Richard Shipin, who teaches a financial literacy class at the Delta Academy, said it’s critical to instruct students about what’s ahead in life.
Financial literacy, he says, is learning how to become financially capable and financially independent. That could mean calculating their taxes—a primary lesson in the month of April—or handling their student loans and understanding how they may affect one’s credit score.
“It’s important because it comes quick,” Shipin said. “Especially for the students who want to move out, want to join the military—whatever they want to do. The bills pile up very fast.”
Students at the academy—a public charter school serving grades 6-12 in North Las Vegas—aren’t necessarily coming from a lot of wealth in a neighborhood where the median household income is around $33,000 a year, said Kyle Konold, superintendent of Delta Academy, which opened nearly 20 years ago and hosts about 150 students.
Therefore, Konold said, it’s crucial that students know how to save for the unexpected expenses—like their air conditioning going out, for example—and the expected expenses, like retirement.
“I think that’s important for all young people to know, to start now,” he said. “It’s never too early.”
The class takes financial literacy “one step at a time,” Shipin said, starting with what jobs a student may have in the future.
The most impactful lesson for students, he emphasized, is budgeting, “without a doubt.” During that time, he teaches them the importance of a three- to six-month emergency fund, how to pay rent and their other bills, and so on.
“Everyone is shocked every year when we look up rents,” he said.
Real-life application classes like financial literacy tend to keep students more engaged, Shipin said, because they know they’ll need what they learn in that classroom someday—whether in paying their taxes, moving out of their parents’ house or other instances.
“It’s kind of funny because I teach math,” he said. “And they’ll say, ‘This is way more interesting and useful than your math class.’”
The class allows students to visualize what they want out of life, and then restructure those thoughts in terms of what they can afford. It ultimately gives them a realistic view of what to expect as they leave high school, Konold said.
“In order to get things started, you have to start somewhere,” he said. “And you don’t want to keep your money under your mattress. So let’s talk about a savings account that’s interest-bearing, as opposed to a checking account that gets you nothing.”
In April, which is National Financial Capability Month, the students learned how to calculate their annual taxes, about the marginal tax rate and more, Shipin said.
“My students have told me, ‘No one has talked like this to us,’” he said. “So I think that’s a big reason why the class is important—just the fact that, without that class, very likely, they wouldn’t be having these conversations. And anyone can agree these are important conversations.”
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