Banking know-how is one of the most important steps towards financial stability, but it’s an area that often doesn’t receive enough attention in schools. Some school districts are taking steps to change this, which could improve student outcomes in the long run.
We’ve added a fresh twist here. Richardson ISD is partnering with Texas Credit Union to open a student-staffed bank at Berkner High School and STEM Academy that will be open to the public, RISD officials said.
Texas Credit Union refers to these high school banks as “SMART branchAlthough Richardson’s is the first program in Dallas County, it is not a new program. He has two others in Allen and Little Elm.
According to the Federal Deposit Insurance Corporation, 5.6% of Texas households were unbanked in 2021, down from 7.7% in 2019 and 9.5% in 2017. With educational partnerships like this, that number could be even lower.
The need for better financial education isn’t just in areas south of I-30 in Dallas County. According to , approximately 56% of RISD students are considered economically disadvantaged. tea.
It doesn’t help that students graduate from high school and jump into a world of high costs and difficult financial decisions.Consumer price index for all urban consumers It rose 0.6% last month after rising 0.2% in July., according to the federal Bureau of Labor Statistics. And Texas itself has an affordability crisis to worry about.
Doing all of this without a bank account encourages people to manage their money in less secure ways, such as paying payday lenders or cashing checks at pawn shops. It leaves some people in our communities more vulnerable to exploitation and economic ruin.
Learning about finance through banking in school can help prevent such outcomes. And it will teach students in a hands-on, hands-on way, and may even help parents and other family members who don’t have bank accounts. RISD officials said students working at the branch will be trained by bank managers to provide key services such as opening accounts and cashing checks. Combining physical location with workplace education and classroom learning can improve engagement and retention.
According to a presentation to the school board, SMART branches have a “pay for performance” program that provides financial rewards for every A and B on their report card for some students who are members of the credit union. .
Encouraging students to open a bank account and get good grades may sound strange, but it’s a way to encourage students to take charge of their own money early on.
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