result of the near collapse of the financial system and credit markets seizing up. he is taking his message to cities in illinois and iowa hardest hit by the financial crisis. live pictures now from the senate subcommittee hearing. what happens here could affect the future of the entire financial industry and that includes your bank, and your retirement savings and your 401(k) and even your mortgage. i asked the cnn money team to explain why this hearing should matter to you. i m stephanie e larm in new york. you may not think goldman sachs has anything to do with you, but what happens on wall street impacts main street. so if you need proof just take a look at the housing crisis. three years ago most people had never heard of subprime mortgagees, but last year there were a record number of foreclosures affecting people with good credit, too. so we ve got to learn from the past. if goldman sachs had brought down the mortgage market, we need to figure out how so we can make
And the state average with the help of teachers like connie moran. good morning. reporter: named teacher of the year by the national foundation for teaching entrepreneurship in 2007. ever since i ve listened to her in class i heard her say invest in your money. invest your money, now i m going to listen to her. reporter: christine romans, cnn. great story. if you re not lucky enough to have a school like ariel in your neighborhood, how do you make sure your kids learn these money lessons? lynette cox is the author of the millionaires kids club. glad you re here. great to be here. i think the main question is, just how critical do you think especially now for kids to learn about how to manage their money? i think it s enormously critical. if you look at the past two years and what we ve experienced as adults in this country, a lot of that was linked to a lack of financial lis reece and i always tell people simply put, financially illiterate children grow up to be fi
That, and i m like, wow. you know what? this is fun. reporter: fun and finance don t often appear in the same sentence. but that s not true at ariel. from age-appropriate learning to an inspirational environment and the ultimate reward. attending mcdonald s annual shareholder meeting, making this all possible is john rogers, chairman and founder of ariel investments after which the school is naped. named. ariel along with a partner put up thes 20ds,000 for each grade. s in 1991 ariel started work wig this public school on the south side of chicago, because it was one of the most underserved in the city. 98% of the student body is african-american. 78% are considered low income. nowadays, test scores are on the rise. outperforming the distribute and the state average with the help of teachers like connie moran. good morning. reporter: named teacher of the year by the national foundation for teaching
Entrepreneurship in 2007. ever since i lived to ms. moran in class i heard her say invest in your money. investing your money and now i m going to listen to her. these kids are awesome. students can opt to get their profit in cash on graduation day, ali or put it in a 529 college savings plan. in which case ariel kicks in an additional $1,000 reward. that in itself is a lesson. don t take the cash, think about the future. put it in a 529. there s so many options with that 529. totally. invest in somebody else s. invest in yours, get a tax deduction. the majority of the kids do they take the money or 529 investment? they do the investment. great. kids have learned as they ve gone through that money s going to grow. starting to learn about compound interest. the more time the better it will be for them. it you re not lucky enough to have ariel in your neighborhood, how do you make sure your kids learn all mees these money
good morning, everyone. you know financial literacy is critical. how did you first learn thousand manage money? through your parents, through your teachers, or through trial and costly errors? well, in a recent survey by the national foundation for credit counseling, only 6% of people polled say they learned about personal finance in school. just 6%. and that, some say, is the problem with financial literacy in this country. cnn s christine romans found one school on chicago s south side that is trying to change that. reporter: meet america s future investment bankers and accountants. we have to look out for the dividends. i like checking the dow. my favorite stock is apple. reporter: at the academy, students learn to you to make money save money i think everybody should at least save half of their money. reporter: and invest money. real money. thanks to the school s unique saving and investment curriculum. the incoming class gets an endowment. when they g