Financial literacy is not an educational priority in the United States. In fact, only three states require one full semester class on personal finance in high school. Do you know which states those are?
The fact is that teens need information. While one in three have a summer job, more than 80% do not have a checking account which means that most do not know how to balance a checkbook.
Teens are not alone though. Some 47% of adults say that stress over their finances make them sleep less. I’m not surprised, because I have been there. But all isn’t loss though, Americans have reduced their spending every year for the past four years.
Check out the infographic below for more insights on American and their money.
Source: Dollars and Sense: How Wise Are We With Money?
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That’s an interesting infographic. Barganeering recently had a counterpoint article, citing the limits/ineffectiveness of financial literacy efforts.
http://www.bargaineering.com/articles/financial-education-work.html
Teaching people what’s important and where to go to find more info is the key in my POV.
It’s what Jean Chatzky stated just in time education.
It fascinates me how young people are uneducated about money. Maybe they need more of such lectures at school? Or maybe just more motivation? As I see it, the word budgeting itself is a scary term if you had never done it before, I think there should be something done about introducing basics of finances to teens and youngsters – looks like their parents will not be of much help (according to this infographic).
Their parents are not really that much better. I wonder if WE are not educated enough to educate our children.
Some of the stats are simply shocking. Two-thirds of adults operate without a budget…now wonder they can’t save and worry about their long term savings plans.
I’d say more teens need to be exposed to the work environment as early as possible…money reality might sink in when they have to work so hard for it and probably produce more financially responsible adults.
Nip the problem at the bud.
It goes to show you the difference of the spending habits of the rich compared to the average individual. It is easy to see how much education and investing influence their decisions.
What needs to happen is that courses in high school should have monetary components added in the curriculum. We learn geometry but aren’t taught interest rate calculation. We learn to read history but aren’t taught to understand basic components of agreements and contracts.
This infographic is so alarming. Just stumbled upon this now. Wish I had seen this sooner! Clearly, personal finance should be mandatory in all states!