by Ken Vincent, Featured Contributor
ACCORDING TO the Council For Economic Education fewer that 20% of grade school and high school teachers feel competent to teach economic and money management courses. The council also says that only 6 states are making solid headway in improving that situation. Those states are Colorado, Texas, Georgia, Missouri, Michigan, and Delaware.
Now teachers need to be taught how to invest, how to evaluate risk/reward issues, the different types of investments such as stocks, bonds, IMFs, CDs, commodities, etc. In addition to that venue, they need training on personal money management issues such as computing compound interest rates, managing checking accounts, and such.
The fact that few young people are educated in such matters is supported by the rapid rise in the use of prepaid debit cards. It seems many of the young find it easier to use them than to worry about bank fees, balancing check books, and running the risk of being overdrawn. An extreme example of the lack of understanding is demonstrated by the person that, when seriously overdrawn said,
I must have money in the bank because I still have checks in my check book.”
Some colleges and universities are now offering courses in money management as a way to stop gap this omission in earlier education.
So, where do you think the responsibility for this type of education lies? Parents, grade school/high school, college, employers?