Financial Literacy - Did You Learn This At School
One of my most enduring memories from high school is that in almost every class I attended, it didn't matter what the subject was, there was always some smarty pants who would say to the teacher "I just don't see how this will help me later in life". Its funny how the teachers never really gave them a satisfactory answer.
It would be quite an experiment, if someone had a record of everything they used in life and which part, if any, came from classes in high school. Maybe the wise-crackers would be right most of the time, but we'll leave that discussion for another day. There are definitely a few subjects which every student could use, and one of them is Financial Literacy. For whatever reason, the principals and education experts have never made this a requirement, though it is hard to think of a better idea.
This subject "Financial Literacy" should teach you about the implications of making a bunch of decisions about your finances. From the simple things, to more complex things. The ultimate purpose of this subject should be to ensure that you are armed with enough financial knowledge, that you won't make the idiotic, financially ruining decisions so many people make every day. I'd see the curriculum running something like this.
Week 1. Avoiding scams. The teacher would deliver a tutorial on avoiding scams that prey on the young and naive.
Week 2. Will you be able to pay back the money you borrow? The second part of the class would help students figure out if borrowing money for business or personal use is a smart idea. Credit card debt, mortgages, and other loans would be discussed. The idea would be to give students a concept of cash flow and how to service a debt, while exploring tax benefits of debt.
Week 3. Asset evaluation. Students will have a chance to evaluate assets. What is an appreciating asset? How is that different from a depreciating one? Earning assets will be covered along with consumables. Defining one's net worth is a series of decisions and students will see which choices will give them hope for the future.
Week 4. How should you invest? The different types of risk involved with any investment would be explored. With so many possibilities for going right and wrong with an investment, students would get an idea about how to spot a dangerous move as opposed to a promising opportunity. Making investments that work can lead to success, and vice versa.
Week 5. How leveraging investments works. Getting into more advanced material, students will learn how investment portfolios use leveraging to their advantage. The tax breaks possible would be included in the discussion, giving students the ability to use the tax code to their advantage.
Final phase. At the end of the course, the student would try and make it all come together. There would be a layout of common mistakes and how to avoid making them. The ways to use the law in your favor and how to protect yourself would be covered. Finally, there would be suggestions on how to work with whatever types of finances you have to create the maximum amount of wealth. - 23221
It would be quite an experiment, if someone had a record of everything they used in life and which part, if any, came from classes in high school. Maybe the wise-crackers would be right most of the time, but we'll leave that discussion for another day. There are definitely a few subjects which every student could use, and one of them is Financial Literacy. For whatever reason, the principals and education experts have never made this a requirement, though it is hard to think of a better idea.
This subject "Financial Literacy" should teach you about the implications of making a bunch of decisions about your finances. From the simple things, to more complex things. The ultimate purpose of this subject should be to ensure that you are armed with enough financial knowledge, that you won't make the idiotic, financially ruining decisions so many people make every day. I'd see the curriculum running something like this.
Week 1. Avoiding scams. The teacher would deliver a tutorial on avoiding scams that prey on the young and naive.
Week 2. Will you be able to pay back the money you borrow? The second part of the class would help students figure out if borrowing money for business or personal use is a smart idea. Credit card debt, mortgages, and other loans would be discussed. The idea would be to give students a concept of cash flow and how to service a debt, while exploring tax benefits of debt.
Week 3. Asset evaluation. Students will have a chance to evaluate assets. What is an appreciating asset? How is that different from a depreciating one? Earning assets will be covered along with consumables. Defining one's net worth is a series of decisions and students will see which choices will give them hope for the future.
Week 4. How should you invest? The different types of risk involved with any investment would be explored. With so many possibilities for going right and wrong with an investment, students would get an idea about how to spot a dangerous move as opposed to a promising opportunity. Making investments that work can lead to success, and vice versa.
Week 5. How leveraging investments works. Getting into more advanced material, students will learn how investment portfolios use leveraging to their advantage. The tax breaks possible would be included in the discussion, giving students the ability to use the tax code to their advantage.
Final phase. At the end of the course, the student would try and make it all come together. There would be a layout of common mistakes and how to avoid making them. The ways to use the law in your favor and how to protect yourself would be covered. Finally, there would be suggestions on how to work with whatever types of finances you have to create the maximum amount of wealth. - 23221
About the Author:
Damian Papworth acknowledges that you don't require mutual fund investments. With some easy investment strategies, you can be your own investment manager.
posted by X - Men @ 6:21 AM
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