| It's not hard to find statistics indicating that our skills | | | | career development. When students are taught |
| at personal financial management are, shall we say, | | | | about the principles of savings, investment, |
| not well developed. Our levels of debt and | | | | responsible use of credit, and checking account |
| over-consumption are huge, and this all was firmly | | | | management there is a much greater chance of |
| established before the economic nosedive. The | | | | student buy-in if the instruction takes place within the |
| American savings rate going into the current | | | | context of each young person choosing a career |
| recession, as everyone now knows, was practically | | | | that fits their interests and personalities. Think of it, |
| non-existent. This was a dramatic decline from the | | | | would you want to be told to solve a bunch of |
| 1950s to 1980 when we saved on average 8 to 10% | | | | abstract financial word problems on par with, "If a |
| of income. And without some savings ethic, it's hard | | | | train leaves Philadelphia at 2:00pm traveling 80mph |
| to imagine a personal wealth management plan of | | | | and another train leaves New York at..." You get the |
| any long lasting worth. Especially now, when the only | | | | picture, irrelevant and boring. Now in contrast, imagine |
| semblance of "savings" for many of us lately has | | | | putting kids through a process in which they're told |
| been in the form of 401Ks and home equity, both of | | | | that each of them has promise and a unique set of |
| which are about as rock solid as a pile of sand. | | | | developing interests and capabilities with which they |
| Collectively, we are all learning some harsh, but | | | | should each get in touch. And further that their |
| necessary financial literacy lessons. Encouragingly, | | | | individuality can have a match with a career that can |
| since September, our savings rate has increased... | | | | make life fun and interesting. With that students can |
| actually to the point where we're now being told | | | | look at how the money earned from these careers |
| we're saving too much and that if we don't spend | | | | can best be used to finance a reasonable and |
| more the recession will be longer and deeper. We are | | | | sustainable lifestyle. |
| also coming to grips with the fact that typical | | | | I'm not just hypothesizing here. I've seen it happen |
| American levels of consumption are probably not | | | | as an educator. Career development is the most |
| sustainable for the near future. So all of this raises a | | | | effective gateway to financial literacy for youth. |
| question, does it have to take a major recession for | | | | Of course, the biggest challenge is to get schools to |
| us to learn how to be really smart with our money? | | | | even bother with teaching financial literacy at all. |
| Is the younger post-Millennial generation now in middle | | | | Abstract and impractical math concepts still seem to |
| and high school going to be able to enter their | | | | dominate and hold more value in math education than |
| spending years smarter regarding credit and savings | | | | teaching kids how to be clever with finances. As for |
| than previous generations? Let's hope so! | | | | classes in ecomomics, the concern seems to be |
| In order for our kids to have any chance of | | | | much more to teach macro-economics's principles |
| becoming financially literate there needs to be a | | | | than to cover the more practical basics of financial |
| commitment from educators, legislators, and other | | | | education. But for those schools and states that get |
| stakeholders to see that effective financial literacy | | | | it, teaching career and finances in tandem is a great |
| programs are made available for students. And one | | | | service for the ones who will be in charge of the |
| critical component of any such program must be in | | | | economy when we're old and gray. |