Student Loans

Why Students Need Financial Literacy by Brian Page

Diane Ravitch, former U.S. Assistant Secretary of Education, is a historian of education, an educational policy analyst and a research professor at New York University’s Steinhardt School of Culture, Education, and Human Development. She also writes an education blog that is widely read, and sometime closely scrutinized, but the industry.

Today, her blog featured a guest post by Brian Page, award-winning educator, who demonstrates the same passion and drive for education as Ravitch does.

From Page’s post, “I want our children first introduced to complicated financial concepts and contracts by teachers who love them and who are trying to help them, not by someone trying to trick them. Relying on the school of hard knocks should not be an option anymore. It is time a step is added in the ladder to empower future generations to make wise and informed financial choices. Personal Finance should be integrated into every child’s K-12 educational experience, and a course in Personal Finance should be a semester-long high school graduation requirement.”

We couldn’t agree more. Read the full post here, and see what Ravitch has to say on her blog here.

POSTED: January 16, 2013 | BY: admin | TAGS: , , , , , , , ,

CEE in the News: Financial literacy can help deflate the growing student loan debt bubble

CEE’s Survey of the States was once again utilized as the backbone of support for economic and financial education in our nation’s schools.

In last week’s USA TODAY, Sabina Bharwani and Carrie Sheffield encourage K-12 education in economics and personal finance to prevent the ever-climbing student debt from reaching uncontrollable proportions.

“Teaching personal finance, economics and business in schools is a fundamental task in our hypercompetitive world, yet too few of our schools are on board. In 2011, just 22 states required a high school course in economics and just 14 states required the offering of a course in personal finance, according to research from the Council for Economic Education (CEE). These classes offer a solid foundation for studying our ever-globalizing world and guidance on dealing with tempting credit card offers hitting students’ mail boxes at age 18.”

Read their full column here.

POSTED: January 14, 2013 | BY: admin | TAGS: , , , , ,

CEE in the News: Why Teens Fail at Managing Money

CEE’s Survey of the States is often referenced in articles such as this one from MSN Money, ‘Why Teens Fail at Managing Money.’ Findings from the Survey show that over the last two years, economics and personal finance requirements to graduate high school are slowing and in some cases moving backwards.

Today’s student loan debt is more than the national credit card debt, and if students continue to graduate high school and college without financial literacy, both numbers could continue to climb exponentially.

Read the complete story here, and leave your comments below.

POSTED: January 7, 2013 | BY: admin | TAGS: , , , , , , , ,

Early Education in Personal Finance Will Thwart Student Loan Crises

With each new report, statistic and news story, it is apparent today’s students are graduating college with an alarming amount of student debt.  The latest data from the Department of Education shows ninety-four percent of students who earn a bachelor’s degree are borrowing to pay for it, up from 45 percent in 1993.

This article in The New York Times features recent grads and current higher-ed students who are, surprisingly, not prepared to pay back their loans.  As 18-year-old Kelsey Griffith, who is graduating from Ohio Northern University with $120,000 in student debt, said, “I knew a private school would cost a lot of money. But when I graduate, I’m going to owe like $900 a month. No one told me that.”

As Kelsey clearly states, she had no personal finance education to explain  the real cost of college.  As higher education institutions increase marketing and recruiting tactics, students are left to their own devices to cover the bills.

Not only is personal finance education critical for our youth when it comes to their own finances, but we cannot afford to raise another generation that does not fully understand the complexities of our global economy. The recent economic downturn has brought nationwide attention to the dangers of a financially illiterate society. CEE’s 2011 Survey of the States shows that while there has clearly been progress since the first Survey in 1998, that over the last two years, the trend is slowing and in some cases moving backwards. Such ignorance comes with a high price—for all of us.

It is critically important to educate students on economics and personal finance, and if requirements are passed, schools must provide these important classes about the real world issues that students face—before it is too late.

POSTED: May 14, 2012 | BY: nan | TAGS: , , , , , ,

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