Why Young People Get in Debt Before They Know Why
Many people think that high schools should offer classes that better prepare young people for their future. Too many students are graduating without understanding the basics of banking, loans, credit, or even how to write a check. This can lead to problems with finances early in life that takes years to correct. Young people are bombarded with credit card offers before they can understand interest rates. Several educators believe the only way to correct this is to focus on learning these things in high school as a mandatory class. In a report by USNews.com, entitled “Why Most High Schoolers Don’t Know How to Manage Their Money“, Daniel Bortz explains that high schools require technology credits and math credits but do not teach students how to use information from these classes to understand financing needed technology for college.
How High Schools Can Teach Money Matters
High schools need to require a financial literacy curriculum for a graduation requirement. The curriculum needs to teach students how to open and manage a checkbook. They need to learn about online banking and how to pay bills using this technology. Part of the curriculum will teach credit dos and don’ts, buying cars, and about credit cards. Students will leave the class understanding how interest rates affect payments and long-term paybacks. Students should leave this class with the knowledge to fill out their own financial aid applications for college or job applications if they do not want to go to college.
Teach Students How to Read a Paycheck
Many young people struggle with the idea of money. They do not understand that when they make a wage then they will not get every penny earned. They do not consider that they will have federal and state taxes and several other deductions to their paycheck. Young … Continue reading >>>