The next financial crisis doesn't involve a housing bubble

Published: Monday, Sept. 23 2013 2:05 p.m. MDT

In this Wednesday, Sept. 1, 2010, file photo, Richard Fuld, Jr., Former Chairman and Chief Executive Officer Lehman Brothers, center, reacts as he testifies during a Financial Crisis Inquiry Commission hearing, in Washington on Capitol Hill. At left is Thomas Baxter, Jr., General Counsel and Executive Vice President Federal Reserve Bank of New York, and at right is Harvy Miller, Business Finance and Restructuring Partner Weil, Gotshal and Manges, LLP.

Carolyn Kaster, Associated Press

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Are we headed for another financial crisis? CNN Money’s Jack Markell seems to think so. But it’s not the kind of financial crisis we saw in 2008; Markell thinks this one will hit a little closer to home.

The next financial crisis, Markell argues, will come from a widespread lack of understanding personal finance.

“Helping people understand their finances is absolutely essential in today's economy,” Markell wrote on Friday, adding that American schools have “not done nearly enough to give Americans control over their financial destinies.”

“To be sure, knowing how to put together a personal budget or how a credit score works won't raise a person's income,” he continued, “but it can make a paycheck go further and show families how to avoid decisions that cause long-term harm. While some of today's financial stressors will persist until the economy improves, a better grasp of the financial basics can make a huge difference to millions right now.”

Read more about personal finances on CNN Money.