Lack of Personal Finance Education Is a Major Issue in America

January 10, 2014
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Jan+Blog+1+Image-npngoPersonal finance education has always been ignored in the classrooms of America. Math, English, History and other subjects are utterly important, but personal finance is an essential subject that we all need to learn about. The lack of education in this area is the root cause of the rampant credit problem in American households. As personal finance will have an effect on everyone regardless of geographic location, profession or political views, it is high time teachers educate Americans about personal finance. This subject needs to be incorporated into the core curriculum.

The Problem is Worse Than One Might Think
Americans have one of the lowest savings rate among the developed countries. The media hardly scratched the surface of the problem when they mentioned how awful the savings rate of an average American is, or how the youngsters of America are getting into serious financial problems by overspending. The following statistics will help understand the depth of the problem:

Educating Americans Is the Only Solution
As American parents are increasingly participating in the economy, they don’t have enough time to educate kids about household finance. Also, the schooling system in America has ignored the personal finance issue. Only 13 states have put personal finance classes as a required course for high school diplomas, said Council for Economic Education; while only 14 states require schools to offer personal finance courses in the school curriculum.

How Can We Make a Difference?
It is a no-brainer that young Americans need to be taught about basic economics and personal finance. That is the only way to promote better financial decisions in households. As concerned citizens, we must start the change at home first. Teaching our own kids about the function of money at home would be a good start. The next step should be talking to school boards and local congressmen about making personal finance courses mandatory in our classrooms. We can all make a difference in our youth’s future economy, especially at the Federal Government level.

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