Financial Literacy Info

We have learned our habit of money from our parents and that is the problem with the world. In Robert Kiyosaki’s “Rich Dad Poor Dad” “Retire Young Retire Rich,” he refers to it as “swinging your parent’s axes.” Schools should require business classes for every student because you use money no matter what job you have. The lack of financial literacy is causing the crisis on our country and the people that lack the financial education are the ones trying to fix it.

The United State’s treasury is concerned that teens may not adequately know that much financial literacy. They tested over 47,000 high school students and, on average, students scored around 50 percent while only 35 of the students passed it. They are encouraging students to learn finance by offering a 1,000 dollar reward to students who can ace the test. “(Wall Street Journal).”

I have learned a lot from the “Rich Dad Poor Dad” series, and I shall share some of the knowledge I have gained. Financial literacy makes a great difference in how much we make. As previously stated, people learn money habits from their parents. On average most families who have a high income are better educated in finance. On April 15, 2006 USA Today reported of a survey taken by high school seniors of 35 states and only 48 percent of them got a 50 percent. A closer look though reveals that the students who did better on the test come from a family who gains over eighty thousand dollars a year.

According to Schwab Money’s website eight to ten students between the ages 13-18 believe it’s important for them to have a lot of money in their lives. Nearly 75 percent of them say they will make plenty of money when on their own. Yet most of them don’t realize how much it will take to get there. When asked for the basics of finance most teens can give a decent answer, but when getting more specific there are gaps in how to budget for money, how to pay bills, and how credit card fees and interest work. Teen want to learn the ways of money and turn to their parents in hope of them willing to discuss money. Nearly 90 percent of teens don’t know how to make capital gains. Over half say money management is interesting while half of that say that it’s one of their top priorities.

An internet site that is a source on credit card information called www.cardratings.com says there are companies that will even accept thirteen year old. Curtis Arnold says that he sees arguments that are good on whether teens should have or not have credit cards. He believes that credit cards are better to use over cash. There is also more consumer protection in using credit cards over debit cards. In my opinion I think Curtis believes this because if the credit card gets stolen and is used to spend money that you didn’t spend the company has to prove that the card holder did it.

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