2011 is behind us and we are entering 2012 with certainty and optimism. Yet, with bills to pay from a happy holiday, compounded with financial markets fluctuating daily, today's only certainty is that our financial future remains uncertain. That's why financial literacy is more important than ever.
A Depressing Back Story
Right now, though, our general understanding of finance scores a D -- as in dismal. The typical college senior, upon graduation, has already racked up more than $4,100 in credit card debt, reports a Sallie Mae study . A vast majority of students -- 84 percent of undergraduates in the same study -- recognize they need to learn more about managing their finances. Sixty-four percent of those respondents say they would have liked to participate in some type of formalized financial literacy program.
Parents who sent their kids off to college this year probably have asked or are asking themselves such questions as: Can I count on my son or daughter to be financially responsible while away from home? Does my child know how to balance a banking account or save money? Did I teach my child enough? Unfortunately, statistics suggest the answer is no.
This lack of financial smarts continues into adulthood. A June 2011 working paper by the National Bureau of Economic Research found that half of adults surveyed said they have trouble keeping up with monthly expenses and bills. And when given a basic set of questions on economics and finance in everyday life, fewer than 10 percent answered all questions correctly.
The New Reality
While society believes fiscal responsibility starts with individuals, we haven't given them the necessary tools to make smarter financial decisions. We want our children to understand the dismal economic condition of the country and how that plays out in their household, but at the same time we are still giving them holiday gifts and allowances with little oversight. We are continuing to contribute to an already flawed perception of reality. The old adage holds true even in these times: we cannot teach our children to fish without teaching them to reel in the line.
Some states are positioning themselves to address the problem head on by mandating financial literacy curriculum by the time of high school graduation. Thirteen states now require this type of training -- far less than the need to embrace this national crisis. Moreover, a study by the University of Wisconsin-Madison revealed that more than half of teachers consider themselves unqualified to use their state's financial-education standards, and few (less than 20%) feel "very competent" lecturing a class on such topics such as risk management and debt.
Piecemeal legislation and teachers who have not been given the tools to teach create an imperative to solve this detrimental education gap. Corporations, nonprofits and private institutions can do something, however. They must join together and, collaboratively, bolster and supplement classroom offerings. Through our expertise and employee base, businesses can help provide access to tools and resources. We can train teachers to master the financial literacy curriculum. We can help students become financially literate. In essence, we can help close this chasm in our education system through bringing together financial literacy knowledge with education expertise.
The powers that be that RUN our country don't want an economy that makes sense, they want one that makes dollars, for them, and them alone.
Just as in feudal times, the general populace was denied the opportunity to learn to read or write, since that was held to be the privilege of the nobility, financial education is not available to the masses as it should be (even on a High School level) because the rich and powerful want it that way.
THEY don't want a well educated poor and middle class, especially in regards to finance or money matters. THEY want us to have just enough education to do the jobs they are willing to provide us, and no more.
Anything above that would be dangerous to them, and cut down on their "customer base" of easily influenced "consumers".
Make no mistake, that is our PRIMARY FUNCTION, at least in THEIR eyes, consuming their goods, to make them rich.
THEY run this country, not the government, and not us. What THEY say goes, and that's the biggest reason we find ourselves in the mess we're in.
"Power corrupts, absolute power corrupts absolutely"
The 1% may not have "absolute power"...........yet.
But they're working on it......... and gaining.