Financial+Literacy

From Brian Page @FinEdChat

Did you know… • We are asking our children to make one of the biggest debt choices of their lives while still in high school, student debt. Student debt has now surpassed credit card debt - - it is __ $1 trillion __. Yet in 46 states kids are unlikely to be introduced to resources like __ this one __ and __ this one __ to help them make an informed college choice.

Article on Student Debt: http://www.consumerfinance.gov/blog/too-big-to-fail-student-debt-hits-a-trillion/ http://studentaid.ed.gov/ http://www.consumerfinance.gov/paying-for-college/

• Lots of high school students have jobs and pay taxes, but they don't know how to fill out basic tax forms or file for themselves. It is time we begin integrating resources like __ this one __ so they understand their taxes.

http://apps.irs.gov/app/understandingTaxes/index.jsp

• According to __ this research __, the biggest mistake low-moderate income (LMI) Americans make is they do not have any emergency savings. They do not use any basic banking services such as a direct deposit or a saving account. It baffles me that we do not teach our kids the importance of savings, or the power of compound interest using resources like __ this one __.

http://www.youtube.com/watch?v=9qg6bjwqqgU&feature=youtube_gdata http://www.consumerfed.org/news/623

• Many high school students are purchasing cars on their own, without any direction or understanding of the total financial obligation. We owe it to them to provide resources like __ this __ so they can make informed choices.

• Of those who carry a balance on their credit card from one billing cycle to the next, the average credit debt is __ $15,418 __. When our high school students turn 18, they are eligible for a credit card (with a co-signer), and if used wisely, it can be a great tool for them to build their credit score. If used inappropriately, it can ruin their lives. It is time we start to teach kids to understand credit card solicitations and their credit bills using resources like __ this one __.

• A lot of our high school students have trouble figuring out what career field would be a good fit for them. Resources like __ this one __ are very helpful, and we owe it to them to expose them to this information.

Each resource makes up the framework for an important step in the education ladder missing in __ 46 states __. Yet the research is clear that there is a direct link between __ inequality and financial literacy __. Equally as clear is a message from our parents. A resounding __ 93% __ of parents wish to see financial literacy courses taught in high school.

I want our children first introduced to complicated financial concepts and contracts by teachers who love them and who are trying to help them, not by someone trying to trick them. Relying on the school of hard knocks should not be an option anymore. It is time a step is added in the ladder to empower future generations to make wise and informed financial choices. Personal Finance should be integrated into every child’s K-12 educational experience, and a course in Personal Finance should be a semester-long high school graduation requirement.