Comments on: Helping students learn about personal finance

By: Dennis Kennedy’s Links of the Week - March 30, 2008 IP Down Under

Dennis Kennedy’s Links of the Week - March 30, 2008 IP Down Under — Sun, 18 May 2008 05:15:48 +0000

[...] Helping Students Learn About Personal Finance [...]

By: Wesley Fryer

Wesley Fryer — Wed, 02 Apr 2008 03:00:17 +0000

I have taken the “Financial Peace” course which Dave Ramsey has offered and I think it is excellent. I agree building wealth can be a very good thing– money is value neutral. The Good Book reminds us that the love of money is the root of all evil, not money itself. Lots of folks have and continue to do wonderful things with their wealth to help others.

By: Joel Zehring

Joel Zehring — Wed, 02 Apr 2008 00:10:48 +0000

Dave Ramsey has a curriculum for high school students promoting his principles. Building wealth doesn’t have to be a selfish pursuit; it can be one of the best ways to help others.

By: Emily

Emily — Tue, 01 Apr 2008 04:19:10 +0000

I agree that learning about personal finances is important to learn in school. It is a great opportunity to teach about life lessons. The only issue that I have with it is that it is being taught at a young age. In middle school it is important to teach about the value of money, but learning about actual finance decisions shouldn’t be taught at that young of age. It would make more sense if it was taught in the high school level before students are entering into the “real world.” I remember learning how to file taxes in middle school and I do not remember much about it except that the form was confusing. It would have been more beneficial if I learned it in high school. Students at a middle school age are too young to truly appreciate the knowledge of taxes, debt or financial decisions.

By: Wesley Fryer

Wesley Fryer — Sun, 30 Mar 2008 14:54:37 +0000

Charlie: We certainly need to change some of our ways in the U.S., and our average savings rate is clearly one area that needs drastic improvement.

Tami: I think financial management skills certainly are an important 21st century skill. We’ve always needed good money management skills, so it could be debated whether this is a “new” skill or not, but clearly we DO need this skill regardless of our age following high school, and really even in high school and collage. Credit card marketers start earlier and earlier with those free t-shirt giveaways. Trying to counterbalance that message of “get credit now and use it” seems a bit similar to advocating for open source software options. You don’t usually see booths in the vendor halls of conferences advocating for open source solutions, just as we don’t see ads in the marketplace sharing messages counter to the general consumerist mantra.

By: Tami Brass

Tami Brass — Sun, 30 Mar 2008 13:29:23 +0000

As a child of the ’80s, I recall having to take an economics class in high school which turned out to be a WWII era teacher trying to impart the wonders of capitalism (I recall him saying that Social Security would lead to Communism!) that seemed to conflict with what my home ec teachers were teaching - basic thrift, living below your means, and putting off immediate gratification for a brighter future. In a small town where the only “good” jobs were in a paper mill, a metal fabrication plant, and a sewing factory (my choice until I’d saved enough for college), it was hard to think of the future.

20 years later, I return to the town every couple of months amazed how many of the kids I graduate with still don’t own homes but manage to drive new cars. It’s startling to see pawn shops have replaced coffee shops and finance companies have replaced small businesses. It’s pretty clear who listened to the home ec teachers and who listened to “Econ John” as we called him.

For my own daughters, I know their schools don’t teach personal finance, as much as I’d love them to hear it from someone in addition to their parents. Our approach so far is a balance of media literacy (reminding kids that almost everything in stores, on TV/radio, in print, and online is geared to get them to spend) and limiting exposure to the advertising in an age-appropriate manner. That with model, model, model seems to be fine for elementary school and earlier, but with those adolescent years looming, I appreciate the resources you share. As a middle school teacher, I’m hoping to find ideas I can incorporate into my practice as well. Might personal financial health be a 21st Century Skill?

By: Charlie Roy

Charlie Roy — Sun, 30 Mar 2008 12:33:47 +0000

@WES
As a former options trader and as a principal with a side habit of investing and trading I think your post is incredibly relevant. I work mostly with economically advantaged children who do not understand the value of saving money. I work with families everyday who live far beyond their means on credit cards and by sapping equity out of their homes. The day of reckoning is fast approaching. This past summer and fall are only a hint of the downturn ahead.

When Japan hit a credit crunch it took ten years to come out of the cycle. Keep in mind that the average Japanese family was throwing money into savings every month. The savings rate in America is 1%. It might take us a little longer to turn the corner.