Do We Need to Improve Our Financial Literacy

Speaking as an ex-teacher, I find it very sad that ourIt's not. What do they need to learn in good financial
students are leaving school with little if any financialliteracy education? I believe the bare basics of
literacy. Our young people for the most part leavefinancial literacy would include:o Setting financial goalso
school without receiving any financial literacyCreating your budgeto Itemizing your expenditureso
education.Planning for high-budget expenditures (including buying
The problems are even more deep seated than justa home)o Basics of banking (account types and
not receiving any financial literacy education. Asinterest rates)o Basics of investing (into stocks,
Robert Kiyosaki states in his book "If You Want Tobonds and mutual funds)o Planning for retiremento
Be Rich and Happy Don't Go to School?". "It is myInsuranceo Taxeso Understanding the impact of
belief that the first duty of any society is to teachinflation and interest on money and investments.
its people the basic skills necessary to be successful,However there is more, much more. Our students
happy, contributing citizens. Judging by what I haveneed to know that they have to work towards a
observed, our educational system has a long way tofinancial situation where they are not dependent on
go before we can give it a passing grade. In mosttheir employment as a source of income. One
schools, students can get straight "A's" throughoutstrategy would go something like this. Their car
twelve, sixteen or more years of education, yet stillshouldn't be a new one. A good reliable second hand
not even have a basic understanding of thosecar is all they need.
money-oriented skills that we need to survive andThe first house they buy should be a rental property.
prosper in our society."When their equity increases in the first house, this
Students, in many schools, are still being told that theincreased equity is their deposit on a second house
key to a successful life is to get a good education,and so on. They will get to a stage where their rental
then get a good job where you are permanentlyincome will be enough to let them buy their own
employed. In this day and age very few employmenthouse and their dream car. There's more top the
positions are permanent.strategy but that can come later.