The Insurance Industry did surveys in the 1970's on getting a windfall
amount of money from a settlement or an inheritance. If 100 people got a
windfall on January 1, by the end of the year only 6 would have any of it left.
Kids are not the only ones who can't manage money.When I was a
kid I asked my mom why "The Smiths" had a new Cadillac? I asked if it
was because they were rich? She answered, "No it's because they have
Are Americans stupid? Its not rocket science. Live on less than you make. Save
and invest the rest.
"‘Most American high schoolers don't know how to manage
money’"A lot of the baby boomer generation don't know
That's a sad state of affairs for young high school kids. Luckily for me,
I had a dad who taught me fiscal responsibility at a young age. Every dollar I
ever made as a kid, I would invest in the market. I wasn't like most high
school kids that would go out and waste their money on useless items that
brought temporary satisfaction. My father taught me about compounding interest,
and how a dollar today is worth a whole lot more in the future. Because of these
investments, I graduated college with 0 debt, and I had a nice vehicle paid for
by me. And to this day, I use these same principles to govern my life.
Planning on retiring by age 40 and exiting the rat race to do what I want with
my time & family. Also, I set up a UGMA account for my son, where I
contribute so much every month for him, and this money will translate into
thousands of dollars in the future to pay for his school. Too bad no kids know
how to do this!
The solution is to revamp the financial literacy classes in high school.
Financial lit is required, but it's a joke. I took the thing online, and I
skipped the lessons and went straight to the assignments whenever I could, and
still got an A. From what I can tell of the classroom version, all they do is
make pointless posters. If that's our level of 'financial
literacy,' no wonder we fail so badly.
One quick fix would be to eliminate all credit cards, and checking accounts, and
eliminate withholding of taxes from wages. If people had to count
out cash when they bought something, especially trivial junk, they would see
where money goes. And, they would (eventually) discover that at some point you
run out of money. That might convince some to prioritize needs and wants and
make sure the important stuff gets funded first.And, having to count
out cash to pay taxes instead of "getting money back" would be a real
eye-opener.Now, if we could just get that concept across to 535
members of Congress and our President(s) our nation would be a lot better
off.But, "free stuff" is an irresistible lure so nothing
will change until our economy implodes when the Chinese discover we have no way
(and little intention) to ever pay back the $17.5 trillion in debts we have run
up with them.The failure to teach financial literacy in school (or
home) is one of the biggest failures of our education system.
@liberal ted. It is not bad to drop bombs on babies? Are you serious?
Imagine that, legislators concerned that kids do not know how to manage money.
If everyoneover 18 knew how to manage money, most legislators would be
unemployed. While $1,500 Iin cc debt sounds bad, it looks like pocket change
when.compared to the nearly $60,000 owed by every man woman and child as part of
the national debt.
All of the above.
... and water is wet.
parenting can solve this issue... or maybe we should just have the federal
government handle this too
I wish we all could blame the President & Co. for all of our problems and
the fact that high school students (and sometimes their parents) don't know
anything about managing money. I'm going to take a guess that these issues
actually existed way before Obama was elected President and will continue on way
after.The students are only reacting, ultimately, to the world we
adults have handed off to them.
And then we allow these high school kids to vote. Falling for the same lies over
and over again. "Free college education" "Debt forgiveness"
"Student loans are an investment" "Invest $100K into an art
degree" "These are new ideas" "Old people don't know what
they're talking about" "Pot isn't bad for you"
"Legalize drugs" "It's your right to kill babies"
"It's bad to drop bombs on babies, unless if it's your choice and
in your body"Then we end up with barack, nancy, harry, joe so on
and so forth.
Most adults don't either...
I would contend that the headline should read, "Most Americans Don't
Know How to Manage Money". Working in the banking industry for over a decade
has confirmed that the reason high school students don't know how to manage
money is because their parents don't either. Part of what I do is teach
finacial literacy classes in high schools and the majority of the kids have
blank stares when you ask a question. There are however many parents that do a
great job with this and their children can manage money.
One reason for this. Parents are paying for everything and teenagers rarely
look for jobs any more. Of course Utah is an anomaly in this area as we are in
many other areas. My kids get their first job at 14 and learn the basics of
finances early on. It isn't that hard. By the time they have to take
financial literacy in high school, they think it is a complete wast of time
because they learned it all at 14.