Atlanta Federal Reserve hosts national high school literacy competition

ATLANTA, Ga. (Atlanta News First) — A few years can mean hundreds of thousands of dollars in investment returns, and high schoolers from across the country gathered in Midtown to prove they understand that principle.

Students competed in the National Personal Finance Challenge at the Federal Reserve, testing their knowledge of retirement planning, investment strategies, and financial literacy.

Arhan Barve, valedictorian at Lambert High School in Suwanee, said personal finance can be complicated for young people to understand.

“I think every high schooler should learn personal finance,” Barve said.

The Lambert High School economics team competed against students from across the country. Their first mission was to act as a financial advisor to a fictional woman and pitch their recommendations to a board of finance professionals.

“Her name is Sarah. She’s 52 years old,” Barve explained.

The day was full of acronyms — 401k, REIT, Roth IRA, FICO — and lessons on how to properly set up life insurance policies.

These teens are an exception. According to Stanford University, fewer than half of Americans can pass a basic financial literacy test, and fewer than 40% of teens can.

But the numbers are trending up.

41 states require some kind of financial literacy program in high school. More than two-thirds require students to pass a financial literacy course.

Georgia requires at least half a credit for students beginning in 2024.

“I think it’s very limited,” Barve said. “It’s definitely moving in the right direction, but I think a lot of steps need to be taken to ensure it’s growing at an even faster rate.”

Only half the teams made it to the next round, and students waited anxiously for their school to be called.

Lambert did not make it. But there’s always next year, hopefully with at least 8% compound interest on AI investments.

“No one knows if (AI) is a bubble or if it’s going to pop,” Barve said.