The life-long benefits of teaching children good money habits make it well worth the effort. Children who are not taught these lessons pay the consequences for a lifetime.
The problem is a lack of financial education. Why don’t we teach kids about money in school? Wealthy or not, smart or not-so-smart, we all use money. Yet, while there are a few schools beginning to offer some financial education, it seems that most educators believe money isn’t a subject worthy of the hallowed halls of our learning institutions.
There is virtually no formal financial education in our school systems. Most education comes in the form of a very broad overview of economics. Okay, understanding how the economy works is important, but it is also very dry and has little to do with personal finances. Ask any student in high school how a mortgage works or what the APR on a loan or credit card actually means and you would likely be faced with a blank stare. They might be able to recite every bone in the human body or ask where the post office is in French but couldn't explain what a credit score is or how compound interest works.
First, debt is not necessarily a bad thing. Debt is simply the leverage of using other people’s money. The London Stock Exchange does it, people who buy homes do it, it can be a great wealth building tool. The root of the problem is not with debt itself, it is that people don’t use debt as a tool for financial gain. Instead they use debt because they fail to understand the consequences of using it ineffectively.
But their problem isn't credit cards — it’s a lack of financial know-how. And at the root of that lack of knowledge is our school system and its archaic curriculum, which is out of touch with the way people really live.
The more children learn about money, the more they will be able to make wise financial decisions as they grow older. If the schools fail to educate our children it is up to us the parents. Lead by example and ensure your children are on the path to financial independence from day one.
The problem is a lack of financial education. Why don’t we teach kids about money in school? Wealthy or not, smart or not-so-smart, we all use money. Yet, while there are a few schools beginning to offer some financial education, it seems that most educators believe money isn’t a subject worthy of the hallowed halls of our learning institutions.
There is virtually no formal financial education in our school systems. Most education comes in the form of a very broad overview of economics. Okay, understanding how the economy works is important, but it is also very dry and has little to do with personal finances. Ask any student in high school how a mortgage works or what the APR on a loan or credit card actually means and you would likely be faced with a blank stare. They might be able to recite every bone in the human body or ask where the post office is in French but couldn't explain what a credit score is or how compound interest works.
First, debt is not necessarily a bad thing. Debt is simply the leverage of using other people’s money. The London Stock Exchange does it, people who buy homes do it, it can be a great wealth building tool. The root of the problem is not with debt itself, it is that people don’t use debt as a tool for financial gain. Instead they use debt because they fail to understand the consequences of using it ineffectively.
But their problem isn't credit cards — it’s a lack of financial know-how. And at the root of that lack of knowledge is our school system and its archaic curriculum, which is out of touch with the way people really live.
The more children learn about money, the more they will be able to make wise financial decisions as they grow older. If the schools fail to educate our children it is up to us the parents. Lead by example and ensure your children are on the path to financial independence from day one.
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