#fearlessplus #financialliteracy #whatshouldbetaughtinhighschool
Fearless+ Now: Importance of Financial Literacy
Oct 7, 2021
?? “To combat financial illiteracy, education needs to start early in the classroom.” ??
Did you know?
?? 2 on 3 families lack any type of emergency savings
?? 78% of adults live paycheck to paycheck
?? 3 in 5 adults do not maintain a monthly budget
?? Financial mistakes can be mitigated through financial education.
?? 25 states and the District of Columbia have introduced bills in their 2021 legislative sessions to increase access in financial education. It’s been shown to reduce the likelihood of using payday loans among young adults and is positively correlated with asset accumulation by age 25
?? As a country, we’ve seen millions of Americans, with a general lack of financial planning, struggle every day with their money, only to wind up deep in debt.
There are many things that should be, but often aren’t, taught in school. Some would argue that these things should be taught at home. But they usually aren’t taught there either. Getting these concepts in the schools is the only way we can ensure that all students are getting this information… especially kids who come from broken homes or homes where the parents are too busy to teach their kids and therefore rely on the school system for everything.
1?? How to budget. Budgeting comes down to living within our means, and most adults were never taught this.
2?? How compound interest works. Of all the financial concepts that should be taught in schools, this one would make the biggest impact on children’s futures. Kids need to understand how compound interest works for them and against them.
3?? How to save money. In saving or investing, “pay yourself first” is a simple concept where you focusing on saving and investing with the first money you receive, and then live on the rest.
4?? How to invest. Children should, at a minimum, understand their options for investing. They need to know about stocks, mutual funds, and real estate before a salesman explains these concepts to them.
5?? How credit cards work. There’s plenty of simple and obvious facts kids should learn about credit cards in the classroom, but the most important thing is that they understand the potential dangers.
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Owner/CEO, Money Talk Financial Planning Seminars and Publications. I write, speak, and review content about personal finance topics.
Great article. My key take-away: "Allowing children to go out into the world with no financial education is the same as allowing people to race around with no driving license. People need to know the rules of the road."