be able to make decisions that will lead to financial stability for them personally, and for our economy generally,” he added.

A nationwide survey sponsored by the Jump$tart Coalition for Personal Financial Literacy last year found that high school seniors are failing when it comes to financial literacy. Only 52.4 percent of questions about personal finance and economics were answered by students correctly, which underscores the need for more financial education, Cordray said.

The two-day Teachers Academy program will be offered at seven statewide locations:

Youngstown State University June 13 - 14

University of Akron June 18 - 19

Bowling Green State University June 18 - 19

University of Cincinnati June 20 - 21

Wright State University June 25 - 26

Ashland University June 27 - 28

Ohio State University June 27 - 28

For a detailed schedule of events, Teachers Academy curriculum details, and additional information, visit www.ohiotreasurer.gov and click on Teachers Academy .

18 teams met in Chicago on April 23rd from Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Ohio, Tennessee, and Wisconsin for what has been described as the hardest regional test in several years.

We're pleased to report that our Ohio teams did quite well - our Strongsville High School team tied for second place after the first three rounds, but the tie-breaker went to the other team, so Strongsville was unable to advance to the fourth and final round. Nevertheless, their high placement does credit to their school and the state of Ohio! Gahanna-Lincoln High School took fifth place, but did especially well at the international economics portion of the competition, traditionally one of the tougher parts of the Economics Challenge tests. Well done!

Carmel High School, from Carmel, Indiana took first place in the Adam Smith division, and Anamosa High School, from Anamosa, Iowa took first place in the David Ricardo division. Ohio extends congratulations to all the teams participating in the 2007 Midwest regionals!

Adam Smith Champion Team - Strongsville HS

David Ricardo Champion Team - North Ridgeville HS

For the third year in a row, the winning team in the Adam Smith division was from Strongsville High School. In David Ricard division North Ridgeville High School was the winning team. Both teams will go on to represent Ohio at the Midwest Regional Economics Challenge on line, in April, where the teams will compete for an all expenses paid trip to New York City, and a chance to win the National Economics Challenge.

We would like to express our thanks to the Chamber Foundation, Mansfied/Richland County representative Bill Sharp for serving as our Master of Ceremonies for the final rounds of the competition, to all our volunteers.

Many thanks as well to the National Federation of Independent Business - Ohio for sponsoring our t-shirts, and especially to our fellow Board Members, Center Directors and staff, and friends, without whom this event would not be possible.

The 2008 Ohio Economics Challenge was sponsored by the Ohio Council on Economic Education, and the National Federation of Independent Business-Ohio; the National Council on Economic Education, the Goldman Sachs Foundation; and the Ohio Council for the Social Studies.

Ohio Treasurer Richard Cordray

Representative Joyce Beatty

Senator Kirk Schuring

Cordray gets moving on financial education for Ohio students

(Columbus)—Ohio Treasurer-elect Richard Cordray today applauded legislators' decision to include financial literacy education as part of a new core curriculum for students.

Senate Bill 311 incorporates financial literacy and economics as part of the required social studies credits for high school students.

"Including financial education as part of the social studies and civics curriculum demonstrates that the state's lawmakers understand that sound personal financial stewardship is a fundamental part of citizenship for the 21st Century," Cordray said.

Cordray, who holds a graduate degree in economics, noted that consumer debt—apart from student loans—is the leading reason most students drop out of college. Additionally, Ohio 's rate of home foreclosures leads the nation.

While serving as Franklin County Treasurer, Cordray formed a financial education task force. Among other initiatives, they pushed for legislation similar to that included in SB 311.

"We have witnessed the devastating affects that financial missteps have had on individuals, the futures of their families, the viability of entire communities, and the overall stability of our state's economy. I see financial education at every stage of life, but particularly for our young people, as a vital first step for putting our state on a strong financial footing.

"That's why, for the past three years, we have been working with Representative Joyce Beatty and Senator Kirk Shuring to further financial literacy education in Ohio," Cordray said.

Professor Creola Johnson of the Ohio State University Moritz School of Law, who worked with the community task force, observed that the mission to offer more personal finance education defined Cordray's work as county treasurer. "He has spoken from every pulpit, written every letter, partnered with every educational enterprise, and harangued every legislator about the importance of giving people the tools they need to effectively deal with an increasingly complex financial world. I can imagine how pleased he must be with the passage of this landmark legislation."

Cordray said he will work with the Department of Education to implement the new measure. One program he plans to offer this summer is modeled on a teacher training academy similar to a program in the West Virginia Treasurer's office.

"This is what we have sought all along -- an understanding that we cannot fashion good young citizens if they cannot manage their own affairs and stay out of bankruptcy, foreclosure, and other financial trouble. At the State Treasury, we will continue to lead this effort to ensure that Ohioans are put in better position to have the tools to make better decisions."

Ashland University Gill Center and EconomicsAmerica Cleveland Join Forces

Two of the oldest economic education centers in Ohio have become one. The Ashland University Gill Center Program for Business and Economic Education and EconomicsAmerica, Cleveland Center have joined forces to promote economic education to students in public and private schools in a 15-county region of northern Ohio .

The new EconomicsAmerica, Cleveland Center, operating as part of the Gill Center, will now provide economic education to an area that includes 34,000 educators and 485,000 students in kindergarten through 12th grade. The enlarged region is now the largest geographic region and largest region in terms of students serviced among economic education centers in Ohio. Economic education programs will be delivered throughout the service area including instruction from Ashland University’s main campus as well as Ashland’s Cleveland Center in Warrensville Heights.

Established in 1968, the Gill Center Program has served students in Ashland, Crawford, Erie, Holmes, Huron, Lorain, Marion, Medina, Richland, Wayne and Wyandot counties. It is a major part of the entrepreneurial efforts of Ashland University. The tenets of private enterprise, freedom of enterprise, freedom of individual choice and freedom to gain from one's efforts are advanced. The Gill Center specifically promotes increased knowledge of the private enterprise system in its various education, public, business and government constituencies.

EconomicsAmerica, Cleveland Center was founded in 1973 by the Harvard Business School Club of Northeastern Ohio and the Ohio Council on Economic Education as The Cleveland Center for Economic Education. The mission is to improve an understanding of economic principles and the global economy. Working through school systems, EconomicsAmerica strives to teach students in grades K-12 to apply economic principles in making reasoned choices as future workers, entrepreneurs, voters and consumers. EconomicsAmerica, Cleveland Center has been based on the campus of John Carroll University in University Heights and has historically served students in Cuyahoga, Lake, Geauga and Ashtabula counties. The Center will continue to partner with John Carroll University on economic education programs.

Employees dedicated to economic education in the new 15 county area are Paula Aveni, Director; Linda Spencer, Program Director; and Phyllis Cooper, administrative assistant. The Center will be known as “EconomicsAmerica, Cleveland Center of Ashland University.”

Paula Aveni said the EconomicsAmerica staff is very pleased with the merger. “Excited and honored are words that come quickly to mind,” notes Aveni. “Ashland University and the Gill Center have a long history of commitment to economic education and professional development. This merger will allow us to serve teachers and students in northeast Ohio with even more resources than we’ve traditionally offered. It helps ensure students will have the skills and tool they need to make reasoned, rational decisions about very important life issues. The stronger we are, the better off they’ll be.”

John Dowdell, director of outreach for the Gill Center, said, “We’re excited about the opportunities that this merger provides for Ashland University. We believe this merger will allow us to provide quality instruction in economic education to an even larger audience in northern Ohio.”

John Sikula, associate provost and dean of the Graduate School at AU, said the merger will allow the University to make better day use of its Cleveland Center in Warrensville Heights. “This will help us to have more day usage of our Cleveland Center,” Sikula said. “Now, it is primarily used in the evenings by our graduate education and seminary classes. This will allow us to further maximize the use of our resources.”

Program and resource information will soon be included as a link on the Gill Center’s website: http://www.ashland.edu/gill. Center staff can be reached by calling 216.831.7788 or 1.800.882.1538, ext. 5685.

Federal Reserve Chairman Ben Bernanke

Excerpts from the testimony of Chairman Ben S. Bernanke before the Committee on Banking, Housing, and Urban Affairs of the United States Senate

May 23, 2006

"Chairman Shelby, Senator Sarbanes, and members of the Committee: I am pleased to be here to discuss financial literacy and financial education. My remarks will emphasize the importance of financial literacy, both as a source of better decision-making by consumers and as a means of improving the functioning of financial markets. I will also highlight various Federal Reserve System initiatives to promote financial education and address some of the opportunities and challenges that policymakers and financial educators face as they seek to improve financial literacy.

"Technological advances have dramatically transformed the provision of financial services in our economy. ...we have seen an increasingly wide array of products being offered to consumers across a range of incomes, leading to what has been called the democratization of credit. Likewise, innovation has enhanced financial services, such as banking services, and increased the variety of financial products available to investors.

"Clearly, to choose wisely from the variety of products and providers available, consumers must have the financial knowledge to navigate today’s increasingly complex financial services marketplace. Consumers with the necessary skills to make informed financial decisions about purchasing a home, financing an education or their retirement, or starting a business will almost certainly be economically better off than those lacking those vital skills.

"Informed financial decision-making is also vital for the healthy functioning of financial markets. Like any other businesses, financial service firms will provide better products at better prices when they are subject to market pressures imposed on them by informed consumers. Regulators have an important role in helping to ensure that financial service companies provide necessary information to their customers, but such information is of value only to the extent that it can be understood and applied by potential users of these services."

The Federal Reserve System’s Commitment to Financial Literacy
"The Federal Reserve System has long recognized the value of economic and financial education for producing better-informed citizens and consumers...

The Cleveland Federal Reserve Bank Learning Center and Money Museum

"The Learning Center and Money Museum (at the Federal Reserve Bank of Cleveland) was opened in January 2006. The Learning Center features over 30 interactive exhibits and related educational programs centered around the theme "What gives money value?" The educational programs were designed by the Bank, with teacher input, based on state educational benchmarks. Programs include lessons on saving and spending, inflation, barter, and the Federal Reserve System. The Learning Center hosted over 2,500 visitors in its first quarter of operations, and reservations for Learning Center educational programs are booking seven months in advance. All program participants "strongly agree" that their Learning Center visit provided a valuable learning experience. The center has been endorsed by the Ohio Council on Economic Education.

"The Bank also participates in the Fed Challenge and hosts a number of other programs for teachers and students throughout the year, including workshops and student competitions with various partners such as Ohio Jump$tart, the Ohio Council on Economic Education, Junior Achievement, and local public libraries."