I think that in today’s world financial literacy is more important than ever to financial success in life and yet it seems like many kids graduating high school are financially illiterate. In my opinion everyone should a fundamental understanding of how a savings account, CD account, IRA, Roth IRA, 401(k) and MSA account work. Likewise, everyone should have a fundamental understanding of the equity markets, derivatives markets, futures markets, bond and treasury markets along with an understanding of how interest rates work and their effects on financial instruments like mortgages. Kids should be taught about the various forms of business structures available to them from starting a simple DBA to the numerous flavors of corporations out there. All this can be taught without giving financial advice, which may be more in the domain of parents, but by focusing on the theoretical and historical aspects of financial instruments so that kids have a better understanding of how they work and are better prepared for life in general.
Ask HN: Why isn’t finance a part of the core curriculum at schools?
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Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#2I would argue that most people in life will never even go near the stock market let alone be expected to learn all those different bits and pieces.
How would that help the average high school graduate?
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#3I would argue that most people in life will never even go near the stock market let alone be expected to learn all those different bits and pieces. How would that help the average high school graduate?
More importantly, where are we going to find the time in an eight hour day to teach more things? What is going to get tossed to the wayside?
People have already complained that arts, music, civics, home ec, and trade classes were tossed to the wayside for APs and STEM. What else is left to toss?
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#4From a USA perspective? Universal financial education might make people realize that our explicit racial segregation became implicit economic segregation after the civil rights laws of the 1960s. California isn't expensive by accident :/
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#5I would argue that most people in life will never even go near the stock market let alone be expected to learn all those different bits and pieces. How would that help the average high school graduate?
Finance is more than the stock market. When I took a class on personal finance, I, too, wondered why it wasn't taught in high school. Personal finance gives you a basic grounding in:
- How the economy works and how it affects you
- Income taxes
- Employee sponsored health care plans/FSAs/HSAs
- Life insurance/annuities and health insurance
- Budgeting and cash flow
- How stocks and bonds work
So yes, there is coverage of the stock market, but it is a very narrow slice of the pie when you're talking about an entry level personal finance class.
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#6I would argue that most people in life will never even go near the stock market let alone be expected to learn all those different bits and pieces. How would that help the average high school graduate?
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Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#7I would argue that most people in life will never even go near the stock market let alone be expected to learn all those different bits and pieces. How would that help the average high school graduate?
uhh what do you mean? 401ks and pensions are all invested in some equity based funds, it would be great to understand how the underlying works since it's what your retirement depends on
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#8It is true for Europe too. We are not taught about money in schools. Is is a conspiracy theory? The fractional reserve banking system is what shocked me when I came to watch the money as debt video on YouTube. The more loans you take out to by stuff to impress the people whom you don't like is a live an kicking in the world.
Edit typo
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#9I am a proponent of Personal Finance training at high school. Life would be much more objective for people when they evaluate decisions based on relative benefits they get rather than making mistakes due to emotions.
Re: Ask HN: Why isn’t finance a part of the core curriculum at schools?
#10everyone should a fundamental understanding of how a savings account, CD account, IRA, Roth IRA, 401(k) and MSA account work. Likewise, everyone should have a fundamental understanding of the equity markets, derivatives markets, futures markets, bond and treasury markets along with an understanding of how interest rates work and their effects on financial instruments like mortgages.
How much money do you think most people have? Half this stuff is completely irrelevant to average workers who don't have income to invest in variety or depth.
Sure, basic financial responsibility and options should be core, or near, but beyond that a detailed dive is going to supplant some other core educational area for no obviously good reason.