Personal Finance and the Education system:
Why is personal finance not taught in the education system and public schools? More and more people are struggling to understand simple personal finance topics, and this is a symptom of our education system failing to meet the needs of the people. The Great Recession was a outcome of many people not understanding basic concepts (as well as mania in the housing market).
If everyone was required to take a personal finance class in high school which included basic budget, finances, understanding debt and credit cards, savings, investing, buying a home, etc. this country might be better off. Even if 20% of the material covered was absorbed by students, it would be worth the investment.
More and more people around my age, I speak with are so uncomfortable discussing money, savings, investing it is sometimes embarrassing. Sometimes these are even well educated people, but the system hasn’t provided them with the skills to understand basic concepts and they haven’t made it their mission to research these topics.
In today’s shared economy and rental society, it is important for the next generation to understand the value of assets, how to value them, the benefits of ownership vs. sharing, and how to avoid destructive leverage and/or debt.
For those of you who like to learn at the “School of Hard Knocks”, I can tell you from listening to friends with personal experience, the excessive credit card debt in early twenties is a lesson that is quite expensive if not learned quickly. It will also have long term effects on things like net worth, credit score, etc.
Maybe there is a reason the system is designed to keep people with low competence when it comes to personal finance. But for those of you who are yearning to learn more, I will offer a list of personal finance books to follow.