Why don't schools teach practical money management ?

Question

I work in financial services and I meet people all the time who have no clue as to how to manage money. Some people don't even know the BASICS. Am I alone in feeling this should be taught in all schools?

Answer 1

This may not be the answer you want to hear, but the college I work for purposely does not teach true financial management. Yes, we have a personal financial planning class, but it does not talk about not getting in debt in the first place.

Why? Because colleges rely on student loans for our revenue most of the time. We don't want students to think that no debt is good.

High schools often don't teach financial planning because of all the other requirements put upon them for courses to prepare students to take standardized tests. American schools literally 'teach for the test' and focus on getting test scores up because that is how they get their funding. Thanks to the No Child Left Behind Act, schools must perform well on tests or lose funding. With that the case, there are limited opportunities for elective courses and electives like financial planning are competing with music, languages, drama, etc.... Such a course unfortunately gets lost in the mix.

I agree it should be taught in our schools. I am a fan of Dave Ramsey and think his financial planning is the best out there and everyone should take a similar course.

Answer 2

They do teach it high school. I have been teaching it the last 20 years, but guess what? It is part of a math class that most people hate, and do not try to understand. Our society allows students in elementary school to use calculators because people do not see the importance of developing the memory. Therefore, by the time they get to high school the concept of money management which depends on understanding multiplication facts is lost on them.

Also, many people do not require their children to manage money. This is another reason kids do not think about it in school.

All kids hear are how crappy our schools are, and how much they don't do, so they figure why do all the crap everyone thinks the schools are doing. Basically, our society teaches kids to hate learning before they even try to do it. This doesn't always affect everyone in this manner. However, it is difficult for a 14 year old to realize how to manage a mortgage, a loan, a credit card, etc... when they can't manage the minutes on their phone and parents can't explain basic life necessities to them because they don't care. See where I am going.... Everyone thinks it is the schools responsibility to teach, but all any school really can do is expound on what is being taught at home is important.

You can see that when you look at extra curriculars that parents do get involved in at school... kids want to know everything about those things... football, band, cheerleading, soccer, game playing out of my hair, go to your room and watch your tv .... whatever the parents teach is important.... All the school can do is magnify and introduce.

Answer 3

I totally agree with you!!! Let's talk about bad checks for instance. I can't believe how many people bounce checks. I know how many come to my attention every month. I can't imagine how many other businesses go through the same thing with people not making good on the checks they write. I think they ought to do away with the whole paper check concept and go electronic. At least people will have to have the money in their account. If they were taught early on what a checking account is and exactly how to keep one reconciled, the world would be a much smarter place.

Answer 4

Yes, money management should be taught in schools. As a matter of fact, courses that students are learning today are obsolete. Subjects should be based on society today. They need more technical skills. I believe students should learn about business and financial management.

Answer 5

K-12 does teach this, but when you think about it, k-12 caters to business interests. A financially savvy public is bad for Aaron's, Rentacenter and Credit/Credit card companies.

We teach the Formula for interest, savings accounts, budgeting and smart purchasing. Students tend to go out to lunch, they feel most stuff learned in school don't apply to them. They would rather go into debt and learn their lesson paying their way out of it.

Answer 6

I was teaching money management skills to my 12th grade classes, but was told that this is not on the state standards and that I was wasting valuable class time for something that IS NOT ON THE TEST!!!

At first I couldn't believe it, but then I remembered that these are the same people who told me that I couldn't take off for spelling because SPELLING DOESN'T COUNT!!!

Answer 7

Thank you!!! I feel much better knowing there are people like you out there who see that our public ed system is failing. Rather than making these kids focus on "scoring high on a standardized test" how about we teach them to balance a check book and make a budget. Things that EVERYONE needs to know in life.

Answer 8

It replaced into taught in my intense college, and it replaced into additionally a call for. i think of its a good thought to have those training available in intense colleges. I say this through fact, their are many scholars who graduate out of highschool, yet have not have been given any thought a thank you to stability a checkbook. If those training are provided in colleges it will help prepare the scholars for the real international.

Answer 9

I agree. I think it would have saved me a lot of money and heartache if I had learned early.

Answer 10

Maybe it's the government's way of keeping a firm grip on all our throats, by keeping us all stupid and poor.