Dollars and Sense

Tolbert Rowe brings his thoughts on financing and his common sense every month.

Mr. Rowe is Vice President/Lending for Bay Capital Mortgage Corp. with offices in Easton and Annapolis. He has lived in Caroline for his entire life and supports the county by volunteering in a variety of ways. He currently lives near Greensboro with his wife Jeanne

and daughter Kelsey.

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Dollars and Sense

The September issue of the Caroline Review included an article by Connie Connoly showcasing the Caroline County Public Schools Education Foundation Fund. The purpose of the fund is to support and enhance financial literacy and career exploration opportunities for Caroline County students.

Interesting that a recent article in the Money Section of the August 8, 2025 USA Today newspaper  titled  “Are you as financially literate as a high school student” highlighted how Scipps Ranch High School in San Diego beat a team from Mount Hebron High School in Ellicott City, Md. In the National Personal Finance Challenge.

So, what does it mean to be a “financially literate” consumer in today’s economy. Being financially literate means that an individual has the knowledge and skills to make informed financial decisions and understand the risks and rewards of those decisions.

Here are 10 questions from the final round of the 2025 National Personal Finance Challenge. Do your best and see if you are financially literate as a high school student.

1. What is the term given to the amount that is separate from any earnings or interest that has accrued?
2. What is the name of the digital credential that allows users to sign in to apps and websites without using a password?
3. Insurance companies evaluate risk for the purpose of issuing insurance coverage. This process is called what?
4. A system where people earn money by providing services or goods on demand, usually through digital platforms, is called what kind of economy?
5. What credit card transaction requires you to pay interest every day, including the first day of the transaction?
6. On your way to work, you get caught in a hailstorm that damages your car. What kind of car insurance covers the damage?
7. Steven contributes pretax dollars to an account managed by his employer for health care expenses. If he does not spend all the money by the end of the year, he will forfeit it. What kind of plan does he have?
8. Fred does not believe in banks and keeps his money in a sock buried in the back yard, under a new concrete patio. He faces little risk of the money being stolen, but his sock money is subject to what kind of risk?
9. You buy bonds from a corporation and notice that the company can buy the outstanding bonds from you before the maturity date. What is this feature called?
10. What is the name given to a stock that pays a higher-than-average dividend?

It is interesting that Scripps High School does not have a formal financial literacy program. California now requires financial literacy instruction as a graduation requirement for the class of 2027.

Howard County MD public schools do not require financial literacy instruction per se. They require that students complete an approved program of career preparation, of which there are several.

As the financial world is spinning out of control for many people and our financial futures seem to become less secure being a “financially literate consumer” is a priority.

As I write this, the Federal Government is shut down. Before this shutdown consider the following before the effects are the shutdown are even factored in.

About 5 million of 44.7 million student loan borrowers are currently 90 days past due on payments. Credit card delinquencies have climbed to 4.3 % of the $1.3 Trillion dollars of total credit card debt. Especially concerning with this number is that 2.8%   of this number are over 90 days delinquent.

Vehicle and mortgage payment delinquencies are beginning to increase, and it is likely to get worse. Foreclosures and repossessions will undoubtedly increase. The last quarter of 2025 will be very challenging to say the least.

Now, to see how you did on the test, click on the link to the right.