Looking at the past 40 years, I have noticed by talking to my family members that while they were young adults freshly getting out of high school many of them made financial mistakes. Could these mistakes have been avoided if they known what to do? Maybe or maybe not who can say; at least they would have had the opportunity to lessen their mistakes if they knew what to do. America has the grade of an F for financial literacy and here are some reasons why. We send our kids to school so that they can go and learn and use what they learned. Highschool is supposed to get us ready for the real world right? So most young adults coming out of high school should now the basics about Financial Literacy like, how to start a bank account, or how credit …show more content…
Credit is a great financial tool to have. But if you don’t make sure your payments are on time then this will destroy your credit and the effects of having bad credit is not being able to get things that you might need, or want. I believe that students should be taught that so that when the time comes they would be ready, and not cluelessly about making their financial choices. There should be lessons in the class that teaches you the do's and don'ts about using different financial tools like, opening a bank account, or how would you pay off your student loans, even taxes. I know it would be very beneficial for students to know this …show more content…
Well in the financial literacy class they would teach you how you should be learning how to budget there money and explain how having a spending plan would ensure that you have enough money to buy things that are important to you. Also when using a budget or a spending plan is a great way to keep you out of debt, or even help you work your way out of debt. In the class there would be courses where you talk about your goals and how you want to look financially to look like. I think this class would help many people in the long run with their fi . When reading an article about keeping up with your personal finances it states “I personally believe that financial stress is one of the hardest things for people to deal with. It can cause enormous strain on all of your relationships and negatively impacts virtually everything you do” (Amy, et al. “6 Advantages of Personal Financial Planning.” Daily Successful Living, 7 Apr. 2018, dailysuccessfulliving.com/6-advantages-personal-financial-planning/.). I agree with this article because it states that “financial stress peaks in the 40s when adults typically have a range of colliding pressures placed upon them” which means that later on down life generations have financial problems. So I think that if the past generations were able to know this information at a young age then it would put us at a better success
In my opinion, what you are being told in high school is only half of the story, once you are in college you realize that you will have to face a financial DEBT, which among students seems to be rising and we are overwhelmed with repayment after graduation. According to studentloanhero.com there is 1.26 trillion in total U.S. student loan debt and there are 43.3 million Americans with student loan debt; these are crazy numbers, which in my opinion shouldn’t be that high and we should formulate a plan to lower the numbers.
Once high school ends, most students progress to college after a year or two from graduation. Due to all of the expenses for textbooks and etc., the student might realize that they don’t comprehend what to conserve or spend their money on to get through their years of college which will leave them clueless on what to do next. With situations like this that might occur, all high school students should take a financial literacy class as part of the mandatory course in order to get a diploma. With a numerous amount of students not having enough knowledge about how to manage their money carefully, presumably they’ll have trouble living their life as an adult. Taking a financial literacy class would help students stay out of debt, they’ll be prepared for their future, and they would recognize the discrepancies between wants and needs.
High school seniors need to be taught economic responsibility. Economic responsibility should not only be taught in the schools, but in the home as well. As we have discussed in prior chapters, some of the reason we are in the mess we find ourselves in is due to the overspending not only by individuals, but the government as well. Arthur MacEwan states, “U.S. consumers have a reliance on credit and fail to look beyond the present” (2012, p. 6) As a consumer the high school senior needs to be taught how to look beyond what they see. How are they going to pay for the credit they have taken out, if our country hits another recession and they are left without employment?
As college students now, we know how important it is to know about how to avoid debts because many of us are or will rely on student loans to get through our higher education. Champlain College’s Center for Financial Literacy used national data to grade each state in the United States on how much effort is put into providing financial literacy for their high school students. Based on the information gathered in 2015 only 5 states obtained a letter A grade on their financial literary education; these states are Utah, Missouri, Tennessee, Alabama, and Virginia. These states require their students to take between half a year to a whole year of a either general financial literacy or personal finance. It is unclear how the student achievement is measured after taking these courses, but the resources to learn about what to expect are provided and are required to be able to graduate from high school, which cannot be said about all other 45 states in our country. 11 of the states were given a letter F grade, including our beloved California. These states do not offer finance classes alone or embedded into other courses. Although the achievement of students who take these courses is not exactly measured after graduating it is still significant information for them to carry with them into their adulthood. Many high school graduates will enroll in a community college or a 4-year university and will be targeted by credit card companies because they lack the knowledge on how important credit is and how to avoid debts. This is not only a worry shared by the graduating students but by the parents as well. MasterCard gave a survey to its cardholder members and 64 percent of these adults said they were worried that their
The general statement made by Lauren E.Willis in her work, “Should College Students Be Prepared to Take a Course in Personal Finance? No: Courses Will Miss the Real Issues”, is that personal-finance courses are ineffective in helping the students making wise decisions. More specifically, Willis argues that the information that students receive from courses is actually stereotyped and misleading, instead, federal regulations, and personal decision and experience are the fundamental solution in how to be financially success. She writes, “What’s more, even experts disagree about the right investment and retirement-savings strategies. Financial offerings change too quickly for regulators to keep up, never mind educators.”
Preparing for college starts well before senior year in high school. The primary purpose of a high school is to get students to go to college. The purpose of going to college is to gain work-related skills and knowledge on the career path a student takes which will eventually be their future. Also, students are investing a lot of money to attend colleges, so they count on high school to prepare them for what they are going to expect in college.
When starting college every student must make a very important decision. Whether if they want to get financial aid or to pay the money up front. Having college debt will not only ruin their credit, but he or she may also have to pay off their tuition for the rest of their life. Research says, “According to the College Board, which tracks students’ financing of higher education, undergraduate students in 2013 through 2014 borrowed in the aggregate nearly $63 billion and received $33.7 billion in Pell grants.” By this quote from “Debt, Merit, and Equity in Higher Education Access” it clearly shows the effects College Debt has on their society, but also on their educational future. Every paycheck they receive, a small portion goes toward paying
Numerous college students own a credit card and half are seriously in credit card debt. Credit scores, payments missing, and interest rates can be financially devastating. There are some factors that contribute to college students being in credit card debt like college students actually paying for tuition, school supplies, and textbooks. Jill M. Norvilitis and Philip Santa Maria points out that “it does not matter what type of card individuals use, the reasons are particularly understood; for college students, credit cards are their only means for paying for their education”. The Card Act helps guide students in campus and informing them about the agreements of the card and preparing them to get financial experience. Some individuals agree that college students are applying for a credit card at a young age and getting in debt early. Even though college is a place where teenagers come to gain information and skills for jobs or to get in debt; should college students have a credit card?
Financial literacy is defined as the ability to understand how money works in the world. Then after high school ends, it is generally believed that the real world begins. So it would stand to reason that financial literacy should be taught in high school. Money is one of the biggest factors in life, both socially and economically. Money equals life in society; it pays your basic necessities.
One might say there is a strong argument for the requirement of financial literacy for students in America. Americans continue to have increased balances on their credit cards as well as show a continued increase in bankruptcy filings according to statistics. Even the “baby boomer” generation is no longer exempt from financial hardships, as their generation has recently taken the title of “Fastest Growing Bankruptcy Demographic” from the 25 – 34 year olds (Linfield, 2011). Would it not make sense to say that Americans need to learn how to budget and borrow more wisely? Would not the best place to start be in schools? Well, the answer to that question is not a simple one.
Numerous amounts of people have financial problems when they get out of high school, so what should the school board do? In 2007, thirty-four out of fifty states have personal finance courses in their curriculum (Bernard 4). A financial literacy course seems to be what a majority of states are doing. Financial literacy courses have their pros and their cons just like everything else. Financial literacy courses bring up some very important questions.
One way our school could accomplish the goal of financial literacy education is creating a set class for high school students towards the end of their high school career. Offering classes in a curriculum that is set helps kids become better prepared for the real world. They receive a better understanding of what it is like having a great deal of responsibility, without the overwhelming of stress that comes with it since the class would be set in a classroom. According to the article written by Laura Langemo from Fox6 entitled “MPS Eighth-Graders Get a Lesson in Financial Literacy”, the Milwaukee Public School District Superintendent Gregory Thornton states, “We need [students] to be ready financially. We need them to be ready to step into the world and be able to actually navigate and manage money.” Students should feel confident after graduating that they will be capable of receiving such a great sense of responsibility. Teaching students about financial literacy at an older age throughout high school will allow them to be ready for their lives ahead. According to this article, many of the students were surprised with how bills amass in such a rapid pace. Similarly, the article from the Sandpiper by Edie Ellison includes information about being able to offer high school students classes in
A personal financial plan is essentially important for any person and their loved ones to minimize future hardships and difficult financial situations. Short and long-term financial freedom and stability is something an individual wants to have through to the end of his or her life. Financially planning for one’s retirement years is vital so a person does not sustain major unhappiness or unnecessary pain in what is supposed to be the reward for working so hard in their younger years.
In today’s world young people are using debt to live what they think is the easy life, buying unnecessary items to keep up with the latest trends, partying, and switching from credit card to credit card to pay off racked up bills. In my opinion young people lack the knowledge, and understanding of how credit works, and what it takes to keep up with the responsibilities of owning a credit card. Another reason young people are getting into debt is from college loans. Some students jump from school to school unsure of what career they want to pursue, and some jump from school to school using financial aid to obtain the luxuries they couldn’t normally afford. I think the biggest reason of all for the debt accrued in the early years of adulthood though is irresponsibility. Young people get into debt because they lack knowledge, have many student loans, and are irresponsible when it comes to handling debt.
Personal Finance is a class I’ve wanted to take for a while now. My major is Finance not because I want a career in finance but more to learn about finance for my own personal situation. This class taught me so much! During this class I was able to evaluate my financial situation and set financial goals for myself. The four topics that helped me the most were emergency savings, buying a car, purchasing a home, retirement, and estate planning. After completing this class I have a better understanding of these topics and how to achieve my financial goals.