Discover Financial puts $10 million toward teens’ financial savvy

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Updated: March 9, 2012 8:16AM

Public high school students will get help in becoming financially savvy thanks to a $10 million, five-year personal finance education program being unveiled Wednesday by Riverwoods-based Discover Financial Services.

Discover’s Pathway to Financial Success program seeks to reach 500,000 students. It will provide grants to high schools to cover the cost of implementing a standards-based financial education course and training teachers on the curriculum.

The program seeks to combat the high rate of financial illiteracy among Americans. In a National Bureau of Economic Research study, high school students scored a failing grade in financial literacy, and adults scored a C grade.

A recent poll by the National Endowment for Financial Education revealed 84 percent of high school student respondents said they need more education on financial management topics. But only 12 states, including Illinois, require students to complete a personal finance course before graduation.

“Financial education is the key to providing an opportunity for people to achieve a brighter financial future,” said David Nelms, chairman and chief executive officer of Discover. “We hope to play a role in drawing attention to the lack of financial education at home and in our schools and helping define the solution by bringing financial education to the classroom where it can have a lasting impact.”

Getting financial education curriculum into schools is a goal of President Barack Obama’s Council for Financial Capability. Discover consulted with the council while developing the program.

“This is a great example of the private sector working together with the non-profit and public sectors to enable more Americans to improve their financial literacy and well-being,” John Rogers, chairman of the council and chairman and chief executive officer of Chicago-based Ariel Investments, said of the Discover program.

Schools can apply for the grants at Pathwaytofinancialsuccess.org. The site also features resources to help parents talk with their children about money matters, including videos, games and other tools.