There was a great article in the Free Press about financial education. Be sure to pass the word on!
Teach finance know-how in high school.
A load of shifty practices, poor policies and incorrect assumptions by financial businesses precipitated the current crises in real estate and the mortgage industry. But a lot of individuals made bad decisions, too, about how much house they could handle or their prospects for long-term employment and income growth.
Such mistakes are costly. The next generation of home owners should avoid repeating them.
It's to that end that Macomb County state Sen. Michael Switalski is pushing a bill to let Michigan high school students choose a course in "financial literacy" to meet some of their mathematics requirements under the state's new mandatory curriculum.
Switalski's bill moved unanimously through the Senate but sits in the House Education Committee. The Legislature should not let its current session end without sending the measure to Gov. Jennifer Granholm.
This is not about softening the algebra component of the curriculum, but broadening mathematics to offer education in credit, financing, interest, mortgages and debt, all the stuff too many families don't really grasp until they are overwhelmed by some aspect of it.
Young adults could be spared a lot of grief later if they learn responsible money management at an early age, especially how interest works on credit cards. Yes, this could also be learned at home, but a recent national survey found that family finances are rarely discussed among family members.
In another survey, less than half of high school students showed that they understood that a credit card user making only minimum payments each month will ultimately pay more in annual finance charges than the sum of all purchases.
The value of fixed rate mortgages was another weak spot, with only 36% of students understanding how such mortgages protect against inflation.
Government can't dictate how people choose to spend their money. But the state can give students a choice to learn about how to use it wisely.
Subscribe to:
Post Comments (Atom)
1 comment:
student credit cards are widely use by many of the young adults. But they have to be responsible enough in managing their finances well so they wouldn't face debt problems in the future.
Post a Comment