Many American households struggle on a daily basis to make sound financial decisions. A large number of them fail and end up on the fringes of financial disaster. At this rate, future generations are very likely to face similar struggles meaning a lot of work has to be done if this gloomy forecast is to be averted. April, being National Financial Literacy Month (#FLM2017), is a good time to assess if we are making any strides towards making sure that our young people will not need rescuing from poverty in their old age.
I believe that a level of financial literacy is necessary in today’s uncertain financial environment. Learning the ABCs of personal finance, the benchmarks by which financial literacy is measured, can go a long way in helping majority of millennials avoid financial missteps while making important financial decisions such as taking on student loans and making retirement plans. While financial knowledge may not guarantee success in life, ignorance about money management, budgeting and other financial concepts often carries a high price.
Financial skills are undoubtedly critical life skills. They should be taught from an early age and honed throughout one’s life. The concern however is, who should be responsible for giving our young ones the much-needed financial education? Should high schools and colleges provide mandatory personal courses or should it be the responsibility of parents to educate their children on financial matters?