Health & Fitness
Financial Education Anyone?
Financial literacy is for everyone. And it should begin early. How do we ensure our children don't fall into the same financial traps many of us have?
Because I do not have older children, I am admittedly a bit naïve about the personal finance education offerings in the schools. However, based on the many recent tales of personal financial disasters in the media (home foreclosures, personal bankruptcies, various types fraud), I would guess we need to do a lot more to prepare our children for “real life”.
It almost seems cliche, but knowledge IS power. And unfortunately, if you don’t have knowledge, you’re not only an easy target for fraud, but you’re also more likely to pay more for goods and services. This is what really gets me. How are people ever expected to make a better life for themselves when they haven’t been taught basic concepts like the time value of money and how to calculate interest payments? Or how about the risks of interest-only loans? Or how your credit score affects not only the mortgage rate you’re offered, but the price of insurance? How about teaching the importance of having insurance? Or the importance of saving money? How about something as simple as how to find the best deals on consumer products, home services, medical services, etc? I could go on and on.
Yes, it is important to study reading, writing, and arithmetic. But I would argue that it’s just as important, especially these days, to learn personal/consumer finance. Many adults aren’t very well versed in the subject so we need to lean on other sources of help here, too. For example, our schools. And not just in Grosse Pointe – this is a national issue. I have read about many organizations that are trying to make a difference, but resources are thin and rare.
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I have grand visions of solving this problem one day. I have joked with friends and family that if I ever win the lottery, I will set up a foundation to help with the effort. I feel that passionate about it. I have grand visions of children and adults having the knowledge to pay less for goods and services, to recognize fraud when it knocks on their door, and just generally having a better life because of their understanding of finance!
But until I do win the lottery, I’ll have to keep brainstorming the most effective and efficient ways to help as many of our children as I can. Anyone with me?
