While teachers do not receive training to teach children and teens about money matters and how to spend wisely, this is a skill that everyone should learn at a young age if they want to make smart financial decisions in the future. Here are some of the many reasons why the youth should be educated on finances and the economy before they are old enough to apply for credit or open a bank account.
The Youth Has Little Understanding of Economics
Based on surveys that were completed by the Jumpstart Coalition for Financial Literacy, kids and teens have little understanding of economics, finance, credit and borrowing terms. When a teen turns 18 and they begin to receive offers to apply for credit in the mail, they do not know how the interest builds up and how minimum payments can cost them over time. By teaching kids young, they will be equipped with the knowledge that they need to make smarter financial decisions early in adulthood.
There Are More Debt Options Than Ever
More and more credit card companies are offering high interest cards or student loans than ever. This is a market where creditors and banks stand to earn a great deal of money. With more lenient agreements between students and lenders making it easier than ever for young adults to get into debt before graduating, there is a greater need for education.
The Average Person is Saving At a Younger Age
The later you wait to start saving for retirement, the less money that you will have to live off of when you retire. The statistics show that a majority of kids today are starting to save later than their parents did, and that these same individuals do not find stable employment until their 30’s. Stressing the importance of saving and investing savings in the right financial vehicles will help people build the nest eggs that they need to live off of.
Borrowers Are Filing Bankruptcy Younger Than Ever
According to experts in bankruptcy filings, more young adults are filing bankruptcy than ever before. Debt from credit cards, student loans, medical bills and other forms of credit can add up. When kids receive financial education, they can travel a road to financial security and not bankruptcy.
Educating kids about money is very important. While money matters were once considered personal, more and more financial experts agree that courses on literacy should be written into school curriculum. This can help the youth today be responsible with finances tomorrow.
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