In this paper we will be looking at the problem of students going into college lack the financial literacy skills that are needed in life and during your college career. We have some secondary sources that give statistics that show that financial literacy is a big problem. Then the solutions are having students from a young age get taught by their parents and also having required classes that deal with financial literacy from elementary school till they graduate from NIU. The people that would be effected either positive or negative are students, parents, tax paying citizens, teachers that teach finance and economics, other teachers and money loaning companies/agencies. In the end this is a 5-10 year project and can either work really well or completely fail. Intro The spring season has begun, that means the start of baseball, winter clothes going into the back of the closet and graduation is approaching. High school students are closing a chapter in their lives and opening a new one. They are moving onto college. Most of them are excited and happy, which they should but most of them have not planned out for college. They are not prepared for the financial management that comes with being a college student. The main …show more content…
Requiring students to take a financial management class so they can learn about financial literacy. Plus at home parents teaching their kids by practicing good financial management skills. Also the state of Illinois getting elementary schools,middle schools and high schools to start teaching their kids about financial literacy so by the time they get to NIU they would have good financial literacy skills. This is the better option but would cost some money to pay the teachers in elementary schools, middle schools, high schools and NIU but in the long run it would help the students and also lowering the student loan
Students are constantly spending money over the course of four years or longer, on so many things from tuition, to dorm rooms, textbooks, and the basic needs like food and water. Many college students are coming straight out of high school. Some of them had jobs, and others did not. If I knew that I had to spend so much money, on everything, right away. I would’ve started working when I was five. Fortunately, I have parents who pay for my tuition, and help me pay for textbooks, and other things I need. But some people don’t have parents who can support their college education, or if they have paid, the cost might build up, and they can no longer afford to pay for school. So they have to withdraw or dropout. This also goes with a small part as to why I believe that college dropout rates are high, like I said, it gets too expensive for people that they can no longer attend college, without going into major debt. Gutting also talks about how, college students get these unrealistic ideas of what college life is from movies, and television shows, making it look like a dream place to go. Don’t get me wrong college can be an amazing time and place to experience new things, but the over exaggeration from the movies and
They worry about how much they can afford and having to make payment arrangements. Some go as far as to think only rich people can afford to go to college. There is a thought that you have to have good credit to get a loan that takes forever to pay back. Many are not aware of the programs that are out there for them to utilize for financial help.
Students entering college for the first time become concerned with their college life. The students are on their own once they enter college. There are no parents or guardians telling them when to do homework, when to go to bed, or how to eat healthy. These students are now responsible for how they are going to succeed in school and meet their own needs. From the beginning, these students wonder what their experience is going to be like and are they going to handle the demands of college?
Walking into Walnut Hills High School right now would have anyone thinking the just walked into the middle of a tornado. Everyone you look there are students running in and out of doors, in and out of cars, and most certainly either turning in missing assignments or retaking tests. There is only one way for you to explain all this ciaos, Senior Year, the year that all teens await with so much excitement and ambition and the year that every single hour long study dates pays off. For the class of 2021 this isn’t just their final year at Walnut Hills this is the year that friends separate and head off to their different university to follow their dreams.
Taking a financial literacy class would help students learn how to stay out of debt. According to the article, “Finance Course Prompts Debate” by Gina Davis, the class would “cover concepts such as money management, consumer rights, and responsibilities,
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
Everyone makes financial decisions on a regular basis of their day. It is important to be educated and informed but high schools now want to have financial literacy classes as a required course. Financial literacy classes should not be mandatory in high schools. The process would be expensive, ineffective, and students wouldn’t take advantage of the course, instead it would harm them.
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.
Some schools have little money and few teachers and Matthew Yale said, “[T]he Department of Education’s next step is to work with districts and teachers and help them find the money they need” (Bernard 6). It will take parents to start this movement (Bernard 7) because parents have to be willing to give up more money so that their children know what to do with their money. Financial literacy courses can potentially make students overconfident about their skills and make them do even worse (Burns 8). Harvard Business School performed a study where it was concluded that financial literacy courses “weren’t effective in changing people’s financial decisions” (Burns 10). Thaler stated “A new paper by three business school professors … uses a technique called meta-analysis looking at results from 168 scientific studies of effects to teach people to be financially astute, or at least less clueless. The authors’ conclusions are clear: over all, financial education is laudable, but not particularly helpful” (13). The shows that financial literacy courses are good but they are not helping the youth as of now, so the right combination has not been found to teach the youth how to control their
As freshman, we came home from school with the mentality that we were no longer children, but rather had entered into a new stage of life. Everything seemed different and new; we weren’t the big kids on campus anymore. We no longer were the persons being looked up to, but rather were the persons looking up to an entire school of older students. We remember joining our firsts clubs, going to dances, and having Orientation days.
With this knowledge and understanding of financial literacy people can have other possible financial benefits include the use of financial products to facilitate business transactions for example, through loans to finance capital expansion and letters of credit to expedite exports and imports, better investment decisions, and improved household consumption through the more responsible financing of durable goods, schooling, and investments for retirement. Therefore, being financial literate can help a person life in the future after retirement. They can still get their needs and wants by themselves and not relying to their children or
You succinctly described the importance of financial literacy. In today’s society of instant gratification, a strong emphasis needs to be placed on financial management. When my wife and I married 11 years ago, one of the many pre-marriage classes we were required to take dealt with finances. This was pivotal to beginning our married life with a strong foundation. As you note, having the basic life necessities is expensive and that is not even factoring in inflation.
Financial illiteracy is a major dilemma in today’s society and is affecting young adults’ everyday lives. Personal finances are not taught to many students in school today, therefore it is more difficult to solve financial problems when they arise. Financial literacy courses are fundamental in helping high school students learn how to make wise decisions with their money; however, the courses need to be made available to younger audiences and their effectiveness needs to be improved. Financial literacy courses allow students to become prepared for their futures as independent adults. Professor Gutter’s research suggested that “College students … from states where there was a course required were more likely to budget … and were more likely to
When students are still in high school, college looms in the distance like an ominous cloud. Frankly, all of the students are scared about going to college. When students go to college they feel like going to the great unknown – to go to a place where they don’t know anyone. But after all college is not that bad.
Financial literacy College is a period where plenty students get exposed to freedom. That can mean trouble if that freedom applies to personal finances also. Students need to understand basic money management skills such as living within a budget and controlling credit and debt. A solid financial foundation can lead to a lifetime of financial success. The importance of financial literacy and precisely the need to encourage financial education has been recognized as an important provider to improved financial inclusion and persons’ financial well-being as well as a support to financial steadiness.