Financial Literacy

As people these days grow up, go to school, and enter the workforce, a new problem arises. It isn’t whether or not they can read a book or a magazine; however, it’s whether or not they know how to read a mortgage agreement, or a credit card contract. This incompetence of understanding finance correctly is causing many problems in a vast amount of people’s lives. According to the article, “Working Financial Literacy in with the Three R’s”, “ [most people] aren’t fluent in the language of money. Yet we’re expected to make big financial decisions as early as our teen. ” People have the right to be educated in the United States of America; if the people want to be educated about financial literacy then they should be taught about financial

They are spending and borrowing without knowing that interest builds up, or that credit cards aren’t free money.When students take a required financial literacy class, this helps them understand a miniature amount of what need to survive in the world.This helps students not bring on the feelings of megalomania that they might have wealth. Students who take the financial literacy course learn that “ life isn’t going to be as nice as game” (Bernard,2010). Furthermore, students are starting later than their parents to prepare for everything.Parents used to teach their children how to use money. However, today “Personal finances are not being taught in the home” (Davis,2006). This is a problem seeing how kids/teens/young adults usually depend on their parent to teach what they need (that’s not academic). Yet, “Studies have shown that only 26 percent of thirteen to twenty-one years old reported that their parents actively taught them how to manage money” (Davis,2006).Overall, a required financial literacy is a superb idea to help students get educated about

This is how the national crisis started not because people couldn’t pay the money they borrowed back, but they never stopped for a second and thought about it.Additionally,many college students graduate with debt even if they had a full ride to college because, for example, they bought books,food,tickets to go back home and etc. Moreover, students today can easily get in debt by making one wrong move. For instance, a student has a scholarship for a certain amount if they have they're GPA grater than 3.2 and they missed up in a class so now they have a 3.15 and they got they're scholarship taken away. That student needs to figure now how to pay for college. “College students who came from states where there was a course required were more likely to budget, were more likely to be saving, and were less likely to have maxed out their credit cards in the last year and were more likely to be paying off their credit cards fully” (Davis,2006). That means there is an improvement in society when using this program. In general, today students have more debt options and more debt in