Financial Literacy Now: New York

Financial Literacy: Commentary from Harold McGraw III
Chairman, President & CEO, The McGraw-Hill Companies

We have learned many lessons from the current economic crisis. But none is more important than this: financial literacy is critical to our economic well being, and, unfortunately, we are not making the grade.

Every American’s ability to provide for our families, achieve financial security and contribute to the growth of the broader economy is dependent on our ability to understand how money works. But according to the Jump$tart Coalition, high school students scored only 48.3% in a recent financial literacy test. And while college students scored better, 62.2%, there still is room for significant improvement. That’s why we need to redouble our efforts to educate Americans of all ages about mortgage terms and conditions, as well as such concepts as the impact of compound interest rates on credit card debt, diversification in investing, and the value of saving, just to name a few.

At The McGraw-Hill Companies, our mission is to provide essential information and insight that help individuals, markets and societies perform to their potential. That’s why we are excited to partner with several nonprofit organizations on a new campaign, Financial Literacy Now: New York, designed to better prepare all New Yorkers to make informed decisions about their finances.

This initiative will focus on three priorities:

• Raising awareness of the importance of financial literacy so we can effect real change in people’s knowledge and behaviors.
• Providing greater access to the training, services and information people need to develop these essential skills.
• Enhancing professional development opportunities for teachers so they are equipped to teach financial literacy to students of all ages.

Ours is a local initiative, but clearly this is a national issue. That’s why we need public and private support for regional and national programs designed to increase financial literacy for all Americans. This includes supporting educational standards that incorporate basic economics in curricula beginning in the earliest grades. If we put the same emphasis on our children’s financial literacy that we do on their ability to read and write, we will go a long way toward helping them realize their dreams, enjoy higher standards of living and achieve a secure financial future for generations to come.