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A friend in college had a t-shirt to this effect. I always found it very funny.
Most high schools DO have a money management class-mandatory or not the class is there to take. Now, tell me how many kids take the class and use it? THAT is the real problem. I think a more effective class would be one sponsored by employers for kids coming right out of college or to have one mandatory in your last year of college. More kids would pay attention and get something out of it then.
What's in it for the employer to give new graduates a class in money management? Honestly, I don't think they'd listen any more then than they would in 9th grade. If it doesn't have to do with enhancing their earning potential, they really don't care. Few young people think long term enough to realize that saving today means more income tomorrow. Few adults get that.
What's in it for the employer to give new graduates a class in money management? Honestly, I don't think they'd listen any more then than they would in 9th grade. If it doesn't have to do with enhancing their earning potential, they really don't care. Few young people think long term enough to realize that saving today means more income tomorrow. Few adults get that.
A lot of companies have services, classes, etc for these kinds of things. If your employees are worried about buying groceries and not having enough money to pay rent they aren't going to be as productive. Sometimes it is just about doing the right thing. I think people would find that kids just entering the workforce out of college would get a lot of good information, and use it, from something like this. Heck, some of the older employees too. Even just selecting the right funds for your 401K vs using the dart method (point a finger and use the one it lands on) would be helpful.
A lot of companies have services, classes, etc for these kinds of things. If your employees are worried about buying groceries and not having enough money to pay rent they aren't going to be as productive. Sometimes it is just about doing the right thing. I think people would find that kids just entering the workforce out of college would get a lot of good information, and use it, from something like this. Heck, some of the older employees too. Even just selecting the right funds for your 401K vs using the dart method (point a finger and use the one it lands on) would be helpful.
Honestly, employers should not have to offer basic money management. What kind of employees are they hiring if they are?
Now, I can see retirement planning and investment strategies because these help secure employees futures and reduce demand on the employer. However, who is really interested in someone who can't balance their own checkbook?
It makes sense that young people don't know much about retirement planning but to assume they can't do a simple budget means you're hiring from the bottom of the barrel. How are you going to motivate them to want to take the course and actually follow the advice?
If I were an employer, I'd expect to offer things like retirement planning, which isn't taught in school and many young people don't think about because they are young but I wouldn't expect to have to teach budgeting 101. First, there's nothing in it for me as an employer so why spend my money on it (no, it's not the right thing anymore than offering 100% paid medical insurance is the "right" thing. Just because employees would like something doesn't make it the right thing for an employer to do. Some things just aren't the employer's responsiblity.). Second, if my employees are that far behind the curve, I have no guarantee of even motivating them to take the course. I could make it mandatory, again no benefit to the employer but I'd guess they'd treat it like any other mandatory class and get a minimal amount out of it. It's not like I can check how well they're balancing their checkbook.
Now, I could see banks offering basic money management to their clients. Perhaps as part of a new customer program. They have a vested interest in you not bouncing checks and the more you keep in your account, the more they have to loan out. If I'm not mistaken though, you can go to your bank and ask for someone to work with you. I'll have to ask my DIL who used to work at a bank. I remember them explaining compound interest to me as a child when I opened my first savings account. Of course that account stayed open long enough to buy the toy I was saving for, lol.
Honestly, employers should not have to offer basic money management.
Nor should they have to offer writing and/or math classes.
Guess what?
Quote:
Originally Posted by Ivorytickler
It makes sense that young people don't know much about retirement planning but to assume they can't do a simple budget means you're hiring from the bottom of the barrel.
The bottom of the barrel starts further up the barrel than you think it does.
What's in it for the employer to give new graduates a class in money management? Honestly, I don't think they'd listen any more then than they would in 9th grade. If it doesn't have to do with enhancing their earning potential, they really don't care. Few young people think long term enough to realize that saving today means more income tomorrow. Few adults get that.
Many colleges do have money management programs/seminars for seniors that are mandatory. Both of my sons had to participate as part of graduation requirements. There were freebies given away and the corporations that sponsored/participated get to call it community services and is part of their charitable work etc. Many coming intend to save and many actually do. It may take a year but both of mine put hefty down payments on their most recent home purchases. One is 28 and the other just turned 33. There friends own homes and have investments as each of them do. We read about some but we shouldn't let that indict the many. Many professions and job sites have a culture where financial management and investing are part of the lunchtime/break culture. My experience does not count teaching as one of those professions. Try to bring up options in your 403B and how they are doing and you will often get dirty looks and the hmfff who has money to invest with what they pay us. Just participate in investment and financial forums and you will see many young participants. In fact Ron Paul this past election was popular with many in the under 30 crowd. Now that is someone who understands the burden of debt!
A lot of companies have services, classes, etc for these kinds of things. If your employees are worried about buying groceries and not having enough money to pay rent they aren't going to be as productive. Sometimes it is just about doing the right thing. I think people would find that kids just entering the workforce out of college would get a lot of good information, and use it, from something like this. Heck, some of the older employees too. Even just selecting the right funds for your 401K vs using the dart method (point a finger and use the one it lands on) would be helpful.
My youngest when he graduated college and started work got lectured by older colleagues about the value of company stock and their 401 plans for long term. He listened and bought in fully.
My youngest when he graduated college and started work got lectured by older colleagues about the value of company stock and their 401 plans for long term. He listened and bought in fully.
I hope he diversified. I know a guy whose daughter invested heavily in her company stock and went from having a couple million to retire on to nothing overnight when they went under. She's moved back home in the hope of saving enough to retire someday.
The financial knowledge of college freshmen | College Student Journal | Find Articles at BNET
The problem of the study was to determine college freshmen's financial knowledge. The entire freshman English 101, College Reading and Writing class at Texas A&M University--Commerce was surveyed. There were a total of 407 students enrolled in these classes. There were 20 multiple choice questions dealing with basic knowledge of financial issues, which should be understood in order to function in everyday life.
A good read on the topic. Lengthy but a very good read. Part of the problem offering it in high school is how do you differentiate student background and previous knowledge to make it meaningful to the more sophisiticated without embarassing the less able. Remember balancing a checkbook involves math and that in a mixed ability group is inviting laughter.
I hope he diversified. I know a guy whose daughter invested heavily in her company stock and went from having a couple million to retire on to nothing overnight when they went under. She's moved back home in the hope of saving enough to retire someday.
He has both his company and 401K stock plans plus non work investments. He and his fiancee put 70K down on a house plus closing cost from their savings and not retirement funds. This was their first home purchase. The 33 year old put 60% down on his third house. I think they know what they are doing. If they don't we are all in big trouble.
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She's moved back home in the hope of saving enough to retire someday.
