Q&A WITH BILL SCHONACHER
Oklahoma’s financial future rests on students of today
Q: According to the National Financial Capability Study, 63 percent of American adults can’t pass a financial literacy test. The percentage has continued to increase since 2009. What role do banks play in mitigating America’s widespread financial literacy problem?
A: Many banks have made it their mission to ensure that the next generation is equipped with the knowledge needed to make smart financial decisions. IBC Bank is committed to doing more to help improve the lives of the citizens in the communities that we serve. By sharing our knowledge and experience in schools and community organizations, we have the ability to reach the individuals that may be most vulnerable to financial hardships.
Q: Many of the stories surrounding financial literacy education mention implementing curriculum in the classroom. Why the focus on the next generation?
A: At IBC, we are not solely focused on the next generation, but we do understand the financial future of our communities depends on our students. Understanding and applying basic financial principles at a young age sets young people on a path for success. IBC also partners with organizations to provide financial education classes to adults. These days, many adults find themselves in need of help with understanding basic banking principles, like opening accounts, building credit, combating high student loan debt and understanding the process to obtain a mortgage. Through these types of partnerships, IBC is able to provide adults with the tools and knowledge to assist them on their journey to financial stability and security.
Q: What principles are taught to students during financial literacy classes?
A: We teach a wide variety of topics to students on how to manage their money. As children get older, they will make important financial decisions that will impact their future. Grade school aged children learn the basic fundamentals of money; the names and values of each piece of currency and the differences between wants and needs to help assist them as they discover the importance and impact of their choices. Older children learn about investing and budgeting as they begin earning money from working odd jobs like baby-sitting, mowing lawns, etc. Since 2013, IBC-Oklahoma has taught 1,993 financial literacy and Junior Achievement classes, reaching 36,510 students.
Q: What steps can individuals take to secure their financial future?
A: Anyone interested in securing their financial future should attend and participate in as many financial education classes as possible. It is imperative to learn the basic financial principles as well as; tracking expenses, creating and implementing a budget, and saving and securing a retirement savings plan for the future. Knowledge is power; therefore everyone should grasp as much information as possible to ensure that they are prepared to handle anything that comes their way.
Q: You mentioned that many adults find themselves in need of help fixing their credit. How can individuals use their credit wisely?
A: Borrow only what you can afford to pay back. We teach students that credit cards are not like gift cards, and what you buy now will have to be paid for later — with interest. The same principle is taught to adults when we teach credit management classes. Paying your bills on time and making at least the minimum payment each month are ways to increase your credit score over time. This will eventually have an impact on your ability to apply for loans and future credit cards.