digg

Join DiggAbout

The Digg Crew wants to hear your thoughts!
Please take our short survey about Digg and potential feature ideas.

90% of People Believe Personal Finance Should a Required Part of School

savingwithoutabudget.com — The logic behind teaching children and teenagers about personal finance is pretty obvious. Just think of all of the finance cliches that you ’ve heard: start investing as early as you can, the most important factor in investing is time, don’t get into credit card debt, etc. - all things that are best to learn sooner rather than later.

show profanity settings
expand all
  • NICU, on 10/12/2007, -6/+32It's been quite a few years since I was in high school, but our teachers taught us about personal finance, the problem is that no students listened. An introductory course at my college taught personal finance, and almost every math professor used personal finance in examples. Still the problem is that too many kids don't listen and assume someone else will take care of them.
    • DaWolfman, on 10/12/2007, -2/+58The problem in that scenario is that high school kids don't have money. When I was in college, I really didn't give a ***** about investing. Once I got out of college, everything changed. Now I'm reading about market fluctuations, the steadily-declining dollar, etc.

      The old-me would call the new-me a loser.
    • P373Y, on 10/12/2007, -5/+21someone is missing a be.
    • neoform, on 10/12/2007, -5/+48Basic law should also be taught.

      How are we supposed to know our rights and duties if we're never told?
    • Blazeix, on 10/12/2007, -3/+8In my high school, you take economics and government, but not personal finance. It makes sense to take government, so you know about your rights. Economics, though, I'm not sure was useful. Most people can go through their lives and never need to know how to find the Average Total Cost curves of companies. IMO, they should replace economics with personal finance, or maybe combine them.
    • TheUngod, on 10/12/2007, -4/+8Agree with neoform. Law is one of the basic things our life revolves around. Ignorance of the law is no excuse for breaking it, so you best know it. Also maybe a politics course. I wonder how many people voted for GW out of ignorance of the issues of government?
    • GTPilot, on 10/12/2007, -6/+7"someone is missing a be."

      yeap, grammar being a required part of school obviously didn't help, so would personal finance classes really help?
    • GraceMolloy, on 10/12/2007, -3/+10Basic Accounting. OMG I wanted to murder my ex (no not really) over crap like this.

      Learn to Balance your Friggin' Checkbook!!!

      There is absolutely *No Excuse* for bouncing checks.
    • DryvBy, on 10/12/2007, -14/+4This is what my parents taught me. I'm 22 year old and bought my brand new 2nd car (without help from my parents). Thanks, parents, for teaching me to save!

      Maybe we should just teach parents to be parents instead of needing help with everything.
    • manitoba98xp, on 10/12/2007, -5/+4At my school we have a course called "Civics" which is supposed to teach us the basics of national law, our duties as citizens, etc, but there are three problems:

      1) Short course, lots to cover
      2) Not divided by academic stream, so targeted at "lowest common denominator"
      3) Students don't pay attention, and don't care.
    • Paroparo, on 10/12/2007, -3/+4It's great if lots of parents teach this stuff to their kids. The problem is that many parents can't/won't, and most kids don't care about this stuff before they have money of their own.

      The question is that should schooling be adjusted due to this? I sure believe it should, and apparently a lot of other people do as well.
    • InferiorWang, on 10/12/2007, -2/+16@DryvBy

      My parents taught me not to waste my money on brand new cars. You lose 15% of your money the minute you drive it off the lot.
    • Digitalicious, on 10/12/2007, -0/+13In my high school, I was fortunate to attend a class that dealt specifically on your own. It was offered to seniors only, and they called it Single Survival. In the course, we covered a lot of different aspects of living on your own. We studied job hunting, apartment hunting, lease agreements, personal finance such as account balancing, credit cards, check books, and so forth. It was a really fun course, and I feel like I'll use everything I've learned from it. At the tail end of the course, they also covered cooking on a budget, which was really fun. We actually got to cook. I think every school should offer a course like this, it's really helped me out.
    • qwickone, on 10/12/2007, -0/+4Parents just have to start earlier, when they still have a lot of influence over their kids thinking. If parents start giving their kids like $2 in allowance when theyre 3 and then taking away $1 to show them that it's going into savings, that kind of stuff sticks with you because youre so impressionable then. And if you're kind really wants a certain toy, they should buy that with their savings. Then they learn the value of money. Most of my friends got some kind of allowance through high school (and some in college for that matter). If you teach your kids to always put a certain amount in savings, they'll learn the lesson. Doesn't mean they'll always be savers, but they'll be a lot better off than most of the financially burdened population.
    • DryvBy, on 10/12/2007, -2/+10@inferiorwang

      That's if you care about reselling. I'm not. I'm keeping this car until it dies.
    • NoodleGuy, on 10/12/2007, -1/+2I think that just like many other things, this can't be limited to either the parents or the school system. Schools have a certain responsibility to their students to get the students ready for life in the real world. Personal finance is certainly something that most schools have the ability to teach without too much extra cost to them. Most Econ teachers should be qualified to teach it, so we just need a good curriculum and some scheduling changes.

      On the other hand, the school system can't be the only factor teaching this stuff. The parents have some responsibility to their children to teach them financial responsibility as well. However, it's important to realize that not every parent knows how to be financially responsible.

      Also, I disagree about High school students being poor as a rule. As I was living through my HS years, I didn't feel like I had any particular amount of money, but I realized that I was RICH in comparison to the money I had in College. I was working in HS but I didn't have ANY bills. No Credit Cards, No Rent/mortgage, no utilities, no groceries. Just about the only thing I had to pay for was related to my car, and even that wasn't a necessity. What did I spend my money on? Video Games, Fast food, and other piddly stuff. I went off to college, and all of a sudden I had to pay for food, rent, books, and tuition. I made the same money (if not more) at my job, but I sure didn't feel like it. Had I saved more in HS, I wouldn't have had the same problems in College.
      Granted, I was a middle class student, with a house over my head, and groceries in the fridge, and not everyone is as lucky as I was.
    • BESTenemy, on 10/12/2007, -3/+2 Concept of power and corruption should also be taught. The idea that education and fair choice work in an ideal world, but not in the real world. Like one of my high school teachers used to say: "It's not what you know, it's who you know."

      Lots of kids get disillusioned faced with unfairness of existence, cause they're taught utopian ideals that don't always apply.

      Kids should be taught that laws are created by the elite for preservation and protection of the higher class - the wealthy minority. "All people are created equal. Some more equal than others."

      "Animal Farm" and "1984" should be part of the curriculum.

      Personal finance and Economics should be taught, even if it's only a part of the Social Studies course. People should know that in reality budgets get eaten away by taxes, scams, extortion.

      Idea of investing? Hmm. I have a problem with that, especially when facing a potential economy crash. Public schools teach kids to put money into retirement and pension funds. Government telling people to invest into the government? No wonder. I have no faith in projected long term stability or into the monetary system. In fiat currency age inflation presents a hidden tax that continuously eats away savings. Government savings are a liability. Governments rise and fall, and monetary systems go along with them. Funds disappear, go unaccounted for.

      In school people are taught to trust in a system that presumes everyone guilty until proven innocent.

      Teach them an IRS course. How force is used to suppress and put fear into those that finance the establishment. Teach them about the FED and how only numbers that represent "majority" all start with dollar signs and that in reality that majority accounts for less than 1% of the population.
    • WhiteIce89, on 10/12/2007, -1/+16And the most important lesson of all: "DON'T BUY SH*T YOU CAN'T AFFORD"

      The single biggest financial problem facing this country.
    • sil5er, on 10/12/2007, -5/+5I would like to humbly suggest there are even more important basics, like:

      1/ the stuff we use everyday is NOT even money ... (do the study..)
      2/ fractional reserve banking is what creates all our money -- not printing presses. this is what devalues our currencies and leads to inflation.
      3/ our governements do not print our currency.
      4/ fiat currencies are based on DEBT. if all debt paid, currency collapses (do the study..).

      I believe life would go on, without money. I see it as a tool of control and an illusion causing pain and death.
    • jcm267, on 10/12/2007, -0/+6"high school kids don't have money"

      tell that to all the marketers who target them...

      They have money, be it from their own jobs or their parents. And they spend. They don't have the sense to save. If a 16 year old understood the power of compounding he might save a little bit for retirement...
    • d00ley, on 10/12/2007, -1/+7Our economy is driven by people not understanding personal finance. The corps will never allow an educated population.
    • maiku00, on 10/12/2007, -0/+2 I would have killed to have a class like that..
    • Shuk, on 10/12/2007, -0/+1I have been wanting to get into investing as of now. I'm 19 and people keep telling me to start young (buy now and HOLD), etc. Does anyone know a good forum for finance/business?
    • jkendel, on 10/12/2007, -2/+2@sil5er

      Your a moron, take a macroeconomics course and realize that "money" enables you to trade very easily. Without the concept of money you would require a "double coincidence" of wants to get any material object. That is you need to have exactly what the other person wants to be able to get your item, since everyone wants money the task is easy, if money didn't exist you would need to get what the person wanted to receive your goods. Not very efficient at all.

      If you want them to learn all four points you suggested, they would basically have learned 1/4 of a macroeconomics course.
    • Cerebral, on 10/12/2007, -0/+2I agree with the above people who said that we should teach basic law. It saddens me when I am in a store (any type) that employees kids and see/hear how badly some of these places (manager's on duty not necessarily the company) take away employee rights and the employees not knowing any better just go along with it like sheep.

      A basic law class that covers state and some local laws would be something that should be given in HS.
    • debtguru, on 10/11/2007, -0/+0I recently read a really interesting article myself about teens in debt - quite eye opening to think how young people are having to deal with debt
      http://news.bbc.co.uk/1/hi/business/6356065.stm

      I think that so much more can be done about debt through education and simple lifestyle changes like these too:
      http://www.debtadvicetrust.org/blog/tips-for-cheaper-living.html
  • ZogDog, on 10/12/2007, -4/+3I think if the proper techniques were placed, like say put in $20 this week and at the end of the week you'll get $25 dollars. Granted that's a huge return, it shows the kids what investing can do for tomorrow.
    • Mootabolife, on 10/12/2007, -0/+7America had a -2% savings last.. that's a negative 2% savings.. I think these classes might be a good idea...
    • maino82, on 10/12/2007, -4/+2If a 25% return on your money isn't a big return for you, I want the name of your financial planner.

      But seriously, I think this is a great idea. Personally, my dad did matching funds with me, so whatever I saved and put into my Roth IRA while I was in high school and college, he would match. I learned really quickly how that saved money can add up and after about a year into college I let him off the hook and just started saving on my own.

      Another friend of mine really wanted a car, so his parents gave him $3000 and a subscription to the WSJ and said that he could either spend $1000 on the car and put the rest toward school, or he could read his WSJ, and invest the money $1000 at a time and use whatever money he made to buy the car or whatever else he wanted. He blew through the 1st $1000, but after that he took the investing seriously and in the end got himself a really nice car.

      Finances should definitely be taught, but I don't know that it necessarily needs to be taught in school. Real-world finances have a much bigger impact on people than ficticious ones (if it's not your money, what motivation do you really have?).
    • sil5er, on 10/12/2007, -3/+2depositing 'money' in a bank account doesnt do anyone any good. in fact, its a real problem:

      with a one thousand dollar deposit, that bank CAN and DOES loan out almost one hundred thousand 'dollars'. This is simply made-up number, on a computer, and THIS is how our currencies are devalued (and then we get inflation).
    • maino82, on 10/12/2007, -1/+1I'm not talking about depositing money in a bank account. I'm talking about INVESTING. Stocks, bonds, mutual funds. Something that will benefit YOU, not the banks. The reason my friend blew through the first $1000 was because he invested poorly, and after that he learned from his mistake and actually took the time to research his investments and he made a profit. Again, I'll reiterate the fact that there's nothing more motivating about personal finances than LOOSING MONEY and if you don't feel that very real pain of loosing your own hard-earned money there's really no motivation to learn how to properly invest. That's why I stand by my belief that you can't properly teach investing in school.
  • pintomp3, on 10/12/2007, -4/+13i think the biggest opponents to this type of education would be the banking and credit card industries. their bread and butter is people who don't know how to manage their money. buy more, borrow more.
    • dcmjzero, on 10/12/2007, -5/+5not necessarily so: the best customers are those that borrow money and can pay it back. just passing out credit leads to financial ruin for bank/credit companies. stupid people are bad investments.
    • adml_shake, on 10/12/2007, -1/+11Why is he being dug down? You can't tell me the fat cats at the head of these companies would want something like this. These guys don't want responsible card holders, what they want are people who miss a few payments every now and then and have to pay all those late fees, or go over their limit from time to time so they have to pay those fee's as well.

      Maybe this should be a College senior required class.


      "not necessarily so: the best customers are those that borrow money and can pay it back. just passing out credit leads to financial ruin for bank/credit companies. stupid people are bad investments"

      Not really, if you go into collections on a card they WILL get their money from you. One way or the other. And you'll have to pay a huge amount of fees. They'll drag you through court and have your paycheck garnished, or auction off your stuff other then your house and car.
    • tech42er, on 10/12/2007, -0/+9Yeah, That might be true. It's like what they say about subprime loans: the lenders don't expect to be paid back; they expect the borrower to default and then the lender gets the house to sell.
    • qwickone, on 10/12/2007, -3/+7@adml

      In case you didnt know this, most credit cards that go into default are sold off to a collections company for a fraction of their actual value. For example, say you have 1000 in CC debt that's in collections, the CC company sells it to a collections agency for 800. So they just LOST 20% on you. A credit card company wants a customer that borrows (read:charges) a lot and pays their monthly minimum every month. I work at a bank. The VAST majority of our income is interest, NOT fees. And we like it that way. You realize how much money it costs for us to call you when your bill is past due? We WANT you to pay us.
    • eleventybillion, on 10/12/2007, -0/+10Actually the best customers are those who make the minimum payment on their balance for an extended period of time.
    • adml_shake, on 10/12/2007, -0/+2"@adml

      In case you didnt know this, most credit cards that go into default are sold off to a collections company for a fraction of their actual value. For example, say you have 1000 in CC debt that's in collections, the CC company sells it to a collections agency for 800. So they just LOST 20% on you. A credit card company wants a customer that borrows (read:charges) a lot and pays their monthly minimum every month. I work at a bank. The VAST majority of our income is interest, NOT fees. And we like it that way. You realize how much money it costs for us to call you when your bill is past due? We WANT you to pay us."


      You're a little mistaken there. The companies are usually on retainer (so to speak) by these companies. Once it gets to the point where they get the account it's always for the full amount. And then they add a "service" fee on top of that so not only is the collection agency getting it's share from the company that hired them, they are also getting a cut of what you are paying them. When you get a call from one of these collection companies and they say "We are willing to let you off the hook if you can give us 700 by the end of the month (off of a 1200 buck account), XXXXX just wants this matter resolved and are willing to let if go if you can pay that." some people pay it some dont. If you do pay it and think you're in the clear think again. They just put you on the back burner for a few years, then later you get a call out of no where saying that you owe 500 bucks to XXXX collection agency. And they start with all the legal threats again.

      I'm sure it does cost your bank to make those phone calls, and that you really do want to get the money from people. But make no mistake that they are losing a single penny by going after the people that don't pay.
  • jeffiek, on 10/12/2007, -1/+48Let's think this thing through. It's useful. It makes sense. It benefits the students. It doesn't require expensive lab equipment. It doesn't require a teacher with an advanced degree.

    It'll never happen.
    • creditdusters, on 03/24/2008, -0/+0You are so right. It makes too much sense and we wouldn't be able to create testing or an entire bureaucratic branch of the Federal Government.

      Good Stuff,

      Matt Sullivan, CEO of Credit Dusters
  • AngryRepublican, on 10/12/2007, -3/+29100% of People Believe Grammar Should a Required Part of School
    • Skrilla360, on 10/12/2007, -1/+2*English grammar
    • Dumbledorito, on 10/12/2007, -2/+14Plan for the future: Mandarin grammar. And punctuation classes for the both of you!
    • P373Y, on 10/12/2007, -4/+12How can the submitter of this article that stupid?!
    • tech42er, on 10/12/2007, -2/+1Most people already use Mandarin grammar ;)
  • nblsavage, on 10/12/2007, -5/+35I also think that credit card companies should be banned from college grounds.
    • expertninja, on 10/12/2007, -2/+15Free T-shirt with $5,000 debt! Act now on this amazing offer!
    • hiswarlockness, on 10/12/2007, -0/+12My campus does this, actually. But they made an exception for the "official on-campus bank", M&T Bank.

      Coincidentally, the president of my university is on the board of directors of this particular bank. Coincidentally.
    • killinger777, on 10/12/2007, -3/+6No thanks. Don't punish everyone because some people are retards. When I was in college I had a credit card and, like most people, I used it responsibly.
    • hiswarlockness, on 10/12/2007, -1/+7@killinger: He means the companies that market credit cards to irresponsible students, not a ban on credit card use.
    • nblsavage, on 10/12/2007, -2/+1Well, crap, digg this down, hiswarlockness beat me to it :)
    • scispaz, on 10/12/2007, -0/+2Go to a top tech school freshman week and you will see some of the saddest credit card hawkers in the world. They are not used to students asking about APR and then turning down a lame T-shirt because they don't want to deal with the bs or a card with an APR of 21%.
    • dudad, on 10/12/2007, -1/+1Actually... my first credit cards were from on campus credit card companies. They had 0% APR for the first six months which was useful while I waited for my student loans. Freshman student loans require that you attend 2 months of school before you receive them. I'm not sure I could've paid for that year of school any other way.
  • Dumbledorito, on 10/12/2007, -0/+19Add to this "how to be a parent," "how to do simple home maintenance" and "how to cook a meal that doesn't involve potato chips," and we'll be better off as a nation.
  • laudyms, on 10/12/2007, -2/+1010 % don't want it taught because they are benefiting from predatory loan practices etc. and they think most of us are domesticated animals anyway.
  • brink668, on 10/12/2007, -1/+8life resolves around money period end of story ... why don't they teach it???
  • Philodox, on 10/12/2007, -1/+2One my strongest memories from high school was an example in Gr. 12 math where the teacher showed the difference in total interest vs having bimonthly and monthly loan payments (hint: bimonthly saves you a ton of money). I can't remember the exact amount but it was enough to make me stop drawing on my desk and go "hmm... better remember this for the future"

    • iamnos, on 10/12/2007, -0/+2Go to any bank site and look at their mortgage calculators. My wife and I just purchased a new home (well, new to us) and the amount we're mortgaging is about $265,000. We'll be paying "accelerated biweekly", which means every two weeks, or 26 payments per year. Over a traditional monthly payment, we'll save around $35,000 and pay it off almost 4 years earlier.
    • BlackAle, on 10/12/2007, -1/+1All the personal loans I've had in the past, charge interest on the outstanding amount, so the more often the payments, the better.
    • ArmyOfFun, on 10/12/2007, -3/+3One of my strongest memories in HS is when this kid sitting two rows over got punched in the face for no reason and a smokin' hot cheerleader (in her cheerleader uniform) bent over right next me to help him. I also remember a really windy day when the bottom of a shortish dress flew upwards on this girl that I was walking behind.

      I don't remember anything about this i-n-t-e-r-e-s-t you speak of. Is that on the internet?
  • Zreitan, on 10/12/2007, -5/+4you're parents should teach you how to save money...

    what needs to be taught in schools more then personal finance is critical thinking skills. If we taught that all of these issues would solve themselves.
    • Skrilla360, on 10/12/2007, -2/+5go back to grammar class first buddy
    • fujiyama17, on 10/12/2007, -1/+3@ zreitan

      I disagree. Critical thinking skills are necessary, but I think that personal finance has some essential areas that crit. skills does not.
    • Zreitan, on 10/12/2007, -2/+3*****... i know the difference between your and you're i swear!... im at work so im not paying much attention.
    • scispaz, on 10/12/2007, -2/+1Did work break your shift key as well?
    • eleventybillion, on 10/12/2007, -0/+0How can parents teach what national debt statistics have shown they do not themselves understand?
    • sil5er, on 10/12/2007, -0/+2no, parents should teach about Fraction Reserve banking system.

      in that way, people dont make the mistake of putting saving into bank accounts, and thereby avoid wrecking economies.

      how come I dont see any others posting about the Fractional Reserve banking system ... anyone?!?!?
  • fujiyama17, on 10/12/2007, -1/+6I want to know how many teachers are available who really understand personal finance... I just can't see a kid learning much from a teacher who is swimming in debt.

    Just playing devil's advocate. I firmly believe that this would be very beneficial to any economy/people.
  • guypeters, on 10/12/2007, -2/+1AMEN to this topic. If only i was informed of the responsibility and dangers of plastic I wouldn't be in so much debt.
  • SilentSpyder, on 10/12/2007, -1/+4This definitely needs to be though in the inner city. My parents are immigrants but they always to taught me to save in the bank. On the other hand I feel like I'm missing out when it comes to stocks, bonds, mutual funds, and all that type of stuff I hear white people talking about.
  • lichme5000, on 10/12/2007, -2/+1...the remaining 10% are dead.
  • Fhionnlaoch, on 10/12/2007, -2/+1If people didn't go into debt, they wouldn't be able to purchase items which increase their standard of living. This would make them unhappy and would increase social discord, which would only be fixed by a massive transfer of wealth away from the wealthy (since it is so concentrated with such few people).

    The powers that be would rather everyone keep on consuming without thinking. Not only does this benefit the rich by avoiding social discord, but it also makes the rich richer since most of the population is in debt to a richer person.

  • OYAHHH, on 10/12/2007, -1/+7For me,

    It stunk. As a senior in high school I was forced to take a personal finance class. There the teacher taught writing a check, etc.

    What class did I miss? I wasn't able to take trig because I was forced to spend a hour writing fake checks, etc.

    Don't so blindly automatically assume that a good idea is a good idea. Your good idea held me back.

    • SilentSpyder, on 10/12/2007, -4/+3I think writing checks is used more in the real world than whatever you do in trig. Unless you're going to become an engineer or scientist.
    • eleventybillion, on 10/12/2007, -0/+1That may be, but it doesn't help you get an edge for college math courses. It should be an elective.
    • sparrowkc, on 10/12/2007, -0/+2Same here only a Junior...
      I have all A's, yet I'm stuck with summer school as my only option because of:
      1) I need a credit of personal finance to graduate
      2) I need a credit of Health (AIDS) class to graduate
      3) I need a credit of physical education to graduate

      My school is a place where all things that "should be taught in schools", are. As a result, 26 of my possible 30 credits are already decided upon for me. I am planning on taking an off campus electronics class, and because of lost travel time, I have had ONE hour to choose an elective that interests me in my highschool career.


      In conclusion, I am proud to be part of the 10% .
  • beguiledfoil, on 10/12/2007, -0/+11Count me among the 10%. Personal Finance isn't ***** rocket science, force people to learn some basic math skills and think critically and you'll solve this problem and a myriad of other issues facing society.

    I was talking to a coworker about this the other day, he was going off about how so much of school is a waste of time and they should teach practical skills, like how to do your taxes, etc. I thought that was *****, school doesn't need to teach you how to follow instructions it needs to teach you how to become a member of a modern society. The latter is far more difficult than the former, and I consider it the root cause of many of socities troubles.

    The inability to manage ones own moneys is just one symptom. You can treat it explicitly, but people will find some other way to ***** up their lives.
    • Zreitan, on 10/12/2007, -2/+4i agree with you...

      if critical thinking was taught, many of todays problems would be solved, or at least lessened as youd have a lot less stupid people running around.
  • rootbat, on 10/12/2007, -1/+6OMFG I was just talking to my friend about this.
    Basic personal finance needs to be taught, as well as investing AND Small business finance would be great

    want a really neat one TAX LAW!?!?! I learned calc, and when do i use that??? only when plotting a course... thats it... statistics prolly woulda been better.
    • dudad, on 10/12/2007, -1/+1A lot of financial equations can be derived from calculus. The rate of change (interest) of your debt is proportional to your debt. In finance, you learn the equations. In calculus, you learn to create the equations.
  • siszam, on 10/12/2007, -1/+8The problem is, schools would teach that debt is a tool and that everyone has debt. My sons teacher tried to tell the kids that everyone has debt and it's no big deal. As a family who doesn't believe in debt and has paid cash for our assets, we were greatly offended that a teacher would say you can't live debt free. Finances should be taught if opinions don't replace facts. I don't think that can be done though. Too many people have been brainwashed by credit card companies and their inability to live on their income. Do you really want a poor person or a person in debt to teach your children about money?
    Financial Peace University by Dave Ramsey should be taught in schools.
    • GraceMolloy, on 10/12/2007, -2/+6eh ... it's the difference of knowing *how* to use debt. Like with credit cards. There's no interest *IF* you pay the freakin' things. Too many people think they're a license to spend money they don't have. But used effectively, they're a wonderful tool for consumers.
    • tech42er, on 10/12/2007, -3/+2Actually, debt IS a tool and can be used very well. You can also live a debt free existence that's safest, but it's not the best.
    • mrtroy32, on 10/12/2007, -1/+5"Financial Peace University by Dave Ramsey should be taught in schools."
      He has a high school curriculum that is taught in some schools, but not nearly enough.
      http://www.daveramsey.com/hope/youth/
    • billyoneal, on 10/12/2007, -2/+1Also, a longer mortgage is a better idea right now, because the market's rate of return, on average, is higher than that of the interest rate. People see that they could save a ton of money by going with "accelerated" loans, but they don't realize that they lose the income earning potential of that money when they hand it over to the bank.

      In this case, a mortgage is GOOD debt, because of its relatively low interest rate. Credit cards are useless for this though.
    • kigabit, on 10/12/2007, -2/+1Debt can be an important part of your own personal capital structure... but only if you use it in the same way corporations do: to make an investment that will get you a higher rate of return than the interest you're paying on your borrowing. As an example, you might choose to hold a short position on a stock or otherwise invest using margin. It is true, though, that financing using debt is usually riskier than equity.
    • Envark, on 10/12/2007, -2/+0Dave Ramsey is a cult.
      Debt is not inherently evil.
    • siszam, on 10/12/2007, -0/+3Dave Ramsey is a cult? lmao. Yeah, right. A cult of rich people or people who will survive the next economic depression. If you use debt and the world falls apart, the bank and other debtors come get everything you have. You might not even have a house or a car to sleep in.
      I will have a paid for house, car, furniture, a savings account, etc. I will make it years without having to work while you will be homeless and penniless in what........one month, six months? Why? I refused to be a slave to risk and debt. Come on. Do you really want to live on the edge of a cliff for the rest of your life? That's not smart. That's sad.
      While you say, "I owe, I owe, it's off to work I go", I'm saying, "It's off to work I go so my bank account can grow". A credit card is only a tool for credit card companies to take your money. Guess how much interest I paid last year. ZERO. My risk was zero also. So if that's a cult then honey, pass the kool aid.
  • StringyLow, on 10/12/2007, -2/+1I can't see any downside to teaching this is school.
  • ravi7791, on 10/12/2007, -1/+1I'm taking "personal consumer finance" right now. We meet twice per 7 days. It's basically a common sense question (e.g: getting jobs, ways people are paid [comission, hourly, etc], etc).
  • fredrated, on 10/12/2007, -0/+7"Personal Finance Should a Required Part of School"

    Writing should a required part of school, also!
  • Cougarcat, on 10/12/2007, -1/+2In my school district, we were forced to take 3 health classes in middle school, followed by another useless one in high school. I don't need 3 courses to learn that drugs and smoking is bad. I really wish I could have taken a finance course instead.
  • UncleCrapper, on 10/12/2007, -0/+3It is, in British Columbia. You must take and pass the Consumer Education 10 course before you can graduate. We studied all aspects of personal finance from reconciliation of chequing accounts to the stock market and compound interest. As someone noted in this thread, however, a lot of kids really didn't listen because teenagers either only have just enough money to buy what they want or no money at all. Once you get out of college and actually find a paying job that leaves you with enough income for discretionary spending, that's when personal finance skills only seem essential to a lot of people. Those skills should have been well developed by that point.

    And I completely agree with the sentiments that credit card companies should be not permitted to advertise or solicit on university or college campuses.
  • krached, on 10/12/2007, -0/+5I think they should start by teaching the teachers how to add and subtract.
  • monkeyrun, on 10/12/2007, -0/+17Lesson 1: Do not spend more than you make.
    Lesson 2: Spend less than what you make.
    Lesson 3: do not spend 10 thousand a month just because your credit limit allows you to.
    Lesson 4: Pay off your credit card.
    • diggerphelps, on 10/12/2007, -3/+5Oh my God, you killed our economy!
      You bastards!
    • jull1234, on 10/12/2007, -1/+7Sir, an economy based on credit card debt isn't really awesome. (damn you congress).
    • sil5er, on 10/12/2007, -1/+1any economy based on Fractional Reserve banking system is doomed to failure, via currency devaluation.

      anyone got a better way to empty someones personal safe or bank account, without touching it? inflation/devaluation does it nicely, right...?
  • KillyKillall, on 10/12/2007, -6/+1Way to kill grammer... Anyone else notice that in the story it was 89% but the title is 90%? Looks like this guy didn't learn grammer or math in school.
    • manitoba98xp, on 10/12/2007, -1/+6That's called ROUNDING. It's this magical little thing that lets us make numbers simpler so that they are easier to say and remember. Do you really think that the true number was exactly eighty-nine percent?

      Didn't think so.
    • scispaz, on 10/12/2007, -0/+2The bigger problem is where the numbers come from. People doing survey on a tiny financial planning blog are more likely to feel that way than the general population.
  • 500freestyle, on 10/12/2007, -2/+2In Indiana Econ is mandatory to graduate high school.
  • dblespresso, on 10/12/2007, -5/+4Yes, but it goes against the NANY state/quasi socialist ideals that embody the "progressive" education system. We cant teach any self sufficientcy, it is the governments job to take care of us

    dug down in 3,2,1
  • blkhwk86, on 10/12/2007, -0/+2I think the parents need to show their kids how to spend money and save. But then some of them haven't even done it themselves. Parents throw money at their kids and pay all of their bills. I have a lot of money in college loans, but i have no balance on my credit card, haven't paid my cell phone late, and can pay all of my other bills on time. If personal finance is taught in school, will it make an effect? My answer is no. It will not make an effect. Economics was my "psuedo-personal finance class" and taught me all about the markets and what to and not to do when it comes to investments. Even today, i go into Starbucks with kids who are druggies/CC dropouts and i took the same class with. I find out they are swirling in debt from credit cards and wonder how I am able to go to the UK for a week and still pay all of my bills on time and have no credit card debt. It depends on the kid who takes it and if they are or are not motivated. Most high schoolers in suburbia are grown up with mom and dad helping them out and not pushing them enough to show some self credibility.
  • gonpost, on 10/12/2007, -0/+2I know this might sound odd...but playing an MMO has really given me an appreciation for investing as a kid. I've gotten rich (in the game) because I've invested long term in "rares" in a game called runescape. It makes things easy to parallel in real life such as buying vs renting a house, buying cars which depreciate, etc. Granted it sounds basic, but there are some idiots my age who still have no clue...

    But to be honest, kids wouldn't need a class (or an MMO) if parents just taught them some common sense early on.
  • diggerphelps, on 10/12/2007, -0/+3The problem isn't necessarily that people don't know these common sense axioms, it's mostly that they ignore them.
    After all, the neighbors drive new BMWs every two, take cruise vacations and have a plasma TV, they must be doing something right.

    Criminals KNOW what they're doing is wrong, but the jails are full of guys who thought they would be the one who gets away with it.
  • Homerr, on 10/12/2007, -2/+1My high-school had something like this 18 years ago when I went there, but it was for all the stoners and losers to take so they could get an easy A to graduate.
  • Sakk, on 10/12/2007, -0/+0Of course personal finance should be taught to kids. Why the hell anyone would want our schools, which churn out retards at a pace only eclipsed by the amount of shrimp eaten by a sperm whale, to teach personal finance is beyond me.

    Think about it, policy makers that have no idea how to balance their own books are going to teach us how to balance ours? Sorry, don't think so.
  • jull1234, on 10/12/2007, -1/+2I think this used to be called "an allowance". I know I learned pretty quick that if I spent all my $5 a week on candy that I couldn't buy any awesome Legos. People should be learning this stuff a few years before high school.
    • BESTenemy, on 10/12/2007, -0/+2 Controlling allowance is the best method of teaching kids finance. Giving them $10 taking $5 back off the bat and another $4 over the period between allowances in form of allowance taxes. Failure to return portion of the allowance should result in detention and possible interrogation at gunpoint. Kids spending should be audited every few years as far back as the day they were born.

      Oh yeah! Recollection of allowance money works best when done by neighbors hired to do the job with money collected through the allowance tax... just to make it more realistic. And don't forget to buy them IRS T-shirts. Kids will love ya!
  • vangogh71, on 10/12/2007, -1/+2As a Financial Adviser I agree definitely that personal finance should be taught in schools. I am however surprised that the younger generation (18-24) on the most part seem to be more savvy, seem to have clearer goals and begin planning sooner than their parents. I deal with a large cross section of individuals and I see many in their early 50s with no Retirement savings. I guess the younger generation maybe realizes they won't have a company pension or medical benefits etc. I also see that those just starting families even start saving for their kids education sooner as they realize that education is so important to being successful today and tomorrow.
    • sil5er, on 10/12/2007, -0/+2then you will know about CAFR (Comprehensive Annual Financial Returns), right?
      and also about Fractional Reserve banking system, right?

      how come you arent sharing info about these problems with us all? hmmmmmmmmm.

      I strongly urge anyone at all interested in the many illusions related to money to check these two things out, at least.
  • Hellmark, on 10/12/2007, -0/+1Uhm, where I went to school, in middle school, there were required classes on financing. Plus, it was always worked into other classes in both middle school and high school.
  • Morelia, on 10/12/2007, -0/+1The whole base (non elective) curriculum needs to be updated at most schools. Not just personal finance, but also general communication skills; facilitation and negotiation skills, group dynamics; self- and peer-counseling for healthier psychiatric maintenance; sex education, diversity education; career selection; reading, writing and speaking skills, and on and on.

    Part of the problem is conservative interests that don't want progressive (ie. updated) school programs because they tend to result in students that are better critical thinkers and rationalizers (a threat to faith-based and other control systems). I have participated in school reform programs and the most vocal ones that are always trying to keep programs from advancing are usually parents that serve as mouthpieces for organized religion. Many of them do homeschooling for that very reason, especially for their female children to keep them domicile. The last thing they want them to know is how to maintain their own personal finances ... that would lead to thoughts of independence, a bunch of Mary Tyler Moores running around.

    Another part is that teachers and administrators need to better motivate students with relevant and interesting tasks that are of benefit to them. Teachers that simply give oral presentations at the front of the class demotivate students.
    • Morelia, on 10/12/2007, -0/+1Another point ... it isn't just the parents that serve as mouthpieces, it is often a very solid school administration that has been quietly and clandestinely jockeying church members into key school board and other decision making positions until they reach a critical mass and can shape school programs to align better with religious beliefs. Call it conspiracy theory if you will, but it indeed happens!
  • RedStateRetard, on 10/12/2007, -0/+2One of the textbooks for the class should be The Millionaire Next Door by Thomas J. Stanley, William D. Danko.

    The examples in that book should be good counterpoint to the mass media portrayal of rich ppl, (Donald Trump, professional athletes, top tier actors and music moguls.)

    It teaches the aforementioned: live below your means, stop keeping up with the Jones, etc...

    P.S. A supplement to the course should be: Innumeracy: Mathematical Illiteracy and Its Consequences by by John Allen Paulos
  • Smeed, on 10/12/2007, -0/+1My highschool cut stuff like this so they could focus on making money. Now that they got rid of all of the practical classes they are crying because they may not make accreditation (most colleges just toss your application in the garbage if you dont come from an accredited high school.
  • Timis, on 10/12/2007, -0/+0Actually this topic comes at a great time. I am looking for ideas/curricula for a finance class I will be teaching at a private school next year. Our upper school teachers all agreed that a personal finance and accounting class would be benefit all those that take it.
  • waterboy1628, on 10/12/2007, -0/+1I will be graduating in June this year. I currently take 3 AP classes.
    But I don't know how to balance a checking acccount, and I have no clue how to do taxes.
    • bacon_skoda, on 10/12/2007, -0/+1taxes for you just means reading.
      it's probably going to be 1040EZ and it can't be any simpler.
      you can fill it out with crayon with the big boxes they give you.
  • smergs, on 10/12/2007, -0/+1I just wish we had learned how to do our taxes in high school. To me it seems like one of the basic things that should be taught because everyone has to do their taxes every tax season. Most people are scared to even think about doing their own taxes because they don't know where to start. Lucky for me my wife's dad used to be a CPA and did our taxes for us this year. As newly weds I'd like to learn to do them myself before next year so they don't always know how much money we have/don't have though.
  • ultrahombre, on 10/12/2007, -0/+1I wonder what reasoning the other 10% provided.
    • Morelia, on 10/12/2007, -0/+0Probably that those topics should be taught at home or not all all because they do not serve special interests.
    • Depthfunction, on 10/12/2007, -0/+1The other 10% probably thought that since credit cards aren't in the bible, they have no place in schools. A personal finance class would compete with bible study class.
  • my10cent, on 10/12/2007, -0/+0I think it is your parents responsibility to teach you about Finances, my mom put me in charge of the grocery account from I was 13, she told me as long as I bought everything on the list I could keep the rest, that taught me to hunt for bargains and sales.

    now I am poor and in debt, but thats another story :)
  • MVP6100, on 10/12/2007, -0/+1Yeah school is screwed up, I think they should have a class on ACT/SAT preparation.
  • sonstone, on 10/12/2007, -1/+1And so should English...
  • DeathStarr, on 10/12/2007, -0/+1Personal Finance is required to graduate from my school... I guess we're ahead of the crowd.. and we've only got a K-12 student body of around 1200.
  • maanwi, on 10/12/2007, -0/+0It seems like we put kids through 12 years of education to prepare them for life in the real world, so it would be apropos to teach personal finance. It's a hell of a lot more relevant than PE. I never learned anything in PE, and the "teachers" never attempted to teach anything; it was really a forced physical activity period - playing football or baseball or whichever sport they were peddling at the time.
    • Kaglan, on 10/12/2007, -0/+1I didn't learn anything in PE either, but maybe ''forced physical activity period' is not a bad idea. Kids are overweight. But I have to admit... maybe it's me who needs a forced physical activity period.
  • Fetching more discussions...
    Show 51 - 66 of 66 discussions
  •  

    Login or register to add a comment

    Create a new account or login to join in the conversation on Digg. You'll also be able to Digg stories to help promote things you like.


© Digg Inc. 2008 — Content posted by Digg users is dedicated to the public domain.
DIGG, DIGG IT, DUGG, DIGG THIS, Digg graphics, logos, designs, page headers, button icons, scripts, and other service names are the trademarks of Digg Inc.