By
Alexander Carl on January 12, 2011
The school-age years are the most formative period of our lives— they’re when we learn how to interact with the world. Thus, our education system tries to send positive, socially productive messages to its students.
Other messages can be picked up at home, from friends, and from the most commercially nefarious influence of all… television.
Remember the 90s commercials that explained how “there are some things money can’t buy. For everything else, there’s Master Card”?
That’s a lesson right there:
Any expense can be put on a charge card. With no apparent consequence.
Usually the school system tries to counter these commercialized messages of greed and selfishness by promoting counter-values, like sharing and cooperation. But when it comes to finance, their message is clear:
…
Nothing.
There is a void, and I think schools need to fill it wisely.
Thomas Jefferson pointed out that democracy only works if the populace is educated enough to make an informed decision. The same could be applied to capitalism.
It is true— economics is taught in high school, and God only knows how many MBA graduate schools exist in this country. But economic theory and the mechanics of generating capital are not the same as fiscal critical thinking.
The financial crisis of 2008-2009 showed the world that even
professional investors can be as misinformed and reckless as a typical teenager. Someone earlier in life must not have been doing their job…
But could teaching fiscal competence hurt the economy? Would it encourage less spending?
Consumers who navigate the allure of consumption are far more economically productive than those who rack up thousands in credit card debt, have homes foreclosed on, etc.
Their trick is to
build income instead of
spending it. When financial advice comes from commercials, it’s easy to believe that the goal of money is to buy,
buy, BUY!
And the earlier literacy is taught, the better. If the messages of saving and delayed gratification begin in Kindergarten, by 12
th Grade ideas as radical as “contribute to your Roth IRA!” won’t appear to come from Mars.
Everyone loves to talk about protecting our children’s future. I can’t think of a better way than teaching them finance.