Update: For those looking for full course material, I’m posting it on a parallel site:
Yesterday, I had the great pleasure of officially kicking off a new course at Stanford University, “Personal Finance for Engineers“. The course is offered through the Computer Science department (CS 007), but is open to undergraduate & graduate students of any major.
It was a packed room, and I was delighted. In fact, I was delighted for three reasons.
First, I love teaching. In an unexpected coincidence, the room my course was assigned, 200-034, is the same room that I taught CS 198 for the CS 106 Section Leaders over 20 years ago as a graduate student. It was the home of CS 198 for many years. To see it filled with students again was wonderful.
Second, the level of student engagement has been outstanding. Originally set for a maximum of 50 students, I expanded the enrollment to 75, and with waitlist interest the total number of students easily went over 100. For a new course without a track record on campus, I was delighted to see so many students interested in the topic.
Third, the topic is incredibly important to me. Those of you who have been following my efforts around personal finance education know that I care deeply about the topic. Over the past 7 years, I’ve given talks at dozens of companies like Facebook, LinkedIn, Twitter & Dropbox, hoping to better educate and inspire employees to learn more about personal finance and make better financial decisions.
I’m hoping this class can amplify those efforts even further.
Making Personal Finance Education Open
I feel grateful to Stanford University and the Computer Science Department for supporting this effort, and I hope that by making the material public, we can help get higher quality education about personal finance to as many students as possible.
My hope is that by circulating this material, more people will engage to give feedback on the content, make suggestions for improvement and continue to improve the material and the class.
After every class, I’ll be posting the slides for the session up on Slideshare. The materials from the first class, “Introduction,” are now available.
As the introductory session, I focused the seminar on three topics:
- Why the topic of Personal Finance is worth studying?
- Real data from a survey of students enrolled in the class.
- Full syllabus for the topics that will be covered during the course.
Student Survey Data
The second topic is based on 10 questions I asked every student in the class to complete before the start of the first session. It is hardly a scientifically representative student survey, but I wanted to ground some of the initial discussion of financial topics with data about their own experiences & expectations.
73 students completed the survey. It’s worth sharing the results of the 10 questions here:
A few data points worth sharing:
Question 1: A little over 50% of the class are either graduating seniors or graduate students. Only 14% are freshman or sophomores.
Question 2: Approximately 3/4 of the class (76%) had a “magic number” in mind when asked about how much wealth would define success for them. While the most common answer fell between $10M-$100M, the range spread from $20,000 to $15B. It was truly a blank field in the survey, so students typed in whatever number came to mind, and it started the process of open & honest discussion on why students picked the number they did.
Question 3: 92% of the students reported that they had either “some” or “quite a bit” of knowledge about the finances of their parents or guardians. Given the selection bias inherent in who signed up for this course (or even what type of students end up at Stanford), it’s hard to assign deep meaning to this result, but this was a class of students who clearly had received some meaningful exposure to financial decisions at home.
Question 6: 92% of students in the class do not expect to be responsible for any student loans after graduation. This was the most surprising result to me, based on both overall market data and my own personal experience .
I have two possible hypotheses to explain the result of Question 6. (1) The selection bias for enrollment in the class might explain part of the result. It is possible that the type of students who are most willing to sign up for a class on personal finance are not burdened by student loans. (2) It is possible that the financial aid policies of the premier schools, like Stanford, have been highly effective in lowering the number of students requiring loans dramatically. For families with household income below $125,000, tuition is waived, and 71% of families with up to $245,000 receive scholarship assistance. (In fact, 34% of families making over $245,000 also get scholarship assistance.)
Since the syllabus was not shared in advance, Question 10 gave me a clear read of the expectations and hopes students had coming into the class. Not surprisingly, the students were, for the most part, very pragmatic. They are looking for information about compensation & job offers, the stock market, real estate and how to maximize their earning power during their careers.
Throughout the next few months, I’ll be posting the course material in the hopes of receiving both corrections and ideas for improvement. If there are topics or material out there worth formalizing into the curriculum, I want to know about them.
Best way to reach me about the course will be through twitter @adamnash
Thank you in advance for your help.
5 thoughts on “Stanford CS 007: Personal Finance for Engineers (Kickoff)”
I’ve heard of the famous talks on personal finance for engineers you would give at LinkedIn and other tech companies (but have never been able to track down a recording of it). I’m glad this subject is getting fleshed out into a whole course, and given the high demand for it in it’s first year, I believe it’s safe to say this class has been a long time coming. Good luck on the course!
Also, those are some interesting results, particularly the level of optimism about graduating without student loans. Even with tuition assistance, I’d expect living expenses in Palo Alto to necessitate loans.
Great kickoff. CRN >
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