Financial Illiteracy, Still Keeping Americans Poor
Given our economy, I'm with those who believe we owe our kids a thorough grounding in economics, both in elementary...
Given our economy, I'm with those who believe we owe our kids a thorough grounding in economics, both in elementary and high school. My kids, K and 2nd grade, make deposits in a local savings account every Wednesday, along with most other kids at the school. As I scramble around for money to tuck into their deposit envelopes Tuesday nights at midnight, I always think: Ok, this is a start. By fifth grade, maybe they'll be on to derivatives and exactly why they can never, ever trust the government with their money. As they age (our school is new and so far just K-2), we PTA Nazis plan to involve them in our fundraising activities, making budgets, figuring out profit margins, working the cash register, making change, deciding how to spend funds, etc.
Recently, an economist attempted much the same thing; he spent time teaching financial literacy to young mothers in homeless shelters, bless his heart. He learned many discomforting things (See his diary here) but I'm with him that one thing in particular is troubling. From the Economist: