Why is a Bank At School Program Necessary?

Financial education is a critical issue for today’s children. Across the country, studies show that students lack even basic financial knowledge. A recent survey by the JumpStart Coalition, a national group dedicated to improving financial literacy, found that high school graduates know less about money than their 
peers did five years ago – and that wasn’t much to begin with! Most high school graduates lack basic skills in the management of personal finances, according to the Coalition studies; this includes a “lack of insight into the basic principles involved with earning, spending, saving and investing.” Nationally, teens spend a whopping $122 billion annually yet they lack the know-how to spend that money wisely. 

Most families do not talk about money issues. When children are asked if their parents talk to them about family finances, most reply, “SURE!” However, the conversation is most often along the lines of “I’m not giving you money.” Or, 
“We don’t have any.” Or, “Wait until payday.” Or, “Do you think I’m made of money?” While learning to earn, save, and spend money is a critical life skill, 
actual financial education rarely takes place in the home. 

In today’s busy school day, teachers often lack time and materials as well as
the background to teach financial skills. Today, most banking is done by direct deposit or telephone or online banking. Many money transactions are made 
with plastic- credit or debit cards. Because of these factors, children seldom 
visit banks or see people actually saving money. Little is done to nurture the 
ethic of savings in children. 

One way children develop the ethic of saving is to open savings accounts. This 
is a guaranteed way to gain financial security while establishing the ability to 
make later purchases without going into debt. The Delaware Bank At School program addresses these issues by providing real banking experiences to the children involved. Teachers and parents work together to encourage the 
children to save regularly. In addition, the Delaware Bank At School lessons 
are provided so teachers can introduce relevant and timely money and banking concepts…not just to meet state standards but more importantly, to meet the financial literacy needs of the students. 


What is the Delaware Bank At School Program?

The Delaware Bank At School program is designed to teach students about financial management, using hands-on, functional learning while also providing
real life experiences in banking and saving. Classroom lessons are provided to teachers; these lessons, correlated with the Delaware State Standards in Economics, highlight ways to save and the advantages of savings. 

Schools are matched with banks in their communities. Each school signs a contract agreeing to notify parents of the program, provide guidance to students to open accounts, and create a space and schedule the weekly Delaware Bank 
At School program. At least two teachers and an administrator in each building 
are asked to serve as liaisons with the Bank At School partners. Representatives from the partner bank come to the school on the same day each week to accept student deposits. Students may visit any of the bank’s regular branches to make additional deposits and withdrawals. Students have the opportunity to set up non-custodial, no-fee savings accounts; these accounts are opened in the students’ names and are free of charges until students reach the age of 18. The Delaware Bank At School program also provides a critical school and community link. 


What Do We Want Students to Know About Banking?

Students should learn:

     · That by saving early and often they can accumulate assets.
     · How to fill in a deposit ticket and to complete paperwork to open an 
       account.
     · Banks are a safe place to save your money.
     · Accounts are protected up to $100,000 through the FDIC 
       (Federal Deposit Insurance Company).
     · Banks are businesses that offer services such as checking accounts, 
       safe deposit boxes, savings accounts, financial advice, money orders…
     · Banks need to make a profit to cover their operating expenses including    
       workers’ pay, paper goods, security, utilities, maintenance of buildings and  
       grounds…
     · Banks use the money savers deposit to lend to people who need loans.
     · Savers earn something extra for leaving their money in the bank. This is 
       called interest.
     · People who borrow money must pay back what they borrow plus something 
       extra for using the bank’s money. This something extra is called interest. 
     · Banking can be done at a bank, an ATM machine, by using the telephone, 
       mail, or computers.
     · Tellers and bank officers will help you with banking questions and problems. 
     · It is important to shop around for the bank that best offers the services 
       you need. 
     · Banks impact the local community through jobs, banking services, loans, 
       and volunteer efforts.

WHAT TO DO IF YOU WANT A BANK AT SCHOOL

Contact: Dr. Bonnie Meszaros at 302.831.1896 or meszarob@lerner.udel.edu
Ronni Cohen at 302.792.1200 or ronnicohen@delawaremoneyschool.com

Then, once you have spoken to one of them, use the checklist below to get started. (Microsoft Excel File)

If you do not have Microsoft Excel, please feel free to download the .pdf version of the checklist here.