Monday, November 1, 2010
More students need (financial) facts of life
Ohio is making a requirement for all students to have some background financially before they graduate high school. This will be established by 2014, and all students will have the tools to know "what not to do." Students will learn and understand how to pay taxes, buy cars, pay utilities, and buy houses. So basically, upcoming generations should not make the same mistake that America has been making for the last ten years. A big reason for the big recession that hit a few years ago was people not being able to pay back loans. Banks would loan individuals money for houses and businesses, and these people would not be able to pay them back. Obviously, these people did not understand that if your going to take out a loan, make sure your able to pay back that loan. It's quite obvious this is the reason for housing market being down. Families thought they could afford houses they really can't. I really like the establishment of this class. It will help.
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I think it's more of a life lesson for American kids to learn how to budget than economic education. But it's a smart thing to implement anyway.
ReplyDeleteI think this class will benefit society in the long run by helping people become more responsible consumers. Let's hope our new governor doesn't gut our education system and axe classes like this in the name of "fiscal responsibility."
ReplyDeleteUltimately, market economies only work when there is complete information. This class will create a group of far more educated consumers who can weigh their tastes and preferences for current versus future consumption in a far more educated manner. This should overall smooth out the operations of the economy simply be providing symmetric information in terms of expectations.
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