Personal Financial Education Research Paper

Decent Essays
Topic: Colleges should have personal financial education courses

In the last year, a number of families have had problems with managing their mortgages and lost their homes to foreclosures. Each year, credit card debt continues to increase and hundreds to thousands of workers lose their job due to cutbacks and downsizing. Although reasons for these concerns are complicated, one contributing factor is the financial illiteracy of many individuals. Multiple studies have shown that adults and youth score low on financial literacy surveys. Lusardi and Tufano found that only “35% of respondents figured out that making minimum payments to the interest payment on outstanding credit card debt will never eliminate debt”. However,
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A separate study by the NLSY showed that financially literate young adults have parents with ample retirement savings, often invested in stocks. The data suggests that financial literacy is concentrated in the middle and upper classes, but everyone is faced with the same financial decisions. Teaching all kids in schools helps to ensure that all kids are on the same footing when it comes to handling their own money.

c) Student financial education needs to include opportunities to experience the financial world.

Spoken Link: Closing/Call to Action:
Making young people more financially literate won’t create jobs or careers, and it won’t guarantee a good income. However, it can prepare youth to make smarter money decisions in any financial situations they come across in their lives. This is where schools come in. We’ve entrusted teachers since forever with making our kids understand words and numbers. Now, we turn to them for financial
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