Thanks to guest writer Krisca C. Te for working with me to develop this week’s feature post on the importance of financial literacy education for our high school and college students.
In the past, a teacher telling kids how to spend their allowance money might be promptly put in her place by the PTA. Money matters were personal, and to be kept within the family. With the increasingly difficult financial conditions bought on by recession and other fiscal challenges in the US and abroad, it would be a great time for schools to help to give our kids a fighting chance. In recent years, many academics have pushed for the introduction of financial literacy into the school curriculum.
The need to educate our kids about money is simply greater than ever. Here’s 10 reasons why.
1. They don’t know enough. Studies by the Jumpstart Coalition for Personal Financial Literacy and the National Longitudinal Survey of Youth have shown that many young people have little understanding of finance and economics. They are spending and borrowing without knowing that interest builds up, or that credit cards aren’t free money.
2. They are starting younger. The weekly-allowance system is used in many families. Five dollars for the candy store may not seem so bad, but pre-teens stretching $25 over one week will need a bit more guidance.