As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive. …show more content…
Every day of my 10 years as a financial counselor and educator for the Army I was faced with the consequences of young people in the workforce overwhelmed with the financial responsibilities of adulthood.
The lack of the necessary skills, to correctly balance a bank account, understand credit card and loan terms, and creating a budget to ensure the bills get paid (on time), were detrimental to ability of the Soldiers to focus on their jobs while worried about how to take care of their families. I was lucky that the Army (actually all of the Armed Forces believed in the correlation of a Soldier having a basis of the fundamental personal financial money management skills to them being able to do their jobs effectively without having to worry about bill collectors or being evicted from their homes. Soldiers with serious financial issues are also the most tempted to sell information or be recruited by one of our nation’s
enemies. While some financial experts believe that students should start learning about money before they enter high school, this is when many kids begin taking on more financial responsibilities. Teaching a personal finance class to high school students is in sync with what is going on in their lives such as getting drivers licenses, figuring out how to buy and insure their first car all while becoming more aware of gas prices driving to and from school, jobs and school activities. They are also staring to make decisions regarding college and life after high school. Learning about the implications of taking on student loan debt if they’re considering college and learning how credit works before they get bombarded with the “pre-approved” credit card offers. During school, students are taught subjects (literature, history, foreign languages, various math and sciences) that only a few will need after graduation instead of something that everyone needs for the rest of their lives. The goal of teaching financial literacy should be that of self-sufficiency. When we give the gifts of knowledge, empowerment and confidence to both young and adult students then everyone wins. When personal finance education is taught in high school it levels the playing field by ensuring that every adult enters into our economic society knowing how to play the game of life. Unfortunately it does not occur to most parents to include money management in the everyday lessons of life. Sometimes this is because they were never taught these financial lessons so feel inadequate and allow personal financial ignorance to be passed down from generation to generation. Teachers are not to be considered parental replacements. With a subject like this, that affects our society with the many burdens of unemployment and social welfare, it should be the responsibility of the education system to not end with preparing students to make money, schools should teach them how to manage it. Financial literacy will continue to take a back seat until it is seen as a legitimate academic discipline worthy of the attention due subjects such as history and math. There is a need for personal finance specific classes with standardized curriculums for semester long classes that are mandated throughout the country. Education is currently regulated at the state level and each state has its own ideas on how to or whether to go about teaching money management. So how are we supposed to teach today’s students to be tomorrow’s financial leaders with the essential skills needed for success?
One thing that I have learned about college is that you have to sometimes talk about things that make you uncomfortable or scared in order to learn. I do not think I am alone in saying that the United States’ current debt situation is terrifying. Ten trillion dollars alone is an expansive and unimaginable amount of money, and since PBS produced Ten Trillion and Counting in 2009, the national debt has grown to twenty-one trillion. As stated, the documentary was produced during the first months of former President Barack Obama’s first term and focused on former President George W. Bush’s relationship with national debt during his eight year tenure. Ten Trillion and Counting explains some of the questionable decisions that former President Bush made, especially regarding fiscal policy.
We should keep the penny because it has history, in fact it was “the first currency authorized by the United States” (Lewis). The penny no longer has the value that it used to have, but it is still necessary to make purchases as accurate as possible. The penny may seem like a waste of time to many Americans because it takes so long for cashiers to make change, forcing people to wait in line, but it is actually worth the time spent. The penny helps with keeping prices a cent lower, and therefore stimulating the economy. The penny is important to many people who need the money and for whom pennies still have value.
Modern day American capitalism is founded on the concept of credit. Credit, as defined by Dictionary.com, is “ Confidence in a purchaser’s ability and intention to pay,displayed by entrusting the buyer with goods or services without immediate payment,” (Online Etymology Dictionary. Retrieved April 23, 2014, from Dictionary.com website). This pent up credit is what causes consumer debt to swallow individuals whole, robbing them of their financial security. This consumer debt, defined as “ Money owed by individuals, generally for goods or services that they have purchased,” has become a norm among our society (Consumer Debt. (2010). The reason as to why consumer debt is becoming a prime concern for Americans is the inability to make payments, predation of citizens by credit card companies, and how immediate relief leads to disastrous long term results.
In response to the Great Depression, the New Deal was a series of efforts put forth by Franklin D. Roosevelt during his first term as United States’ President. The Great Depression was a cataclysmic economic event starting in the late 1920s that had an international effect. Starting in 1929 the economy started to contract, but it wasn’t until Wall Street started to crash that the pace quickened and its effects were being felt worldwide. What followed was nearly a decade of high unemployment, extreme poverty, and an uncertainty that the economy would ever recover.
Timothy J Penny, Steve Schier. Payment Due: A Nation In Debt, A Generation In Trouble
Every day in New York City, hundreds of people walk past a huge digital billboard with giant numbers across its face. Each person who walks past this billboard sees a slightly different arrangement of numbers, growing larger every second. This board is the National Debt Clock, representing the over 14 trillion dollars currently owed by the United States. While some people claim that the national debt is caused by the falling economy, most maintain that the debt itself causes the poor economy (Budget Deficits 2007). Rising debt leads to higher interest and investment rates, and cuts into our national savings. Ignoring the national debt leaves the major burden of paying it off to later generations, while meanwhile allowing our country’s economy to further drop and our dependency on other nations to rise.
The national debt surfaced after the revolution when the United States government had to borrow funds from the French government and from the Dutch bankers. By 1790, the U.S. government accumulated millions in debt, but no one knew precisely how much. The Constitution mandated that the new government take over the debts of the old government under the Articles of Confederation.
Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
Employers consider a degree necessary for getting a job at their company. However, not many people can afford college. The solution is to take out loans, then college becomes affordable. These loans create a whole different issue, student loan debt. This can affect people their whole lifetime and has been happening for years upon years. But, in the more recent years America is starting to shed more light onto the issue and are becoming curious on why colleges charge twenty five thousand dollars, or more, for a year of education. Many different countries offer free college, but in America student loan debt keeps getting worse.
Children of the twenty first century spend nearly 13 years in school, preparing for what is college, one of the only ways to achieve the so-called “American Dream”. College is the best way to start an advanced career and go further than one possibly could if college degrees were not available, allowing people to achieve their view of the American Dream; whether it be large houses, shiny cars, multiple kids, or financial comfort, college is the stepping stone to achieve the American Dream. But all great things come with a price, college dragging along debt. Students who attend college struggle to find ways to pay for it, leading to applying for student loans. These loans a great short term, paying for the schooling at the moment but eventually the money adds up
Everyone has their own political leaning and that leaning comes from one’s opinion about the Government. Peoples’ opinions are formed by what the parties say they will and will not do, the amounts they want spend and what they want to save. In macroeconomic terms, what the government spends is known as fiscal policy. Fiscal policy is the use of taxation and government spending for the purposes of stimulating or slowing down growth in an economy. Fiscal policy can be used for expansionary reasons, which is aimed at growing the economy and increasing employment, or contractionary which is intended to slow the growth of an economy. Expansionary fiscal policy features increased government spending and decreases in the tax rates as where contractionary policy focuses on lowering government spending and increasing tax rates. It must be understood that fiscal policy is meant to help the economy, although some negative results may arise.
Do you think that making pennies that cost more to make them then what they are really worth, is a waste of money or not? “In 2013, deficit in U.S. was 105 million on penny production.” (Huffingtonpost.com). U.S. tax payers are losing money on penny production. A couple of states have already eliminated the one cent currency. So why can’t we? However, I do understand how we might have to round up the money to a whole number if we didn’t have any pennies, but what if we made the pennies from recycled paper? I’m more then positive it will cost us less to make a paper penny.
This country is progressively getting worse and needs serious change. Our national debt is constantly on the rise just like our national obesity rate. We are out classed in academics and health care. And there are plenty of countries that are getting better and doing better than the United States in many regards. The only thing we beat other countries at is defense since we have the largest military budget which is greater than the next seven countries behind us combined. Another thing the united states leads the world in is the incarceration rate which is the highest in the world. you can't just sit there blindly and not realize America is on the decline. I graduated in 2014 and I can assure you plenty of students read the constitution and
...s are two of the highest reasons that Americans are in debt. Significant debt prevents Americans from spending money on goods and services, and America’s economy is driven by consumer purchasing. I believe the economy can benefit, in the long run, if there are more Americans that are educated and are healthier.
People saddled with student debt are warming up to the government's generous offer to cap their monthly loan payments to a percentage of their earnings. Use of so-called income-driven plans has gone up 56 percent since last year, with 3.9 million borrowers enrolled, the Education Department said Thursday. Even though the effort is paying off, the government still has another pressing problem on its hand: making sure people aren't kicked out of the program for missing deadlines. Hundreds of thousands of borrowers are falling out of income-driven plans for failing to verify their income every year, undermining the effectiveness of the program.