Can personal finance education assist in preventing another crisis?

The concept of letting children learn about personal finance the hard way might have been a contributing factor in the financial turmoil, some say. Generations of Americans were raised to be financially illiterate and turned loose upon the world. Making proficiency in individual financial mandatory is increasingly reviewed as the nation reevaluates training within the aftermath of the financial crisis. Post resource – Teaching personal financial literacy in schools an uphill battle by Personal Money Store.

A financial reform is in place

Educating on finances is an integral part of the 2010 financial reform law. An Office of Financial Literacy was formed with the law. Through online tools and educational programs, The Office of Financial Literacy will supposedly try to make it easier for teachers to educate students about personal finance and for consumers to educate themselves about money management.

There is expected to be a good public opinion of this program

The private sector is recognizing the glaring need for financial literacy education as a PR opportunity. One company has gotten on board already, Genworth Financial, which is doing what it can to educate personal finances in over 300 high schools across the country. Earlier this year Visa, Inc. introduced “Financial Football,” a free online game that teaches children about money using personal financial decisions to influence the outcome of football action. Additionally, American Express began a site called "Currency" in their attempt to help the financial problems in our country.

School programs already in play

When it comes to financial literacy education in schools, teachers have their work cut out for them, according to Dan Kadlec at MoneyWatch. According to Kadlec, teacher approached him at the Financial Literacy National Educators Conference in D.C. and stated that they only teach what is on standardized tests. Most all of the standardized tests required for students and schools don’t contain anything on financial literacy.

Articles cited

MoneyWatch

moneywatch.bnet.com/saving-money/blog/bank-dad/financial-education-at-school-is-it-a-pipe-dream/407/

Sacramento Bee

sacbee.com/2010/11/08/3168061/unstable-economy-requires-new.html

PR Newswire

multivu.prnewswire.com/mnr/genworthfinancial/43291/