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Women’s Wednesday: Financial Literacy · Women's Wednesday with Susan Tran

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Hi, everyone. Welcome to Women's Wednesday. I'm
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Susan Tran here on DC News Now. And today we
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are talking about financial literacy for children.
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And joining us today is Ariel Levinson-Waldman
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Thank you so much for being here. Thanks for
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having me. Really, really excited about the conversation.
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And this is such a fascinating conversation because
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it's all about making sure that kids know about
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their personal finances and not just savings
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but spending and all of these intricacies and
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that I feel like I never got as a child and you're
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the founder of Tzedek DC. Just a quick understanding,
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what do you all do there at Tzedek DC? Yeah, thank
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you. So Tzedek DC is this great word from the Bible
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means justice. So our mission at Tzedek DC is
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to increase access to the DC justice and the
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DC financial systems. And we do three things
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in support of that mission. We do direct services,
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so that's pre -legal help, as well as financial
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counseling. We have a terrific set of financial
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counselors, some extraordinary women especially,
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who lead our work in that space. Second thing
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we do is community outreach and education in
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English, Spanish, Amharic, and other major languages
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spoken in the district. And so, for example,
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we've had a financial empowerment program for
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younger adults. for now going on four years.
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Really designed to get folks the tools they need
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for that next phase of how do I begin to build
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intergenerational wealth? How do I protect myself
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and my family from scams and frauds? How do I
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think about starting down the investment pathway?
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What strategies do I have to build or rebuild
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my credit? Things along those lines. And then
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the third area, and this is really where these
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two areas intersect in a pretty exciting way.
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just here today in DC, is systems change. Sometimes
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we know that the rules aren't set up right or
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haven't been as fair or as well -resourced as
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they should be. And so we're right on the verge.
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Literally tonight, by the time this broadcast
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comes on, there will have been a vote by our
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DC State Board of Education on giving every kid
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in our DC public schools a right to of financial
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tools, financial literacy class, as opposed to
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kind of an ad hoc thing that happens sometimes.
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And we're catching up to the rest of the country
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on this issue in DC. It's really exciting. It's
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really important. It's work that's been going
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on now for the last five years as a coalition,
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both nonprofits and the government and our business
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community have come together and said, this is
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something that we really need for that next generation
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to have. the tools they need to move forward.
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And let's talk about the idea of financial literacy
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for kids. There was a study from a financial
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banking firm that talked about just one single
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high school course will equate to $100 ,000 in
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a student's lifetime. That is just wild to know
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that if you just take this one course, you're
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making a difference of six figures. Yeah, it's
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it's it is wild. And it's really important for
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us to know and for our policymakers to be thinking
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about, which fortunately, thanks to all the work
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that's been done by our mayor's D .C. Office
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of State Superintendent of Education, by our
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D .C. State Board of Education, our policymakers
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have now really reflected that insight. But we
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don't have to start on a blank slate here in
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the district. We have thirty seven states that
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have made financial literacy part of their curriculum.
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And that has given. you know, a lab from all
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across the country for these studies to say,
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well, what's the impact? And when you see those
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studies and you see the impact, including right
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here, you know, just across the border in Prince
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George's County, where you see that impact being
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as high as 100 or as you said, $125 ,000 of lifetime
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earning increase for a child, it ought to be
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a no brainer that we make sure to get kids access.
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to that information, to that tool, to that framework
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of thinking about their future and their family's
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financial future earlier. We have seen in our
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work in the community, we've gotten so much feedback
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from adults, sometimes young adults, sometimes
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adults well into adulthood who have said, now
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that I've gotten access to financial tools and
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how to protect myself and how to begin savings
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and investments and thinking about my paycheck
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and taxes and planning and all that, I feel...
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So well equipped, but I wish I had this information
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two five seven ten years earlier before my credit
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report was tanked Before I was the victim of
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a scam or a fraud Why is it so important that
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you're hitting it at the high school level? It's
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so important because immediately after high school
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whether it's somebody's first job full -time
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or college or trade school or uh thinking about
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it for you know a few years down the road every
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single high school student basically within a
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just a few years is going to have to start making
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those first financial decisions and steps and
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choices and this sets folks up to be able to
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make those choices in an informed way for example
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at a recent hearing at the state board of education
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a number of current high school students said
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i have to make a really tough decision right
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now about whether to go to college and which
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college maybe to go to. And I have to take out
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these big student loans if I want to do it. And
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I don't feel that anyone is giving me information
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to make this decision about my future. And it's
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a really important decision. My government's
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failing me right now, and I wish the next generation
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would get better. And they urge the state board
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to make this change, that their younger siblings,
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their friends who are a few years behind the
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next generation, would have access to those tools
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and that information. Because they're at the
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precipice of having paychecks, needing loans.
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There are credit cards, savings, life management.
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And that credit report, which reflects the credit
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cards, reflects the loans, reflects payments
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on mortgages, and increasingly, as it should,
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it now has started to reflect payments on time
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for rent. That credit report is so important.
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That's something that Doesn't get talked about
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enough and now it will be talked about more once
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this is in the schools And we talk about it all
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the time that credit report is the ticket to
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economic citizenship. You want to start a business?
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That credit report is key. You want to take out
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a loan? You want to get approval for rental housing
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you certainly if you want to become a homeowner
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and get a mortgage and It's so important in our
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credit score credit score one out of every three
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jobs in the DC region Requires a background check
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that entails a credit credit report assessment
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and so we've had people come through our program
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who couldn't get a job because their credit had
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been impaired. Okay, we're gonna hold that thought.
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We're gonna be right back. You're watching Women's
7:21
Wednesday. Welcome back to Women's Wednesday.
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I'm Susan Tran and joining me now is Arielle
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Levinson -Waldman. Thank you so much for being
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here and we're talking about financial literacy
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for kids and it being voted on as a possible
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requirement for DC public schools. Just talk
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about why it is so important that kids have this
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type of education. I know I didn't. I got one
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little class in grade school about balancing
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a checkbook and, you know, that's not as helpful
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these days. But why would it be so important
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for our kids in the D .C. school system to have
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personal finance knowledge? Yeah. Well, it's
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something that I feel really strongly about personally.
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But let me put that aside for a second. We have
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heard directly from kid after kid after kid,
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these are current high school students or young
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adults in our DC community who've told us why
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it's so important to them. And what they have
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said time and time again is, these are tools
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I need to make decisions that are important in
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my life. For example, whether to take out that
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credit card, whether to take the student loan,
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how to build up credit in order to get approval
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for housing. or get approval for a job, which
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often entails in our region, review of a credit
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report, how to avoid scams and frauds, what to
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do about the massive amounts of information coming
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at our whole community, but especially our young
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people through AI and social media, how to navigate
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all this information, sometimes misinformation,
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and sometimes pathways towards harmful avenues
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like 100 % percentage rate loan. that people
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will sometimes get misled into and that has,
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you know, years -long negative effects. So we've
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heard over and over that this is something that
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our young people need and want. And we know from
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looking around the country that in the states,
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37 states that have adopted this as part of their
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curriculum, there have been big, quantifiable
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positive changes in the financial futures of
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those high school students. And so... It's a
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big credit to the DC State Board of Education
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and everybody involved in the effort that this
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is now coming after five years of effort coming
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to fruition for a vote tonight to make this an
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official policy change going forward in our schools.
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But who benefits from this? What is the excitement
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about? Yeah, every kid will benefit from this.
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But in particular, young people who may have
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not had somebody around the dinner table with
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with financial experience, um are really going
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to benefit. We have seen particular passion on
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this issue from our young women. The majority
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of witnesses who came to the state board hearing
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were current young women in high school or young
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DC adult women who said this is something that's
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so important and it's something that was missing
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when I was in high school. or when I was early
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in my college or trade school or job years and
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now that I'm learning about it or have learned
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about it I really am glad I have these tools
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but I sure wish I got them earlier and I sure
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wish my younger siblings got them earlier because
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I've seen what happens this is what they say
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when I'm the victim of a scam or a fraud when
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I hadn't fully understood the credit report game
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and I see that my credit report has been harmed
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by Some choices or some cards that I signed up
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for because this isn't just about Savings, right?
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It's not just about how to make payments or budgets
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It's it's much more advanced that that we didn't
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I did not learn in school It's it's really about
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setting up, you know, you're a person's life
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in future. How do you Get to that place. We all
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need resources This is, you know, financial literacy
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is great, but without resources and tools, it's
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never gonna help someone. So it's not just the
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information, but it's coming up with how to get
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access to those tools and resources to begin
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saving, to begin, as we do through Artetic DC
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program, to open up pathways to investment programs
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for young people so that there's a real chance
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of moving towards having a retirement account
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that can grow out of an investment account. And
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when... Young person starts that account in their
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late teen years or 20 in their 20 something years
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The difference is massive in terms of the lifetime
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positive impact versus we have so we know so
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many people right who started thinking about
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retirement in their 40 50 60s or even 70s and
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I've seen real stress and struggle as a result
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when young people know their path and the strategies
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and the tools and can start to take those steps
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towards building wealth in especially towards
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building intergenerational wealth, something
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we hear so much talked about in terms of the
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desire to be able to do for myself and do for
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my kids. To have access for funds in the 529,
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for example, that's something that we teach about.
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Because then what is also something that... you're
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referring to is the kids will benefit. They're
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going to grow up and pass down all of this knowledge.
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So trickling down to multigenerational and communities
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that will benefit a hundred percent and multigenerational
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and also just within a family. When you have
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an individual or multiple individuals who have
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really gotten the tools to be able to get it,
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give themselves good advice, but then also give
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their sister, cousin, mom, aunt, friend, neighbor.
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And then you really start to see the the multiplier
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effect of these choices. And that's one of the
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many reasons why we think this is a really good
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choice by our government to bring this to every
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kid coming through the school. That's 50 ,000
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kids at least. That is just really alarming that
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it can make such a big impact initially for the
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one child to kind of put them on the right path
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to benefit in the six figure digits over a lifetime
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but then outwardly like a spider web for multiple
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generations. That's exciting. All right, you're
13:53
watching Women's Wednesday. We'll be right back.
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Welcome back to Women's Wednesday. I'm Susan
14:00
Tran. We're talking about financial literacy
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courses being required for DC students. Hopefully
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that's the vote that's coming up and we're joined
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by Arielle Levinson -Waldman. Thank you so much
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for taking the time. You were sharing that there's
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a story that really kind of encapsulates the
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importance of why you're so passionate about
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making this a graduation requirement for DC students.
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One of the things that we've really seen over
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the last five years of work at Tzedek DC on this
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issue in and around DC is that our young people
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really care and get why this issue matters to
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them, to their futures, to their families, and
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to the family members that haven't even been
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born to them yet. We had, for example, a number
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of incredible young women come and testify at
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the D .C. State Board of Education hearing. And
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one of them was a woman of just extraordinary
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energy. She was in her senior year at the basis
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school. Her name is Dylan Roach. And she got
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so passionate about this issue because it wasn't
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taught in her schools and it wasn't available
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for her. Most of her friends in terms of what
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the parents had access to. And she actually spent
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multiple months interviewing hundreds of people
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in and around DC to find out who was getting
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financial literacy information, and if they were
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getting it, how they were getting it, and realizing
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that this was not something that was available
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to most kids in our DC schools. And she became
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so passionate on the topic that she did an entire
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presentation at the DC Public Library. She testified
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to the state board. She's now won a scholarship.
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from this work and has just started college at
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Spelman down in Atlanta, and we hope to bring
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her back as a leader on this issue. But she's
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just one of a number of really striking examples
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of how our young people have said, our financial
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information and access and tools are really important
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to us. Our government hasn't been providing what
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we need. We're telling the policymakers what
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we need. The policymakers, to their great credit,
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are listening. are voting tonight to make change
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as a result of Dylan and others like Dylan, who
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have come from the community and said, there
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are states, including right next door in Maryland
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and Virginia, that are providing their kids with
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this information. We need it. We're entitled
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to it. Our future deserves it. And the district
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is now making this really positive change What
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does a requirement for graduation in financial
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literacy look like for DC kids? It's gonna be
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a half credit financial literacy class taken
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at any time during high school Paired with a
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half credit in career prep this though. I the
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idea is not to be theoretical. This is super
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practical stuff How do I begin to make sure I
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have what I need to spend? it's not just a budget
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at the spending plan on life and In terms of
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like, this is the kind of job I would want if
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I want to live this lifestyle? This is the kind
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of job that I would want to get prepared for,
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but also this is what I would understand about
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my paycheck, about my taxes, about beginning
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to save for my future, about the importance of
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paying myself first. We talk about that in our
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classes all the time. The mantra of make sure
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to pay yourself first so that... What does that
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mean? That means... in our classes, what we talk
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about is make a commitment that when you're employed
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or if you're already employed now, you will invest
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at least $10 a month in your account so that
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it grows, it grows over time. And eventually
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if it's an investment account can become your
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future retirement account. And you can do that
17:43
at any level of income. And if you have higher
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income, much more we hope than $10 a month, but
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to make that commitment to yourself. And so these
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are things that are easy to not focus on as a
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young person. And we've had so many people in
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their 20s, 30s, and 40s say, I wish I had this
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information so I did focus on it earlier in life,
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as early as 18, 19, 20, 21, 22. And what other
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kind of key points would be in the course? So
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we're looking at everything from what is a budget
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to a spending plan to how do I think about savings
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to making sure people get sort of how taxes work
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at the practical level, to how do I avoid scams
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and frauds? How do I think about student loans,
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the cost benefit, and there are both costs and
18:36
benefits to student loans. What do I need to
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do if I want in my future to be an entrepreneur
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and start a business? What if I want to become
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a future homeowner? So we make sure that people
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have access to that basic information. They don't
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need to know it all by the age of 18. but to
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at least have the core basics of what does it
18:56
mean to have a paycheck? What does it mean to
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have a checking account? What does it mean to
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begin saving? What does it mean to move in the
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direction of investing in yourself so that you
19:07
and your future family have that passively growing
19:13
wealth? I think I was well into my 20s until
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somebody pulled me aside and said, Susan, are
19:21
you putting money in your 401K. And I looked
19:24
at the person and was like, I'm sorry. And I
19:26
remember Nancy, my producer, and she's like,
19:29
if you don't, you're leaving money on the table.
19:31
And I had to have her explain it to me. So I'm
19:34
assuming that's something that you guys would
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be covering. That's the kind of thing that I
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didn't hear, certainly, when I was in high school.
19:42
And we know that so many young people, even when
19:45
they start making real salaries. just figure
19:48
well I could just spend every cent that I get
19:49
because I'm getting it and I want to live a fun
19:51
life and this gives them the tools to make a
19:55
fully informed decision. We're not making decisions
19:57
for anyone or in the schools are not either but
20:00
we want to make sure that people have that full
20:02
range of information so that when that first
20:05
job kicks in after college or trade school or
20:08
maybe even right after high school that people
20:11
can be thinking right away about how do I pay
20:13
myself. Yeah, all right, so bottom line 30 seconds
20:18
What would you say would be key about making
20:20
sure kids learn about these tools? So the the
20:27
the big step forward here is that there's gonna
20:29
be a class that every kid has a right and actually
20:32
an obligation to complete before high school
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and that means that they every kid Leaving our
20:38
DCPS system is gonna have thought about savings
20:42
and their future paychecks and how to avoid the
20:46
many, many scams and frauds coming at them and
20:50
why they may not want to sign up for every credit
20:53
card opportunity that comes their way. And there
20:55
will be many that come their way and what it
20:57
means to look for a better rate, a lower rate
21:00
of credit card and a higher rate of savings.
21:02
All right. You're watching Women's Wednesday.
21:04
Have a good one.