You know that education is important, but here are eight reasons why financial education is important. If you’ve graduated high school then you’ve spent over 11,700 hours in the classroom learning about Science, History, English, and Math.
Pew Research showed that Generation Y is more educated than any other generation with more degrees and advanced degrees, but where do we stand when it comes to being educated about money?
There’s no SAT score or standardized testing for money, but over ten years ago, the United States Senate declared April as Financial Literacy Month for Youth. Is that an A for effort, when it comes to bringing awareness, or do we need more? Here is a quick reality check and eight facts about our generation and money.
1. TD Bank surveyed over 2,000 people age 18-34 and found that 76% of young adults do want financial advice, but 69% have never attended classes on money.
2. Only 24% of millennials can answer four or five answers correctly out of a five question financial literacy quiz. Think you can do better? Take the quiz here.
3. Perhaps money should be taught at home? Nope. Parents are more comfortable having a talk with their kids about drugs versus money. A T. Rowe Price study showed that 7% of adults found it difficult to discuss drugs with their children compared to almost 20% having a hard time talking about money.
4. In fact, talking about money is more taboo than bringing up religion or politics at the dinner table or in social settings with friends. A Wells Fargo survey found that 44% of Americans find it difficult to discuss finances versus other hot topics.
5. What happens when you avoid a problem? Stress. According to the American Psychological Association, the number one thing Americans are stressed about is money with 72% being stressed about money at least some of the time, and 22% experiencing extreme stress over money.
6. What exactly is there to stress about when it comes to money? The Business Insider reported that the average 20-something owes $45,000 total in student loans, car loans, and credit cards.
7. The U.S. Department of Education reported that young people are late on over $33 billion dollars of student loans.
8. In addition to student loan debt, The Investor Education Foundation found that 31% of millennials have unpaid medical bills and as a whole 23% of millennials spend more than they make each year.
Having a month dedicated to financial awareness is progress, but I’d say there is still room to grow.
After all if you graduated from high school you have devoted over a year of your life (nonstop day and night) to education. Money is something that you use every single day. Isn’t it time to learn about it?
What do you think? Do you feel that schools are teaching about money?
Financial education is important!