Education – Page 2

Although public schools do a good job teaching kids to solve equations, diagram sentences, and regurgitate state capitals, there is a growing push for mandatory financial education in America. America ranks 14th in the world in basic financial skills. Only 57% of adults are considered financially literate -- less than 3 in 5 individuals. Women and the poor are the most underrepresented subgroups. So what's the problem? The statistics are alarming. Lack of financial literacy leads to money troubles later on for students. Student loan debt has more than doubled to $1.5 trillion in the last ten years. Credit card debt is on the rise, and 40% of U.S. adults are one missed paycheck away from financial disaster. Some policymakers see this as a need to make college free for all. But maybe the root cause is a lack of financial literacy. Rather than giving post-secondary education away for free, maybe high schools ought to be teaching students about the dangers of consumer debt, managing household expenses, and credit management. An ounce of prevention... As with many things (e.g., health, wealth, relationships, etc.), it's often too late before people realize they have a problem. And unlike poor health, poor financial standing isn't always obvious. Lots of broke people dine out, drive nice cars, and go on exotic vacations. Most students don't understand the difference between net worth and net income. Moreover, they don't seem to care. The mindset of the poor can seem pernicious, but financially literate educators are not surprised by who lands on their feet and who struggles. You can lead a horse to water... So are legal mandates the way to go? Having the government force people to learn in spite of themselves? Often student's parents are struggling financially. Since finances are an intensely personal thing, help is usually not sought until people are sick and tired of being sick and tired. Schools are on the right track requiring career files with resumes. But schools are still operating with the industrial age mindset. We seem to be training kids to be academicians or employees. To paraphrase Ken Robinson, if aliens ever came to Earth, they would deduce that public schools were designed to produce university professors! Technology and metacognition (learning how you learn) are the name of the game in the 21st century. We are now in the information age, and schools need to catch up. Pennsylvania is one of 16 states that does not require a course in economics to graduate high school. Home economics programs should probably be augmented, not eliminated. Teaching kids to win with money is likely more advantageous to our nation than more schooling and testing. Aren't the best results successful adulting? Is the writing on the wall? The trend toward privatization and self-education will likely continue. Policymakers need to exercise consistent rules, values, beliefs, and standards. Technologies may change, but universal truths will not and should be our guiding force. Do you think financial literacy should be mandated or just offered?

Mark Noldy

Category: Education