Do You Think Public Schools Should Teach Financial Education?

[myrdale]

Around 7th or 8th grade, we had a class called Government which oddly had some random economics mixed in. We bought and sold stock over a 6 week period (fake that is). I think there was a short intro to balancing a check book as well.

This is one where I would think someone like Dave Ramsey would have content that could be used. I think it would be listed as an elective and would be more appropriate in the 10th or 11th grade year.

I also think schools should have to provide an annual budget / financial report.

[Keshet]

When I was in school we had financial lessons mixed in with math. We'd get the "story questions"...."Timmy earns $10 a week delivering papers. The new bike he wants costs $40. If he saves 40% of paper route money how long will it take him to save enough for a new bike?". That sort of thing.

Interestingly one of the things I remember learning as a child about money was from watching "The Lucille Ball Show". Lucy was being wasteful in some way, and told Mr. Mooney "it's only a few cents". Mr. Mooney uses his adding machine to show her how saving a small amount of money every month can grow over time and explains compound interest to her. I think I was the 10 yr. old who could explain compound interest to adults.

[msomnipotent]

When I was in school we had financial lessons mixed in with math. We'd get the "story questions"...."Timmy earns $10 a week delivering papers. The new bike he wants costs $40. If he saves 40% of paper route money how long will it take him to save enough for a new bike?". That sort of thing.

Interestingly one of the things I remember learning as a child about money was from watching "The Lucille Ball Show". Lucy was being wasteful in some way, and told Mr. Mooney "it's only a few cents". Mr. Mooney uses his adding machine to show her how saving a small amount of money every month can grow over time and explains compound interest to her. I think I was the 10 yr. old who could explain compound interest to adults.

Isn't it surprising how we learn? I overheard a grocery store owner reprimanding a boy caught stealing a pack of gum when I was probably 5 or 6 years old. Util then, I assumed food was "just there" in a grocery store, but he said that he had to pay money for the gum, money to get it to the store, etc, and he would be ruined if everyone thought that they should have gum for free. It was one of the first "nothing is free" lessons I remember.

[IHateCreditCards]

I don't think we do it very well.


Of course, that means that the vast majority - 62% - do not, so most people are getting the message.

The other thing that those stats always leave out is the reason for the debt. Many people tend to assume that it's all due to frivolous spending. In reality, a lot of it is due to medical bills, often coupled with unemployment forcing people to turn to the credit cards to put food on the table and keep a roof over their heads.

The 38% also includes folks who are playing the credit card game on purpose by taking full advantage of 0% offers and carrying the debt as long as they possibly can.

As I mentioned before, the current figure (as of July 2018) is that 41.2% of U.S. households are behind on their credit card payments. But not everyone even has a credit card - according to several sources, only about 70% of American adults do. So, 41.2% of U.S. households are behind on their payments, only 28.8% (70% with credit cards - 41.2% who are behind) are current on their credit card payments, and the remaining 30% do not have credit cards at all (and many of those people are mistreated by payday lenders).

So, an astonishing 59% (equals 41.2% behind on payments divided by 70% who even have credit cards) of U.S. households that even have credit cards are behind on their payments, which alarms me.

[IHateCreditCards]

Actually, about 59% of people with credit cards are behind on their payments!

I don't think we do it very well.


Of course, that means that the vast majority - 62% - do not, so most people are getting the message.

The other thing that those stats always leave out is the reason for the debt. Many people tend to assume that it's all due to frivolous spending. In reality, a lot of it is due to medical bills, often coupled with unemployment forcing people to turn to the credit cards to put food on the table and keep a roof over their heads.

The 38% also includes folks who are playing the credit card game on purpose by taking full advantage of 0% offers and carrying the debt as long as they possibly can.

As I mentioned before, the current figure (as of July 2018) is that 41.2% of U.S. households are behind on their credit card payments. But not everyone even has a credit card - according to several sources, only about 70% of American adults do. So, 41.2% of U.S. households are behind on their payments, only 28.8% (70% with credit cards - 41.2% who are behind) are current on their credit card payments, and the remaining 30% do not have credit cards at all (and many of those people are mistreated by payday lenders).

So, an astonishing 59% (equals 41.2% behind on payments divided by 70% who even have credit cards) of U.S. households that even have credit cards are behind on their payments, which alarms me.

So, whether or not the good people of America are getting the message or not, they are having difficulty implementing it and taking care of themselves financially.

[disneysteve]

So, whether or not the good people of America are getting the message or not, they are having difficulty implementing it and taking care of themselves financially.

So what's your point? This thread is asking if more financial education is needed. I say a very firm YES. I think all the stats you keep posting just confirm that. Not enough people are getting the message because nobody is giving them that message in a formal, structured way starting from a young age before they've had a chance to get themselves in trouble and form bad habits.