Should Financial Literacy Course Be Mandatory?

Americas debt has doubled over the past several years, and most Americans do not know how to manage their finances. One of the only solutions that come to mind when thinking of how to make the economy better is financial literacy courses. [Thesis] Students should be required to take financial literacy class before graduating high school because [Reason 1] people need to learn how to logically make financial decisions, [Reason 2] and also to prepare people to make important economic decisions in an ever changing economy.

The idea of adding a financial literacy course into schools curriculums and requiring students to take it before graduating is a current decision being considered by numerous school districts. Supporters of this idea say that it would have a positive effect while the people who oppose this idea state that financial courses don’t work.

In the past years America began to suffer in economic field and in areas such as inflation. There are many reasons behind this misfortune, one of which is the financial illiteracy of the nation as a whole. A mandatory for graduation, financial literacy class in high school can be a solution to the problem of economical instability in the country. This course will prepare the young adults for the future that lies ahead, by teaching the responsibilities such as money management, consumer rights, credit, debit, and savings (source #3). In addition, the gained skill will both be helpful now, in solving problems with the credit card debt, and in the future, when determining the amount of taxes and bills one has to pay. Recently, several states

The Federal Reserve statistics indicate that the average U.S. household has a credit card balance of $7,283 while the average indebted household has an outstanding balance of $15,611 (Bricker, et al., 2014). Only home mortgages and student loans exceed credit card balances. If consumers hope to create an appropriate level of wealth to support themselves in the latter years of life and avoid counting on government programs as their primary source of income, consumers will need to save more of their income. Servicing credit card debt required approximately 13.9% of consumer’s disposable income in the fourth quarter of 2008 (Wilcox, Block, & Eisenstein, 2011). If these dollars were available as contributions into a retirement account on behalf of the consumer, countless people would be confident about their ability to save for an appropriate lifestyle in retirement. The abuse of credit card usage may be caused by a lack of spending discipline, lack of information or a lack of financial literacy, or a combination of the three. These shortfalls are examined to determine if policy makers can intervene to motivate consumers to generate improved decisions regarding the use of credit cards. The first step in this process is having a basic understanding or knowledge of financial matters. The need for improving financial literacy in America continues to grow as financial products and services continue to become evolve in complexity. The Great Recession has recently proved that financial literacy in this country has room for improvement at all economic levels. The CARD Act required The Secretary of Education and the Director of the Office of Financial Education of the Department of the Treasury to coordinate with the President’s Advisory Council on Financial Literacy to develop a strategic plan to improve, expand and support financial

Being able to manage your money is an important skill to have as an adult, but the current education system does not make financial management a required class to take. While some people think that parents are the ones responsible, this should not be

Specially trained students of Indiana University offer one-on-one financial counseling to other students. These students are known apart of the “Money Smarts Team.” They teach students and help them understand basic information like how to create- and stick to- a budget, managing credit card debt, and how to make better decisions which would result in them borrowing less.

Many different studies have shown that having a mandatory financial literacy class would not be helpful for students because they think that they know everything when they do not and when tested they don't score any better than those that do take the course. The mandatory financial literacy class is not good enough right not for a changing world. Therefore, students should not be forced into a class that might hurt them in the long run.

I think learning to handle money and debt should be taught at early childhood stage. It should a part of our education and life plan to be prepared to better face the future. This can help young generation to plan their life and be capable of solving any financial issue they

Once you learn something at an earlier point in life, it is most likely to stay with you throughout your whole life. When a baby is born and it hears its family speaking in a certain language, it then starts to store those words in its brain and also starts to speak that language, that language is most likely to stay with that kid unless that kid starts to speak 2 languages. And just like that, when you are taught about financial literacy at a younger age, that information that is given to you is most likely going to be stored in your brain for most of your life. Not being taught about financial literacy can lead to having a heart attack, weight gain/loss problems, diabetes, cancer, high blood pressure, substance abuse, etc. I know a few people that are confused and stressed about their future jobs, their current jobs, managing bills, etc, and I always ask them what they would want to do to fix and and their response is “I wish I was taught about what financial problems could lead to.” , and so that is another great reason to why financial literacy classes should be a subject. The pros in learning about financial literacy at a younger age can lead to living a better quality of life, lesser health problems (I have listed them above), and minor financial problems.

Over time, that situation has changed as a result of the “Great Recession.” There are more stringent regulations around young people and access to credit, but does that mean that personal finance education is no longer important? Young adults may have to wait a little longer to get access to credit, but they will eventually have access either through credit cards, car loans, mortgages, or even “rent-to-own” style purchases.

Lyons et al. (2006) determined that the majority of college students (76.7%) indicated that they had gone to their parents for financial information. A study completed in 2010 by Bryce Jorgensen and Jyoti Slava tested the perceived parental influence on the education of the financial literacy of college students. This study found that parental income had a significant influence on the perceived parental influence of financial knowledge on students (Jorgensen and Savla, 2010). Parents earning higher incomes had their children perceive a greater amount of influence that they had on their financial literacy, and the more positive that their children's financial attitudes and behaviors tended to be (Jorgensen and Savla, 2010).The study also indicated that students who reported learning about finance explicitly from their parents had better financial attitudes and behaviors, yet lower financial knowledge than students who reported learning only implicitly about finances from their parents (Jorgensen and Savla, 2010). These findings were attributed to the fact that parents with higher incomes have a greater number of opportunities to interact with their children in a diverse financial transactions than parents with lower incomes, such as buying a car or renting a college apartment. (Jorgensen and Savla, 2010). A separate study showed that high school and college students who observed their parents in financial experiences, such as observing the saving habits of their parents, had a greater amount of financial investment knowledge and savings (Peng et al.

Studies have shown that writing down your goals and aspirations significantly increase your ability to accomplish them; and this includes financial goals. The Financial Literacy Course taught during my junior year provided insight and information as to how money, and the financial economy, impacts individuals, businesses and communities. This course included chapters on personal credit, financial planning, the stock market, checking accounts, loans, mortgages, insurance, and financial planning. The course also stressed the importance of setting short term and long term goals. My short term goal focuses on my first year in college, while my long term goals are for five and ten years from now.

Financial literacy is the ability to wield your money and income to aptly. Multiple states have laws passed so that it is a requirement for people to know this skill. Though, many feel that it is a wasted effort. Financial Literacy is a vital skill in life and should be taught in school. There are three reason as for why financial literacy should be taught.

A nearly unanimous 99% of adults now agree that personal finance should be taught in high school, according to a poll last month from Harris Interactive sponsored by Bank of America (Kadlec,

First, if we did have a Personal Finance class, it would help students, and it would prepare them with money issues they would have to deal with on their own. Students can have benefits from taking a class like this. According to a student from John Champe High School in Virginia in the article "Rithmetic and Retirement? Teens learn about 401(k)s," she admits having benefits from taking the class. As you can see Principal Parker, having a class like this will assist them in making better decisions with their own money. It opens their eyes to