All right, class, Fiscal Literacy 101 is officially in session. Take out your textbooks, turn to page 164, and we will begin our discussion on the future of American entitlement programs.

Beyond a cursory introduction to programs like Social Security, Medicare, and Medicaid in U.S. History, how many of us can say we cemented a basic understanding of our country’s economic policy from our high school education?

On March 30st, 2011, leaders from around the country gathered for the Civic Innovators Forum on Civic Learning to discuss strategies to improve civic education. Former Secretary of Commerce, Peter G. Peterson, entered the conversation stressing the importance of economics and suggested that there should be a greater emphasis on fiscal literacy in education.

In this discussion, Peterson noted that current education standards for economics are insufficient to combat American fiscal challenges. “On our country’s current trajectory, our children will not do as well as their parents’ generation. Education is a critical component in setting a different course, and currently, there is no comprehensive high school curriculum on our nation’s fiscal challenges,” he said.

The call for greater attention in the area of early economics education comes from survey information representative of a larger phenomenon. In his remarks, Peterson highlighted a recent study of students’ knowledge pertaining to economics that showed “only 2 of the 6 simple and basic questions were answered correctly by a majority of the students.” Conversely, an overwhelming number of adults, about 97% of those surveyed, believe fiscal literacy should be an extension of the high school curriculum. The question to answer is: what accounts for the large disparity between our educational priorities and the results that actually come to fruition? Peterson noted “only about half the students have any economic course at all in high school and only 21 states require a course in economics for graduation.”

The fact remains that government projections indicate the United States currently owes over $13 trillion in debt. Tackling this problem requires a thorough examination of every facet of the federal budget. While lawmakers have been presented with a number of solutions aimed at addressing fiscal concerns, the variance in approaches represent distinct priorities in terms of taxes and government funding. The challenge for the next generation is balancing individual interests against the greater good. In this arena, compromise is of key importance.

Many leaders in both the public and private sectors herald the need for increased dialogue about the economy and fiscal responsibility amongst younger generations because the problems of today are not dissolving anytime soon. Expanded programs through the public education system are only one of many options being considered to reach young citizens. Beyond advocating for increased awareness in the schools, how do we make economic concerns engaging to American youth?

Steps are currently being taken to design an economic curriculum that promotes civic engagement in schools across the country. At the Civic Innovators Forum, Peterson mentioned that the Teachers College at Colombia University has designed a national economics curriculum aimed at secondary schools. This pilot program will seek to implement reform in 45 schools across the country in January 2012. Anand Marri, Assistant Professor of Social Studies and Education at Teachers College discussed the program saying, “The larger goal of this is that we want to use algebra, economics, so forth for civic engagement. We want our students to be active citizens. But at the same time, we want them not just to be active citizens, but knowledgeable citizens.”

Currently, 44 of 50 states do not even mention topics such as the federal budget, national debt and budget deficit in their economics curriculum. Only six of the top sixteen most popular collegiate and high school textbooks discuss these topics at length. Marri believes it is time for teachers to shift focus from teaching economics as a natural law and instead use economic principles to teach students about choices, investment, and savings. The “Understanding Fiscal Responsibility” program will eventually be distributed to over 100,000 schools across the country.

Peterson discussed progress on the fiscal curriculum project saying that there are currently, “nine lessons on national debt and deficit, eleven on budgeting and entitlement programs, three on reform and balancing the budget and two on demographic shifts and challenges associated with the aging America.” He also mentioned that the first of 24 fiscal curriculum projects had already been released as of April 8th, 2011 and is being piloted in schools across the country in locations such as Texas, Wyoming and Duluth, MN. Overall there will be 60 lessons by the end of the project, as well as an online component that will expand on the individual lessons. Peterson claims that these lessons will be “easily integrated into existing curriculum in a variety of subjects.” Following the official release, the National Center for Restructuring, Education, Schools and Teaching (NCREST) will evaluate the curriculum to judge its effectiveness in encouraging youth to become more active citizens.

There is no question that the future of American growth and prosperity rests in the hands of our youth. Yet, the need to increase our awareness of the issues facing our government is a shared responsibility. Fiscal literacy is just one component of a well-rounded civic education. Take a minute to reflect on your knowledge of the policy debates of today. Where do you need a refresher course?