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When it comes to understanding basic concepts about investing, Americans come up woefully short. Consider that while 67% of respondents to a 2009 survey rated their own overall financial knowledge as “high,” only 53% answered this question correctly: “True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
46% of roughly 28,000 participants either did not know the answer or answered incorrectly. (1% chose not to answer)
I know, I know, this isn't exactly shocking "news", but farther down in the article, it confirms a suspicion I've had for a long time: The teachers responsible for our young teens' education are, for the most part, not financially literate themselves.
Many people I know do not know how to add, can not understand interest charges, and are not capable of any sort of thinking about their financial future - and I mean 30 days from now when the bills are due.
For example they just don't get it that many small purchases each day add up to big bucks when added up for the entire month.
And these "rent to buy" places. They don't understand the base prices they charge for things can be double or triple the cost of the same item elsewhere. And with the interest they charge, they wind up paying 5 times or more for an item. All they look at is the monthly payment. I know someone who paid $600.00 for a stereo they could have purchased for $90.00 cash elsewhere!
Then they buy unnecessary things "now", then wonder why they don't have enough money to pay for a bill due a few weeks later - don't even think about that bill until it arrives in the mail. Then panic.
46% of roughly 28,000 participants either did not know the answer or answered incorrectly. (1% chose not to answer)
I know, I know, this isn't exactly shocking "news", but farther down in the article, it confirms a suspicion I've had for a long time: The teachers responsible for our young teens' education are, for the most part, not financially literate themselves.
This isn't new. I find it frustrating, but not surprising. Education is not valued in American society. Our schools are crappy and very few teach any kind of basic investing information. I believe it is that way by design to keep people financially enslaved.
Of course, look at our education system, where in it would this ever be taught? Even after five years of college, to include my MBA, not one mention of personal finances has ever came up.
However, I can rattle off a list on basically useless garbage I have had to take in college, none of which would ever do myself, and others, as good in life as classes that would go over items as in the article. This can be applied to HS as well.
I also always say the same about basic medical things, like CPR; why in the heck universities require numerous garbage electives, yet not even a basic medical course, and/or personal financial course is offered as an elective? What is going to assist society more; people knowing basic medical knowledge and personal finances, or knowing 12th century literature?
46% of roughly 28,000 participants either did not know the answer or answered incorrectly. (1% chose not to answer)
I know, I know, this isn't exactly shocking "news", but farther down in the article, it confirms a suspicion I've had for a long time: The teachers responsible for our young teens' education are, for the most part, not financially literate themselves.
At one time I taught high school economics and did teacher training in. Efforts to push it deeper into state curriculums went by the wayside as other topics were deemed more appropriate. Curriculum development was spotty and the range of student abilities considerable so target points were difficult. The most talented students soaked it up and still make references to how much of a life long skill it was and how their financial security is so secure because of it. As far as your comments about teachers not being financially literate that is so often very true, very true. Some are very and some are very not. Some are interested in and some aren't. It is possible to implement a teacher certification program but the spot in the curriculum is just not there now. I did a lot of work in content development and some of that is still on the table. One of the basic tools is still around and has been seen by many at the high school and college level who are being given the basics.
Education is not valued in American society. Our schools are crappy and very few teach any kind of basic investing information. I believe it is that way by design to keep people financially enslaved.
You might have a legitimate point. The below excerpt is from a 3 page article on MarketWatch.com
7 Reasons Wall Street does not want financially literate investors
(section skipped)
Here’s how one leading neuroeconomist put it: Wall Street “needs investors who are irrational, woefully uninformed, endowed with strange preferences, or for some other reason willing to hold overpriced assets,” says University of Chicago Professor Richard Thaler, co-author of “Advances in Behavioral Finance II.” Bottom line: The last thing Wall Street wants is 95 million investors who are wise to Wall Street’s con games. Wall Street revenues would drop substantially if financially literacy really did work. Remember, Wall Street owns the casino, and like a chess master Wall Street will always be many steps ahead of the average Main Street investor’s brain,
as i say most people know more about their car or refrigerator.
Only 21% of 12th graders are proficient in science, so I doubt that
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