Compulsory Personal Finance Education
When you were a teenager did you completely understand about compound interest rates? Or better yet the difference between a traditional savings account and an IRA? I would say the odds are pretty could you didn’t. Even if you did know you more than likely did not learn about it in school.
In most countries today it is mandatory that all students learn about personal finances in elementary school and high school. Such as in the UK where it was recently implemented. Today most children when leaving the home either for college or for work had little or no idea of how to manage their money build a savings or how to manage their bills. All that is taught in school today is how to do the math but not about personal finances or the dangers of not knowing how to manage their money. What is taught is not the reality but rather how to calculate the figures. It is never explained about the results of having a contract or the risks involved with a high APR. Nothing is taught about what it costs to have the latest laptop and what constitutes a good credit rating. No one cares about when you are over drawn at the bank and in the long run spending more than you bring home.
We want to teach the dangers of when students mismanage their money. We want our students to know about personal finances and how to manage their money in tough times and when the unexpected happens.
Many lawmakers in different countries have tried to pass laws to help students learn about personal finances, however, they were shot down each and every time.
Unfortunately it takes people to be in debt for them to function to get ahead. The way is always spend way over what you bring home. To live from hand to mouth. It’s all about fueling debt recovery services, personal loans and the banking industry. Many lawmakers are currently attempting to pass a petition that says in part:
“Schools are already teaching personal, health and social growth that is a foundation for students to learn about personal finance. They currently study already to enable them to handle their personal finances when they leave school. They already know how to achieve their dreams and goals and how to live in a society where they can adequately manage their financial lives to do this.
This response is not nearly enough. What should have been said is that the current system needs to be completely changed and introduce modules focused on personal finances at the elementary and high school levels should be put in place. Children at this level should know how to manage their money however they don’t.
To leave this type of education until the last years of high school is too late.
If children were taught how to take $20 and turn it into thousands would definitely get attention. This is what children need to be taught as soon as possible. The earlier they know the better chance they have of successfully managing their personal finances and learning how to save money.