In an article on CNN.com, a case is made for reforms in financial education. Writer, Heather Long, reports that much like sex education, financial education is needed in schools to prepare students for real life.
Financial education is not currently mainstream in K-12 schools, leaving many students overwhelmed and inexperienced when they move out from under their parents’ guidance. With only 17 states requiring a finance 101-type class, the U.S. ranks 14th in financial literacy, behind Israel, Canada, Australia and much of Europe.
Financial education is still very much a “friends and family” type of education, which perpetuates financial inequality since kids from wealthier families will most likely learn better money skills during childhood. Financial education also becomes an individual burden because different people will learn at different levels and in different situations.
Long suggests that since sex education led to a dramatic decline in teen pregnancies, financial education could lead to similar results regarding debt and savings. But even in the few finance classes there are, the information is not drilled into students’ minds like other subjects.
A more extensive financial education before college – and even during college – could alleviate a lot of the financial problems that Americans face now, including student loan debt and saving for retirement. It would also help new workers navigate health care and insurance plans and get people thinking about their financial futures.
Read the full article on CNN.com here.