Why isn’t Financial Education Taught in Schools?

Source – http://debtcafe.ca/

If there was a time for financial education that is better then surely it is now? When you examine the state of a lot of the markets around the world it’s a mystery why fiscal schooling is not compulsory schools. It is simple to attribute banks, big business or governments for the current climate but it’s the education of people that need to transform.

At school, we may have learned some skills essential to get work, but nobody tells us manage or how to create our wealth. We are headed for a future fiscal catastrophe, if we can’t prepare ourselves on ways to get and retain our money.

In Canada, individual debt is growing 23 times faster in relation to the economy. It’s a similar scenario in a number of other developed countries, for instance the charge card debt in Canada is over 220bn or an average of 3175 per person. A student loan disaster is being faced by thousands of college graduates who’ve invested in their own schooling. The job market is shrinking, and also the bitter economy is preventing employers, parents and relatives from helping those who are behind on payments. Student loan defaults are at their highest rate since 1998, and likely will go higher, People are even losing their houses and don’t have any money to retire on. It is estimated the average person today will require $ 1.5 million by 65 years of age to retire comfortably.

Some claim that a better way to teach youngsters about money is in the residence, which may have its values but may create something of a vicious circle: when parents are financially illiterate they’re not likely to educate their kids very well, are they? Which means the minority of folks, who are intelligent about money, will (potentially), raise kids who are also smart, while for the remainder the cycle will continue.

Another argument put forward against financial education in schools, centers on the twin pillars of lack of time plus lack of cash. School curricula are already crowded a sizeable financial education programme plus places would need to come at the expense of something already set up. Few teachers would possess the necessary competence and confidence to deliver such programmes without the need for additional training and resourcing.

These arguments could be countered by providing financial education online or via other media accessible to pupils, and indeed their parents, 24/7. Young people will spend hours playing an instrument, analyzing independently for areas with a genuine personal interest, building a MySpace page or learning to drive for example.

There are existing projects sponsored by banks and financial institutions around the globe although backing may not be such a simple nut to crack. Dissenting voices would point out that if it was are they the greatest sway to help educate the following generation? Authorities might also view the longer term advantages of providing financial education as saving them the cash they might otherwise must spend on social security in the future.

The argument will continue as to who should deliver what and when but in the meantime, parents and young people themselves can take a proactive strategy and seek the resources presently available.

A great source for younger kids is The Fiscal Fairy Tales chain, which introduce comprehension and money principles via amusing and engaging stories.