Financial Literacy Class

The general statement made by Annamaria Lusardi in her work, “Should colleges require a financial literacy class? YES: Ignorance carries a high price”, is that personal finance class is essential for college students to be successful beyond graduation. More specifically, the writer argues that students who with little knowledge about how the finance works often in time end up with in debt even before they enter the real world of survival, because they have no idea of the complex system of finance. Lusardi states, “Our analysis of the latest National Financial Capability Study, or NFCS, finds that more than half of millennials take on student loans without even attempting to calculate what their payments will be.” This passage is suggesting

After four years of college, the money is quadruple of the original amount of money that the students see on contract, in addition, the students also have to pay the interest fee that may count up to 20% of the loan. Moreover, the writer insists that a financial literacy class brings numerous benefits, “ Teaching personal finance is not about describing financial products, it is about teaching the principles of financial decision-making so that people understand how financial instruments work. When people are knowledgeable, they also are better able to benefit from the services of financial advisers.” The statement is saying that financial literacy class provides the basic information for people in making financial decision, and the audience is not limited to college students, adults who are still blurry with the concepts are also suggested to take a personal finance class. Learning how the entire system works in not just learning how to prevent any difficulty in managing the money but also how to manage the money in a way that brings feedbacks to the people, for example, it teaches people how to earn money from difference