Most people are not exactly fluent in the language of money. While most courses involving personal finance cannot terminate all of the problems that come with money, it is clear that most people still need help learning how to manage money, especially when they are in high school. The dispute on whether or not high school students should be required to take personal finance classes is a complex one. “Should All High Schoolers Take Courses in Personal Finance?”, is a very detailed article that goes into depth explaining the pros and cons of the argument at hand. After evaluating both sides of the argument, it is evident that making all high schoolers take courses in personal finance has more benefits than it does drawbacks. Opponents of requiring …show more content…
One crucial reason that it is vital for high school students to take personal finance classes is that it would make debt rates plunge significantly. The author of the pros, Alexander Ashe, points this out by saying, “Data recently released by the Investor Education Foundation show high school students who passed mandatory personal finance courses have better-than-average credit scores and lower debt delinquency rates as young adults” (Ashe 2). The Investor Education Foundation empowers people throughout America with the knowledge, skills, and tools to make sound financial decisions in the course of someone’s lifetime. Their data clearly shows that students who take part in personal finance courses have little to no debt. The reason that young people are overwhelmed by poverty, is because they are not aware how to manage what little money they have. People that do not know how to pay the bills and finance their money correctly are more likely to struggle with money related things. If personal finance classes became a requirement, more young adults would know how to correctly manage their money, and the amount of debt people are in would decrease significantly. Another major pro for making personal finance courses mandatory for high school students is that the amount of loans that are
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.
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?
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.
Most of them are very young, anywhere from eighteen to twenty-two. In some cases, they may have never held a “real job,” as many bank on the fact that they will be drafted into a professional league, where they will make millions upon millions of dollars. Also, a great amount of college students do not possess the ability to handle their money in proper and intelligent way. This chart (Bidwell 1) displays how college students are becoming even less financially active and responsible. They tend to spend their money on things other than financial necessities, which the chart shows. Students spend less time focusing on important things like paying bills and balancing their checkbook, and more time dedicated to their other activities in
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.)
career field because of their debt” (Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans). Additionally, even if a college graduate made the decision to make a large purchase, such as a house, “the mounting rate of default on student loans is hurting young people’s credit ratings – and making it much harder for them to buy a home or condominium” (5 alarming facts about America's $1.3 trillion in student loan debt). As a result, student loan debt not only hinders the lives of borrowers, but it also affects the economy. “If student loan borrowers continue to sit on the sidelines and delay diving into economic commitments, the perilous position of the U.S. economy will continue to plod cautiously along rather than prosper with the help of a new generation of well-educated consumers” (Life Delayed:
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.
In the history of the United States, few legitimate businesses have been attacked with the fervor and animosity that critics have been directing toward payday lenders. President Obama has spoken out against payday loans, and some of his top aides met with a coalition of religious leaders recently to discuss the need to regulate the industry. When comedian Sarah Silverman was a guest on Last Week Tonight, she and host John Oliver urged consumers to consider an alternative to payday loans as "literally anything else. " Several states have already enacted legislation that bans or severely limits payday lending. Credit Karma calls payday loans "just bad news.
One way our school could accomplish the goal of financial literacy education is creating a set class for high school students towards the end of their high school career. Offering classes in a curriculum that is set helps kids become better prepared for the real world. They receive a better understanding of what it is like having a great deal of responsibility, without the overwhelming of stress that comes with it since the class would be set in a classroom. According to the article written by Laura Langemo from Fox6 entitled “MPS Eighth-Graders Get a Lesson in Financial Literacy”, the Milwaukee Public School District Superintendent Gregory Thornton states, “We need [students] to be ready financially. We need them to be ready to step into the world and be able to actually navigate and manage money.” Students should feel confident after graduating that they will be capable of receiving such a great sense of responsibility. Teaching students about financial literacy at an older age throughout high school will allow them to be ready for their lives ahead. According to this article, many of the students were surprised with how bills amass in such a rapid pace. Similarly, the article from the Sandpiper by Edie Ellison includes information about being able to offer high school students classes in
Here Comes Debt Our generation is currently more than a trillion dollars in debt, more than any generation before. We are training up students to succeed and go bankrupt or “fail” and stay debt free. Students are being taught it’s either college or failure. They are being brainwashed to believe college is the only option after highschool if they want to succeed in life.
Any area concerning money is typically a difficult topic; it’s not because the topic of money is necessarily a hard topic to grasp, but because many people find it hard to talk about because, in today’s world, most people don’t understand how to manage their money and often find themselves in financial troubles. One of the major reasons why many people find themselves in debt is because they don’t know how to distinguish the difference between wants and needs. People continuously make purchases with their credit cards without realizing that at some point they’ll need to pay that money back, and when that time comes they don’t have the funds to pay off that credit card debit. Another reason why many people find themselves in debt is the cost of going to college. While most people receive scholarships to help pay for
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...
What do you mean the card didn’t go through? Our heart races, we get flustered, our hands start to sweat, people behind us are getting angry and snickering. I think it’s safe to say that we’ve all either been in this situation or seen it happen. Although, credit cards provide breathing room when we don’t have cash, they aren’t always reliable. Face it, most of our day to day transactions are increasingly being taken over by phones. For instance, apple pay, yes there is still a credit card being used, but the payment aspect itself is done through our phone. Alternatives such as google and android pay follow the same concept. Frankly, cash and plastic cards are commodities of the past. Although we still use both on a day to day basis, people
Saving money brings security for any future expenses. The earlier in life an individual begins to save, the better they will be set financially in the years to come. There are several reasons why it is important to save money. A few of these reasons are for emergencies, retirement, and simply for luxury spending. Having money will benefit each of these examples.