States start to require courses in financial literacy

http://www.usatoday.com/money/perfi/bas ... rses_n.htm

Well all I can say is its about time for this. Hard to believe it took so long to add this to basic education. The only problem seems to be finding qualified instructors. LOL
Basic understanding of taxes, insurance, banking, loans and credit cards should be taught in HS I would think senior or junior level would make more sense than freshman though.

"Incoming high school freshmen will be required to take a one-credit course outlining the ABCs of economics and personal finance.

Virginia joins a handful of states, including Missouri, Utah and Tennessee, that mandate a class in financial education. Similar legislation aimed at improving students' financial literacy has been introduced in Maryland, while several states require teachers to weave personal finance lessons into existing coursework."

How do you feel about states not requiring civics lessons any more?

You're so concerned about financial literacy. I just wondered how you feel about uneducated voters.

Bravo! Financial literacy is much more useful to most high school kids than higher math courses.

Civics courses? They should require civics courses.

I think they should at least teach how to balance a checkbook, and read a credit card report.

"I still have checks" doesn't cut it.

I wonder if high school is the right place to do it. I suppose it will not hurt, but my thought is the timing is off. It's always best to learn something when you have a vested interest. Most students in HS simply do not work so they will have a hard time relating to the subject matter. Obviously one needs to start somewhere. And, no matter when or where it is taught, there will always be some who just don't get it.

Rockdoc Franz wrote: I wonder if high school is the right place to do it. I suppose it will not hurt, but my thought is the timing is off. It's always best to learn something when you have a vested interest. Most students in HS simply do not work so they will have a hard time relating to the subject matter. Obviously one needs to start somewhere. And, no matter when or where it is taught, there will always be some who just don't get it.

:thumbsup: Good point. You do learn it a lot better when it affects your own life. Maybe offer it to seniors who don't plan to go to college and likely are already working. Some kids I went to school with were already helping with thier household finances before they graduated.

My wife and I have wanted to see this for years..... we even considered going to the school board with a proposed curriculum.
I feel this would help out society not by just understanding their personal finance but the how the government does it as well..

We have taught our kids about finance even had them run a mock budget with a monthly income and bills. We taught them about credit/credit cards/credit ratings. School classes would have help as well....

This is a very good thing IMO....

Back in the day, I remember a 'family life' course in HS - it was probably an elective but I don't recall that... We had to research jobs in the field we were interested in, determine starting salary and then build a budget based on that including going out and researching apartments to determine rents, groceries etc.

There's an amazingly naive assumption out there that loan defaults are caused/related to the lack of financial literacy.

I think it's nonsense.

I helped develop a financial literacy assessment tool for a student loan company about a decade ago.

Student loan default isn't caused by the lack of financial literacy. Loan defaults are caused by failure to complete college (the student borrows the money, but does not have the additional earning power, since s/he did not graduate).

I can understand finances as much as you'd like - but if I don't have a degree --- it's likely I won't be able to pay back the loan.

The problems:
- education is an entitlement (nope)
- anybody can graduate (nope)
- if you don't graduate, it's not your fault (partial nope)

bailey bud wrote: There's an amazingly naive assumption out there that loan defaults are caused/related to the lack of financial literacy.

I think it's nonsense.

I helped develop a financial literacy assessment tool for a student loan company about a decade ago.

Student loan default isn't caused by the lack of financial literacy. Loan defaults are caused by failure to complete college (the student borrows the money, but does not have the additional earning power, since s/he did not graduate).

I can understand finances as much as you'd like - but if I don't have a degree --- it's likely I won't be able to pay back the loan.

The problems:
- education is an entitlement (nope)
- anybody can graduate (nope)
- if you don't graduate, it's not your fault (partial nope)

Disagee. I have a degree in finance and think the mortgage companies try to keep people as confused as possible when they take out a new loan.

And that would be part of the course if I designed it, showing possible pitfalls and warning the students to be very wary of the lenders and check out their consumer rankings.