Financial Literacy

The lack of knowledge about financial literacy in the United States is a frightening topic to delve into. According to financial experts, nearly eighty percent of Americans are in some kind of debt. I believe this is because Americans are financially illiterate. As of now, only one-third of Americans can pass a basic financial literacy test according to the National Financial Capability Study. People may say that money is not important but unfortunately it is. This mindset is running our people and our country into the ground. If this continues, the next generation of Americans will be in even more debt than ever before. So, let’s talk about what can be done to turn this situation around. 

    The first step to saving our people from financial ruin is teaching them the importance of what learning about financial literacy can do in their lives. According to financial literacy experts and the department head of the Student Money Management Center at Texas University, Paul Goebel, knowing about finance is the key to life. He states, “‘I think if people truly understand the way that financial systems work at an early age, or even later on in life—if they’ve made poor decisions but learn how they can go back and fix them and start planning for the future—they can then encompass that and take the steps to make a better life for themselves.’” Knowing about how to correct your mistakes and how to prevent them from happening again is invaluable. Financial difficulties are one of the most common stress factors in people’s lives, therefore setting yourself up for success and learning how to correct your mistakes could even make you physically healthier. So what can be done? The best place to start would be in our school systems. Some districts have already begun to introduce financial literacy into their classes and the results have been incredible. According to the article “Money Matters,” by Nicole Kruse, these programs are having tremendous success with students. Kruse states, “By the time students graduate from eighth grade, they not only have learned about the stock market, budgeting, taxes, gross and net profits, credit, and interest, but they also have written business plans, started their own businesses, and pitched their ideas.” Not only are students under the age of fifteen learning about budgeting and how to live paycheck to paycheck, but they are able to take their knowledge one step further. They learn how to invest and save for the things in life that are really important, like a family home or education. By introducing more of these programs into schools all across America students will be breaking the cycle of financial illiteracy that exists today.

Clearly, financial literacy is a subject that has been too overlooked for far too long by our government and our educators. Once we start acknowledging its importance and begin to follow the example of schools that have implemented financial literacy into their curriculums we will be able to really start to see a change in our country. When the change comes, I wholeheartedly believe that American’s debt, problems, and stress levels will decrease drastically. Life can be comfortable and better for all as long as we take the steps to make it so.

https://youtu.be/qxXeZrH8u_o

This video explains the definition of financial literacy and why it is more important then ever to learn about it.