April is Financial Literacy Month, which is designed to raise awareness on planning for a secure financial future. Through our 5E pathway approach, Next Generation Scholars 12th grade students are focused on taking actions to achieve these goals, such as completing applications for financial aid and scholarships and creating their personalized high school transition plan, which often includes the question “How am I going to afford to live?”
The importance of this topic remains at the forefront in our ever-changing world as students prepare to enter the real world amid a global landscape filled with financial challenges. According to 2019 report by AIG, 53% of students feel the least prepared to manage their money. And only 51% of this year’s NGS seniors felt prepared to tackle the college financial aid process at the start of the school year.
Because of this, coordinators spend their second engagement with these students focused on building their confidence when it comes to making educational choices about their financial futures. Coordinators, with the help of local volunteers, teach students about credit and loans as related to their specific future goals.
Melissa Palmer, with Truist, visited 12th grade classrooms earlier this year to support this effort. “I have enjoyed my partnership with MBRT to educate students about financial literacy,” she said. “It has allowed me to live my personal and professional purpose in life through involvement with students.”
“At Truist, our purpose is to inspire and build better lives and communities, and our partnership is built upon those principles. I believe all young people should have every opportunity to be successful in life and if I had to pick what I enjoy most, it’s the energy and engagement from the students!”
Focusing on building scholars’ financial education does not stop with this mid-year engagement. Coordinators are tirelessly assisting students with one-on-one help in submitting applications and supplemental documentation for college aid. Other volunteers such as Christine Hudson and Chris Honeman from Shore United Bank, are scheduled to meet with Financial Consumer classes at Cambridge-South Dorchester High School to expand on credit scores, loans, and repayments, among other topics.
Students have found these sessions helpful as they deepen their understanding of financial literacy. The conversations have made them take the time to consider the implications that taking out a loan might have on their futures. They learned that while money for loans is easily accessible, it has to be paid back with interest. The myth that all debt is bad was also debunked – demonstrating that paying back interest can help with establishing credit, while honing in on the importance of being selective about the debt accrued.
One of the biggest takeaways for students is their realization that while managing their finances as an adult might seem difficult and confusing, there are resources that can make it easier. First, understanding the differences between loans versus scholarships and grants – specifically the Howard P. Rawlings Guaranteed Access Grant. Next Generation Scholars may be eligible to be awarded this grant that can be used at any Maryland college or university. Secondly, understanding that college is an investment, but with the variety of financial aid options, it can be doable.
If you are interested in supporting our efforts to increase financial literacy for our 12th grade students, please reach out to morgan@mbrt.org.
