Americans are facing a record $13 trillion in debt. Many say that in order to combat the debt crisis, financial education should start earlier and high schools should be required to teach personal finance to all students. Others point out that research shows lessons on financial literacy in high school have no long-term impact on financial behavior. Should financial literacy be an educational requirement?
According to Money, the average millennial household "owes $14,800 in student loans." Writer Kerri Anne Renzulli explains that while debt averages vary across each generation, people of all ages are demonstrating a greater comfort with debt. As everyone becomes more comfortable with financing and credit, there is a greater risk that accumulated debt will never be paid off in full.
The country should take a proactive approach in preventing debt from spiraling further. Requiring personal finance in high schools with the goal of establishing financial literacy in young people before they become independent is a logical first step.
Even students understand that financial literacy is an invaluable skill. Considering most people have to learn the hard way when it comes to establishing credit, budgeting, and saving, students recognize that personal finance classes in high school could be life-saving.
According to U.S. News' Stacy Rapacon:
Although it may seem like common sense, research shows that personal finance classes don't actually make a difference for most students later on in life. According to U.S. News' Susannah Snider, researchers say financial literacy can't be taught in the same way "geometry or German" might be.
Fifth grade is perhaps a bit too early to have meaningful lessons on the topic.
According to pension fund analyst and fiduciary expert, John Lohr, high school is the last place for financial literacy to be taught. Lohr acknowledges:
But he also points out:
Requiring financial literacy classes in high schools is a classic example of throwing what seems like a logical solution at a problem before it has been properly researched. Changing a curriculum state-wide is a massive undertaking, and so far, research shows that a financial literacy requirement would not benefit students as much as the public may think.
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