The purpose of Money Talk is to improve readers' financial capability with research-based personal finance information.
Wednesday, April 17, 2019
Key Concepts About Financial Education
Financial education has been in the news a lot lately. According to
John Pelletier of Champlain College in Vermont, there has been an unprecedented
number of financial education bills in state legislatures in the last two
years. I recently attended Next Gen Personal Finance’s The Road to Financial Capability financial education advocacy conference
and below are five key concepts that resonated with me:
funding is not required for financial education mandates. High quality free
curricula and professional development programs for teachers are readily
available from several key non-profit providers. The only thing that is missing
now is the will to make financial education available to every student across
education and consumer regulation are compliments-not substitutes- for one
another. Americans need both education and regulation to make wise financial
decisions and avoid costly financial pitfalls and fraud. An example is teaching
about credit cards and regulating them with laws such as the CARD Act.
education standards determine the content taught to students. They should focus
on topics related to students’ lives now or in the near future. Student loans
need to be included in state standards and financial education materials.
education can be a great equalizer in an era of increasing income disparities
in the United States. After learning about saving and investing, compound
interest, and other key concepts, students may have financial hope for the
first time in their lives.
education includes teaching self-control. Conscientious people have good
self-control but not everyone is conscientious. Teaching strategies include
making students wait for something (delayed gratification) and showing them the
consequences of a lack of self-control.