Name: Jeruhan Rivera. Professors Conboy ENG 1010 Date 2/7/24 Should financial literacy be a required class? A whopping 95% of Americans wish financial literacy were tough in schools, as they struggle with money. Young adults notice the difficulties of not learning finance in school, as they experience the cost of debt, savings, retirement plans, and much more. They see these struggles happen to them, they wish for better for their children and to do that, the pending legislation for the 34 states in America should be approved. Even though seven states have already approved the legislation, it will barely make a dent in the percentages. Reasoning: I think financial literacy should be a required class in high schools since it will help them in their futures. The negatives of not learning financial literacy. 38% of Americans have debt and 30% have no money or retirement plan. Showing the lack of financial literacy impacting young adults, not being taught financial skills before going out in a world full of it, is like putting someone out there to struggle. And having a lack of skill in finance has made many young adults not have emergency funds, savings, a retirement plan, and a good credit score. This has …show more content…
Being taught financial skills in high school teaches students the top 2 most important aspects of finance: credit scores and debt. As you ask yourself what debt has to do with finance, most students think that debt is when you borrow $3,000 and pay back $3,000, but the money you borrow always gains interest, which is the price you pay to borrow money, or the return earned on an investment. Without knowing this simple skill, many young adults are dozens of dollars in debt. They would get a credit card since they would think it would help them, but it only helps if you know how to use it. Many young adults would get accepted for a good amount and waste it fast, thinking it is free money without knowing the consequences of
Once high school ends, most students progress to college after a year or two from graduation. Due to all of the expenses for textbooks and etc., the student might realize that they don’t comprehend what to conserve or spend their money on to get through their years of college which will leave them clueless on what to do next. With situations like this that might occur, all high school students should take a financial literacy class as part of the mandatory course in order to get a diploma. With a numerous amount of students not having enough knowledge about how to manage their money carefully, presumably they’ll have trouble living their life as an adult. Taking a financial literacy class would help students stay out of debt, they’ll be prepared for their future, and they would recognize the discrepancies between wants and needs.
Most kids that have graduated high school have never been educated on the subject of personal finance, so they don’t know things like how to pay bills, or even how to do something as simple as applying for a job. According to a family friend of mine, Ron Hart; who happens to also be an award-wining author and TV/radio commentator, believes that students in high school don’t learn anything about how to get a job or get prepared financially. He states that, “ Students should prepare for a job. Maybe, instead of taking a fifth field trip to the Trail of Tears site, do one to learn about real jobs in an area they might want.” Hart believes that most basic high schools aren’t teaching students how to become financially stable for their future, which can cause major issues. He claims that “few schools teach about the value of hard work, ingenuity, gumption and entrepreneurship. Those lessons are as rare as Donald Trump bumper stickers in the faculty parking lot.” Hart also goes on to talk about how high school does not prepare you for life the same way college will. There are so many more lessons to learn there that people are missing out on. College is very important due to the fact that it will teach students more skills about finance and job seeking that most high schools don’t. In college, kids will learn how to save and budget their money, pay for their own expenses, and prioritize their needs verses their wants. Learning financial responsibility is also something that kids will carry with them throughout their jobs and their life. Having more freedom to understand the concepts of person finance will allow students to make mature decisions while easing their way into real world
Public education could have done a better job promoting what happens at 17 or 18 when graduating. We were briefly advised to go to college or go into the workforce to become employees. As students, we had been told college makes you more money, and that we were all encouraged to apply. I doubted the majority of students took the responsibility to look at costs of college, tuition, and housing and understand the loans and how long it would take to pay them off. It felt that we hadn’t been taught the value of money, only that we needed to make a lot of it. I had been fortunate for working in a bank my high school years that I had understood more than others about loans, rates, mortgages, and credit cards. The financial aspect of life after high school was rarely brought
is a known issue that persecutes people throughout their adult life, Bok in his cartoon recreates the massive amount of debt that now in day’s crushes students after their graduation and with sarcastic tone indicates the fact that the Universities say to be preparing you for life. In my opinion, the image recreates the whole misconception behind education, yes, it is very good for you to get that good quality education and better yourself but in reality the way you thrive in this modern society is via the formula you use to build that better life; which is created by educating yourself, life events and the hours you spend formulating your plan to get where you want to be. As a fulltime employee, father and husband I can tell you that many times we spend more than the necessary thinking about debt and how am I going to repay without placing in jeopardy the well-being of my beloved ones or myself, yes, you can’t plan to pay all your debt and not go out and have fun. As a student you have to come up with your own plan and figure out what you’re going to do with your financial responsibilities, I guess that’s the part that Bok makes the most emphasis, in other word
High school seniors need to be taught economic responsibility. Economic responsibility should not only be taught in the schools, but in the home as well. As we have discussed in prior chapters, some of the reason we are in the mess we find ourselves in is due to the overspending not only by individuals, but the government as well. Arthur MacEwan states, “U.S. consumers have a reliance on credit and fail to look beyond the present” (2012, p. 6) As a consumer the high school senior needs to be taught how to look beyond what they see. How are they going to pay for the credit they have taken out, if our country hits another recession and they are left without employment?
I think that making students go to personal finance classes during high school is a good thing. It educates younger people on how to manage their money and how to make purchases and that’s just a start. It will teach you how to build wealth and set a good foundation for the future.
One might say there is a strong argument for the requirement of financial literacy for students in America. Americans continue to have increased balances on their credit cards as well as show a continued increase in bankruptcy filings according to statistics. Even the “baby boomer” generation is no longer exempt from financial hardships, as their generation has recently taken the title of “Fastest Growing Bankruptcy Demographic” from the 25 – 34 year olds (Linfield, 2011). Would it not make sense to say that Americans need to learn how to budget and borrow more wisely? Would not the best place to start be in schools? Well, the answer to that question is not a simple one.
Instant gratification or easy access to almost everything is necessary, to have the right clothes and the right shoes, but usually they have no money to buy it with. This is where credit cards come into play, and where many individuals see credit cards as free money. They assume that they can buy it now, and of course, pay it later assuring themselves and their family that they will have the money. This comes down to responsibility; can college students handle budgeting their money? According to a study conducted by a Midwestern University shows approximately 66% of college students did in fact own at least one credit card. Some students can handle it and some can’t, it all depends on what priorities that person has. If buying a hamburger or new video game and not thinking about it is more important than paying that purchase off and establishing credit than those priorities are not good. Credit cards are just another factor in growing up. It 's learning what boundaries you have and what responsibilities are
Today’s college students are bombarded with ads, commercials and mailings telling us that we need to spend money to be happy. At the same time, many of us come to college very ill-equipped to handle our finances. Financial literacy, defined as "the ability to use knowledge and skills to manage one's financial resources effectively for lifetime financial security," is important in our money matters as well as academic performance. Based on your understanding of financial literacy and experience (or lack thereof) of personal finance, 1) pick two personal finance topics (including but not limited to: credit cards, student loans, budgeting, saving, banking, and investment, etc.)
How is financial literacy taught to have an effect on people in America? Introduction Financial Literacy is “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being” (Mandelle). Many people in America today, old and young, lack financial skills such as, paying taxes or money management. The main significance of taking a financial literacy course is to inform people that there are ways to manage money and save for investments.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
Numerous amounts of people have financial problems when they get out of high school, so what should the school board do? In 2007, thirty-four out of fifty states have personal finance courses in their curriculum (Bernard 4). A financial literacy course seems to be what a majority of states are doing. Financial literacy courses have their pros and their cons just like everything else. Financial literacy courses bring up some very important questions.
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
Do the kids of today understand what a 401K is, how taxes work or how one goes about buying stocks? Most do not, as financial literacy, the ability to understand how money works in the world, is not a required class in school. Despite being a required part of modern life. This is presenting a major problem to those who are about to be released into the world with little to no knowledge about it. Financial Literacy should be required in high schools as students do not receive education on the topic anywhere else, it will help them later in life and it could improve their financial choices.
The lack of knowledge plays a big part in the debt young people are getting themselves into. Credit cards are often offered to young adults as soon as they get out of high school. Many take advantage of having a credit card without even thinking about the responsibilities that come with it, instead they think about the things they will be able to buy. In “Generation Debt” the author Tamara Draut says that young people are getting into debt younger than ever before. Two of the reasons that are more costly on young students that hit hard on the budget are car repairs, and travel for students who have families and friends in other states (231). From my experience I know first-hand what it was like to be offered credit cards right out of high school, and I didn’t hesitate to get any of them. I st...