At the Hub, we are dedicated to helping students in the region achieve economic prosperity through high-paying, in-demand careers in STEM fields and the skilled trades. But how will your student use their hard-earned paycheck and make it work for their family and their wallet in ways that will help create lasting security and build wealth? 

Stanford economist Annamaria Lusardi asserts “Developing personal finance skills is as important as learning how to read and write.” 

Many students report that math classes cause feelings of frustration and anxiety and they are uninterested in exploring math because they do not see how math will be relevant in their adult lives. This is where the topic of personal finance comes into play. 

Students learn by doing; teaching students how to manage personal finance and work towards financial independence is a great way to incorporate math through applied learning while also fostering skills that will better their lives and the lives of their families. It’s a win-win.

Personal finance will strengthen basic math skills through the consistent application of addition, subtraction, multiplication, and division, but also open the door for developing more complex math skills like algebra and word problems. 

Compound interest, for example, is a concept that can be calculated through the use of algebraic equations (A = P * (1 + r/n)^(nt)) and can be applied to lessons of capital gains from investing or figuring out strategies to paying off debt and understanding the importance of responsible credit card usage.

Percentages are another great example of using fundamental math skills in the applied math sphere of personal finances and financial literacy. Proficiency with percentages is useful for calculating dollar amounts for things like down payments on a home or the taxes withheld from a paycheck.

A million-dollar exercise: Ask your kid to find the median salary of their dream job and have them calculate the percentage they would need to set aside between 25 and retirement age, 67 to be a millionaire at retirement. This can also give them practice researching saving and investment methods to empower them to make an informed decision when it’s time to start saving. 

Personal finance is not only a gateway to pique students’ interest and understanding in math topics through real-world skills, but starting with the class of 2027 it will also be a high school graduation requirement for Oregon students. Providing students with classes on financial literacy demystifies finance concepts and equips them with the skills needed to make smart financial choices for themselves and their families.

A 2023 study by Lusardi reflects a shockingly limited understanding of financial literacy in Americans. Lusardi and the team collected responses from a three-question survey covering the topics of interest rates, inflation, and risk diversification. Results showed only 43% of Americans were able to answer all three questions accurately. When breaking it down by gender only an alarming 29% of women were able to answer the entire survey correctly. 

While basic personal finance classes won’t necessarily lead to students becoming part of the FIRE movement, for many—especially first-generation and low-income students—these courses may be the first time they are introduced to money management and financial literacy practices.

In conclusion:

Personal finance isn’t just about balancing a checkbook; it’s about setting one’s self up for lasting economic stability and prosperity. Having a firm understanding of personal finance is linked to individuals and families also having the ability to maintain healthy lifestyle conditions, improve quality of life, and end cycles of generational poverty. Incorporating applied math through the lens of personal finance and financial literacy will give students a real-world reason to become interested in math, a skill transferable to a wealth of career options. 

Personal Finance Experts: 

  • Her First 100K – This podcast is fun and lively and offers comprehensive guides to paying off debt, building wealth, and other financial topics. A great resource for the young women and gender minorities in your life
  • Journey to Launch – Working towards financial independence from square one!
  • Your Rich BFF – A podcast and YouTube creator that focuses on personal finance and career topics  A great resource for the young women and gender minorities in your life.
  • Rose Han – YouTube tutorials on investing and wealth building, and free resources to get students started. We recommend “Millionaire Explains: 6 Habits that ACTUALLY Made Me Rich.”
  • Caleb Hammer – Caleb hosts a YouTube-based podcast, Financial Audit, that shows viewers how to correct financial debacles using real-life examples.  (Advisory: suitable for high school and older students, episodes may contain profanity.) 

Financial Literacy Resources:

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