When Young People Don’t Understand Money & Credit
As schools begin across the country, I was talking with a few acquaintances about their children, some of whom are still in high school and others who are beginning college. One parent mentioned that they have their child on a “tight leash” when it comes to money and that they are watching everything he spends. In hearing that, I was thinking to myself, “Why is it necessary for that parent to be micromanaging their child’s spending?”
In general, my feeling is that if a young person has the aptitude to be in college, perhaps they also have the ability to understand the basics of money management.
At the same time, depending on the home, upbringing, and education, some young people who excel academically may not even give a thought about where their next dollar is coming from. They may have never worked part-time and earned money on their own, or they may have not been encouraged to save and manage the money they have earned or been given. ?
Although it has been quite some time since I was in high school, I was fortunate enough to take a class in my senior year called Consumer Economics. The class taught the basics such as how to:
And many other very useful items.
With these basics, I went off to college being able to manage the few bucks I had and honestly, it was a great feeling to have control over my own financial situation.
So, in view of my acquaintance’s concern over her son’s lack of ability to manage his finances, I think every high school student should be required to take a course on credit and money management for the following reasons:
Financial Literacy: Understanding credit and money are the building blocks of financial literacy. It empowers a young person to make better decisions about borrowing, spending, and managing debt, which are essential life skills.
Building Credit History: As we are a credit society, early education on credit, especially on the use of credit cards, helps young people to understand how to build and maintain a good credit history. Without good credit, simple things like getting a car loan or renting an apartment can be very challenging. ?
Avoiding Debt Pitfalls: By learning about the potential dangers of misusing credit, such as high-interest rates and the risk of falling into debt, students can avoid common financial pitfalls and develop responsible credit habits.
Economic Participation: A solid understanding of credit and money enables students to participate more fully in the economy, whether as consumers, future entrepreneurs, or investors. Knowing how to effectively leverage credit can support all kinds of personal and business endeavors.
领英推荐
Long-term Financial Planning: Knowledge of credit and money is essential for long-term financial planning, including saving for retirement, investing, and planning for major life expenses. It encourages students to think ahead and manage their finances with a strategic approach.
Consumer Rights and Protections: Teaching about credit includes understanding consumer rights and protections, helping students navigate financial systems safely and advocate for themselves in situations involving credit agreements and loans.
Without question, incorporating credit and money management education into a high school curriculum will prepare students for the financial realities of adulthood, fostering a generation that is more financially responsible and economically savvy.
Nancy?Seiverd
CMI?Credit Mediators, Inc.
All?Rights Reserved
Image?by freepik.com
If you're still struggling with past due accounts or are worried about current ones that are showing signs they could default, please click here to see our services or give us a call at 1-800-456-3328. There's no reason for past due accounts to become a constant source of concern. With almost 50 years experience, let us be your trusted business partner!