Personal Financial Education Research Paper

770 Words2 Pages
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Recommended: Strengths and weaknesses of financial literacy

Topic: Colleges should have personal financial education courses

Opening/Attention:
Several families during the last year have had issues managing mortgages and foreclosures. Every year, debts continue to increase from credit cards and cutbacks and/or downsizing creating job losses. Though the reasons may be complex, the main factor for these issues is financial illiteracy for many people. Several studies through a financial literacy survey show that adults and youth know little about financial concepts. Through a study done by Lusardi and Tufano , only “35% of respondents figured out that making minimum payments to the interest payment on outstanding credit card debt will never eliminate debt”. If schools implement financial education to …show more content…

Almost 1 in 5 Americans between the ages of 18 to 24, in 2001, announced bankruptcy, in accordance to USA Today. Accumulated debt is the significant factor to most bankruptcies, which makes people at the young age of 15 to be on the possible road to bankruptcy.

b) In a report from the Federal Reserve displays 53 000 student credit card opened in 2008 and 2 million student credit cards by 2009. It is now easy for students to get into debt with agreements between the banks and colleges. Every year, more students are paying for tuition, schoolbooks and other expenses with credit cards.

c) Several students in college between the ages of 18 to 25 have a minimum of one credit card. However, by graduation, half of the students will have 4 or more credit cards with a balance of over $3000 on average. If there was a financial literacy course included in colleges, students would graduate with less debt.

Spoken …show more content…

Schools can be the solution to this issue. We have always trusted teachers with helping our kids understand words and numbers, so we can be guided by them for financial literature.

Bibliography

Awesome Free Ed Tech Resources eBook! (n.d.). Retrieved December 1, 2015, from http://www.emergingedtech.com/2011/04/10-reasons-why-schools-should-be-teaching-financial-literacy-to-our-kids/

I Can’t Make My Student Loan Payments: A True Debt Story. (n.d.). Retrieved December 1, 2015, from https://www.4pillars.ca/blog/i-cant-make-my-student-loan-payments-a-true-debt-story

Northwest, N. (2015, November 9). Financial literacy: 5 tips for taking control of your money - British Columbia - CBC News. Retrieved December 1, 2015, from http://www.cbc.ca/news/canada/british-columbia/financial-literacy-money-saving-cash-finances-taxes-1.3309891

The Navigator Online - Directions and Trends in Higher Education Policy. (n.d.). Retrieved December 1, 2015, from

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