Going to school is a Scary thing for people, particularly with the current economic struggles. Student loan debt is not what it was. In 1996, graduating students left college with nearly $13,000 in loans. Now, the typical student walks away with $24,000 to $28,000 in student loans and over two-thirds of pupils borrow money. Also increasing, student-default prices have reached an overpowering 8.8 percent this fall, according to the U.S. Department of Education. And there does not appear to be an end to the increases anytime soon. According to a study published last week, the average tuition for a public college has increased 8.3 percent this fall alone. More than 120 higher education institutions are now charging their pupils over $50,000 annually for tuition, student fees, and room and board and meal programs.
With That Said, Students, teachers and parents alike, do not believe that students are ready financially when they go to school. According to a study put on by the American Savings Education Council, less than half of U.S. high school and college students have a regular savings plan. Out of the half, just one-fourth of these students have the ability to plan and keep to a budget, and more than one third do not focus on their spending in any respect. Many pupils are borrowing without understanding the fundamentals of finance and because of this, make expensive mistakes that may affect them for many years after they graduate from college.
Many students say that They look to their family, friends and coworkers for financial advice nevertheless; a lot of those individuals have made lots of financial mistakes of their own. According to the National Financial Institute in 2007, less than 30 percent of American adults see their financial knowledge as very good. So with a fantastic amount of Americans not being confident in their financial choices, how will these new students learn how to keep afloat in such a hard financial time? Well, people are turning to high schools and colleges to educate our youth.
In a recent survey Conducted by Visa Inc., 85 percent of parents stated they need a course in personal finance for a high school graduation requirement. We are not only talking about the basic economics and balancing a checkbook either. Parents want their kids to learn important concepts like the time value of money, reward and risk, interest compounding and the value of savings. The Issue is schools Do not have enough time, resources or money to implement finance classes in their busy school year. At this point in time, only four countries have created personal finance courses a necessity for their students. A vast majority of states require some kind of Kuran Malhotra financial literacy to be infused with current curriculum nonetheless, the teachers that provide the financial instruction do not have any educational background or training in teaching fund, which finally brings us back to square one; getting flawed