WHY “PERSONAL FINANCE 101” SHOULD BE A REQUIRED COURSE |
By Stewart Pelto on July 28, 2010
.jpg.aspx) Universities have long had the responsibility of helping their students find employment and income. Now that many Americans have seen how their own financial illiteracy has contributed to the recent economic downturn, it is only a short leap to ask that these universities also teach their students how to manage the wealth their education provides.
Universities like Kansas State, California State-Chico, and Wellesley College in Massachusetts are now offering personal finance courses to the great benefit of their students. Wellesley’s course goes into such depth as to analyze pay stubs and explain COBRA health care policies. These new classes aim to prepare a younger generation of Americans to avoid the financial pitfalls their parents could not.
Strong legislation should be enacted to ensure the spread of this new educational phenomenon. In some states it’s already in place. The Kansas Department of Education now requires personal finance lessons to be taught alongside consumer education and math courses, effectively spreading their university’s initiatives to its K-12 schools. Their goal is to teach students how to budget and invest their money wisely so they aren’t forced to learn it the hard way once they’re on their own.
At the time of writing, six other states have similar legislation in place. Many parents support this genre of school-driven financial education because children aren’t likely to confront these problems during their free time (which is dedicated to consuming some form of media that usually promotes reckless spending on luxury items). Some adults still reeling from their own mistakes don’t even feel qualified to speak on the subject with their kids. Starting the financial conversation at school makes it easier for parents to continue at home.
The cooperation of schools and universities nationwide in this matter is indispensable. K-12 teachers have been asked to squeeze financial courses into their busy day and can only focus on the basics: don’t spend more than you earn and be sure to save and invest. Universities broaden that knowledge base by offering in-depth semester-long courses. With time, students will learn how to get a job, a paycheck, and a plan of financial action.
|
Current Rating: 0 (0 ratings)