1.Source #1 is the best of all the articles that is relevant to increasing people’s financial literacy. The article states, that they are working to get every school to teach a financial class, “While more states are beginning to require some sort of personal financial instructions, there aren't enough that do…”, but are failing to do enough. As well as stating, “But that hasn't stopped enterprising teachers like Mathew Frost...from working the topic into his student's school day.” This shows even though the states aren't going enough, some teachers are, which is another good way of teaching about financial literacy.
2. Source #1 says, “We need to teach the basics of economics and finances so people can make financial decisions in a changing
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Source #1 is all for helping get financial classes in school, Source #2 is against teaching, as it is thought to be worse for students, and Source #3 talks about it beyond the classrooms of school. First, the discussion of financial literacy class in school. The writer believes financial classes are helping to teach the students’ a little responsibility, and how cruel the world is. In the first article, it discusses how one teacher took time in his classes to let his students deal with a budget, real life situations, and even a family, to try and give them a view of what life was like. Learning basically knowledge of any subject isn't going to make you a master, but it can put you on a path in the right direction. “As in the board game, “Life,” the students are dealt real world circumstances...which might tell them they need new brakes for their car, broke an arm, suffered a death in the family, or found $20.” This is the financial education students need to see before leaving the safety of their parents’ home, without a clue to how unpredictable the world is. This articles provide much more evidence to show how important financial literacy is, even if you only teach students a little on the topic, that's better than not teaching them at
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.
In schools where financial literacy courses are foreign, for example, students as well as teachers may find themselves lost and confused. In Document A, 64% of teachers K-12 reported being unprepared or “not-well qualified” to teach finance. These problems have been outspoken by several critics, such as in Document B, where Burns cites that high schoolers that took a semester-long personal-finance course tested worse than those who did not, and that some feel math or statistics would be much more useful than finance. It’s hard to refute evidence such as this, but subjects can be changed, revamped. Much like we add new things to history when events occur, or science when research proves a new theory, we can improve financial literacy by how the world economy moves. In the digital age of commerce, we can adapt and change our system, much like Thaler in Document C advises, promoting In-time education when needed, simple rules of thumb to create everyday knowledge, and user-friendly support on the Internet to digitalize finance. In an age where you can know the time, temperature, and weather of London at any moment, from anywhere around the world, why should we not be able to ask how to save, when to save, where to save, or whether we're overpaying on a house or car? Those who deem studies on present financial literacy evidence of it being useless and a waste of money must understand that the subject is not set in stone. We will experiment, shift, change, and one day, we will find the right
A portion of the students were placed in the class and a portion of students were not given any formal classroom financial literacy training. All students participated in the Junior Achievement Finance Park simulation in which they were placed in real-life situations and had to make financial decisions. Their decisions affected their personal income and lifestyle within the simulation. The educated group “showed profoundly greater understanding of the financial issues they faced. Their completion rates were higher, they saved more, and they spent less on immediate gratification items such as clothing. These items were consistent with the lessons offered in the curriculum they received” (Carlin & Robinson, 2012). Also, the classroom students were more likely to use available resources, known as decision supports, to help them better understand their potential decisions. An example of a decision support includes additional information provided by a business to further explain their product or its features (i.e. explaining premium options on a health insurance plan). The study believes that “timely decision support and financial literacy training are complements, not substitutes” (Carlin & Robinson,
The banking model of education does not promote critically thinking as there is no dialogue between the teacher and student as the teacher puts the education from the textbook higher than using the knowledge to create a critically thinker and allows him to apply this to him. As my sophomore English teacher lack connection with me and my classmates and focused more on what we should learn from the textbook. While
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.)
The source that would be most likely to students researching new approaches to increasing people’s financial literacy would be “Financial Literacy, Beyond the Classroom” by Richard H. Thaler. In this article, the author describes various ways to assist people with financial responsibilities. For instance, Thaler says after explaining that courses in a classroom would not work, “Because learning decays quickly, it’s best to provide assistance just before a decision is made.” Also, he later states that “another approach is to offer simple rules of thumb to help people cope.” Whereas the other two articles suggested only adding financial literacy courses to schools or completely refuting the idea of financial literacy classes, this article states
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.
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
Another piece of evidence that supports my claim is from the same article where it states “By teaching them basic money concepts from an early age, they can build that literacy as they grow. After graduation day, they will be able to call upon basic principles to help set them up for a lifetime of financial success no matter where their journey takes them.” This tells us that students who learn about money and finance early have better financial success and can continue to build financial literacy as they grow and get
They say that nurturing Americans to be capable of handling their own financial needs is highly unlike in the complicated and fast-moving nature of economics. Lauren Willis cites examples of test scores, saying that “graduates of retirement-planning classes thought their literacy had increased, when their financial test scores had not.” (Burns). However, no studies have proved that taking finance courses can be detrimental to a person’s ability to make economic choices. Therefore, these classes should be incorporated into a student’s academic
I am currently enrolled in a principles of finance class at Christian Bollwage finance academy. I am writing to you today to explain to you that financial literacy is important to everyone. Everyone millionaires and people who make minimum wage kids and adults. This helps a lot of people with money without financial education. There are many reasons why financial education is important.
They believe that these classes will just be a waste of money on a class that won’t properly prepare students for the real world of finance. Some claim that, “they may actually hurt, in part by making their graduates overconfident about limited skills” (Burns). Some believe that students who attend high schools with required financial classes won’t learn as much as is intended, and will leave high school with too much confidence, and will end up making rash decisions. They claim that the classes are just a waste of time and money, because many students wouldn’t even pay enough attention to them to actually learn anything. People also claim that, “we shouldn't fool ourselves into thinking that adding a household finance class to a high school curriculum will in itself create knowledgeable consumers who can understand today's wide array of financial products” (Thaler).
They are spending and borrowing without knowing that interest builds up, or that credit cards aren’t free money. When students take a required financial literacy class, this helps them understand a miniature amount of what need to survive in the world. This helps students not bring on the feelings of megalomania that they might have wealth. Students who take the financial literacy course learn that “ life isn’t going to be as nice as game” (Bernard,2010). Furthermore, students are starting later than their parents to prepare for everything.
The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus...