What do you wish you had learned about basic finances in high school?

Question

I've been asked to do a six-week study, high school level, about managing finances. We will meet once or twice weekly depending on how much material I plan to cover. Want to contribute any topic suggestions? Anything from balancing your checkbook to investing in mutual funds/stock trading, leasing vs. purchasing autos, diff. types of mortgages, etc.

Earn a few points by adding your ideas!

Answer 1

Definitely checkbook reconciliation!

Basic household budgeting

Credit Cards -- how interest is calculated, how long it takes to pay off with just minimum payments

Loan/credit card contracts -- terminology, importance of reading before you sign

Credit report/score -- reporting period, effect of bad credit, safeguarding personal info/ID theft

Answer 2

What a terrific idea!!!

I'd start with balancing the checkbook as well.

I think at that age it is really hard to grasp (or at least appreciate) investing so i wouldn't invest to much time there.

I think a LOT of time should be spent on consumer debt (how it works, the traps, etc.) Teach the benefits of budgeting and saving for purchases versus buying them on credit. Give specific examples of the cost of borrowing and the impacts of falling behind on payments. I think this is something to many people did NOT teach to their children over the last decade or so. Our youth is learning a I want it Now mentality that will haunt them in their future.

Just my two cents - GREAT idea though - good luck!!!

Answer 3

I work in a bank and we receive more call volume from those asking "I can't be overdrawn; what have you done with my money?"
People, please, learn how to balance your checkbook and compare the balance with your account statement each month!! This is not rocket science. I couldn't tell you how many times I have gotten this call and when I ask them "Did you balance with you statement?" I get some of the dumbest answers...either a blatant NO, or "I round up, so it shouldn't matter" Guys if you are going to call the bank for help, we need a starting point to help you find were the problem is. Balance with your statement. Check that all of your deposits posted properly, mark off each check that has cleared with those you have written in your register. Make sure they posted for the amount you wrote them for! Any that are left over in your register had not cleared as of the statement cutoff date and need to still be subtracted from your balance.
Please, use a calculator, there is zero shame in that. Trying to do that kind of math in your head will get anyone into trouble at some point or another. Always DOUBLE check your figures. This is your money folks, shortcuts here, or laziness, is not the way to go. You do not pay the bank to be your accountant, that is not our job!!! You pay us to keep your money safe and secure!!!
BALANCE YOUR CHECKBOOKS OR HAVE SOMEONE DO IT THAT KNOWS HOW!!!!

Answer 4

The fundamentals about finance -- how to budget to meet expenses, balancing a checkbook, how to open bank and brokerage accounts.

It would be nice to understand how capital and labor are each sold in the marketplace, one as wages and one as dividends/interest, and how having capital can change your life.

Then I wish that I had known about compounding, buying a good company and being patient to let its worth grow.

Then I would teach about how the US government's spending and budgeting are not sustainable and how important it is that we reign in entitlement programs and spending. The US debt (including unfunded social security, medicare and other programs like federal retirement) will be extremely painful for US citizens very soon.

Answer 5

Just look right here on Yahoo answers. Look at some of the questions ask. There are alot of questions regarding basic stuff like budgeting and managing your money. Credit Card debts, payday loans, bad landlords, buying a house with either your boyfriend or girlfriend, etc. There is plenty of material for you right here before your eyes.

Answer 6

1. The value of writing down all your income and expenses and then putting them in categories to understand the big money picture very clearly.

2. The real truth about balancing a checkbook: how the overdraft fees add up and "kill" you if you're not careful with writing things down & keeping an accurate tally. How you can rack up a $30 charge for a $2 debit card purchase if your deposit hasn't cleared & your account's in the red. How very simple it is to balance a checkbook if you don't let things get into such a mess that it's hard to figure out what's cleared & what's still out there.

3. Something that once cost me hundreds of dollars: depositing a check made out to both my husband and myself (which we didn't notice) without both of us having signed it. The bank accepted it with my signature alone, gave me a deposit receipt; I waited the amount of time they said we needed to wait for it to clear; I verified that the funds were there, and wrote lots of checks based on that money. THEN, much later, the bank suddenly realized my husband's signature wasn't on the check. They rejected the deposit which had supposedly already cleared and all those checks I had written went BOING!

OUCH and DOUBLE-OUCH! We talked to the bank but they would only agree to cut the cost of our fees in half (which didn't touch the fees charged by the businesses I had written the checks to, of course). So please, let your students know it is very important to have ALL the people sign a check for deposit if it is made out to two or more people.

4. You can't stress enough the value of a good education that will give them higher earning ability. As a student, I had no real picture what an impact that has on a person's life.

5. You might show them episodes of the reality t.v. show, "Til Debt Do Us Part," if you can get them.
http://www.slice.ca/Shows/ShowsPage.aspx?Title_ID=93097
A documentary on the working poor would also probably be an eye-opener.

6. I would also include teaching budgeting on groceries, fast food, & restaurants. Give examples of the difference between making meals at home & the cost of eating out. Some reference websites are:
http://www.miserlymoms.com/
http://www.debtproofliving.com/
http://www.savingdinner.com/
http://www.cnpp.usda.gov/USDAFoodPlansCostofFood-CostOfFoodAtHome.htm

7. Something else that would be helpful for your students to know (to prepare them for when they are living on their own) is the difference in cost between buying new vs. buying used.

You could discuss what things may not pay in the long run to buy cheap or used, because paying up front for a higher quality item will be more cost-effective long-term. For example, I think it's better to buy a new Energy Star chest freezer, rather than buying an old electricity guzzler that doesn't work very well anyway. Even with this, there are ways to save; for example, if you buy at an outlet store, or if you don't mind if it has a scratch on it, etc.
http://clarkhoward.com/

Ask your students to consider using thrift stores or discount stores for items in which "new-ness" is not necessary. You might introduce them to some "image" concepts from the book, "The Millionaire Next Door:" that he who spends the most isn't necessarily the one who has the most money. Also, make them aware of the free used items that are available for the taking through their local Craigslist or Freecycle.
http://www.freecycle.org/

Answer 7

I wish I would have paid more attention in high school, but to answer you question...I wish I would have been taught more about the stock market and how it can be a viable way to increase your assets. The whole process is very confusing and it is so easy to be taken advantage of. Good luck with your study

Answer 8

I think it's really important to teach kids today to live within their means. This means NO credit cards. If they don't have the money to buy something, then they don't need it.

With that said, the budgeting process is extremely important so they know what income they have coming and in, and how to spend that money, on paper on purpose before they get that money.

Answer 9

learned basic finances high school

Answer 10

How about how important your credit score is to you and what to do to keep it that way. Wish I new about this in HS. It took me awhile on my own to figure this out.