We may end up voting on a November proposition that would require a one-semester high school class in financial literacy.

Seems there is concern that there is not sufficient knowledge of personal finances for high school students. If this passes, the idea is that high school students would learn about paying for college, online banking, taxes, credit cards, retirement savings, the stock market, etc.

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(2) comments

HFAB

Civics, finances, and media, yes! Hoping history is thrown in there as well with the media component. It definitely would be enlightening for young people to find out just how much they are likely to earn in future occupations, and how likely it will be to actually save or invest so they can buy a home, anywhere, on those salaries.

Lou

Financial literacy is extremely important, and the younger the better. However, what concerns me about this subject being taught in school is that big mistakes can be made by students based on wrong information from the teachers. I cannot think of another subject that could be so dangerous.

Examples:

(1) Your previous column referenced in this article states "Eliza Maier, a senior, was so inspired by Rigley’s class that she opened a Roth IRA when she turned 18 and transferred money from her low-interest savings account. The class, she said, helped demystify money and the role it can play in major life choices." Truth is, one cannot make a contribution to Roth IRA without EARNED income equal to at least the amount of the contribution. In other words, money cannot be transferred to a Roth simply from the savings account as you mention. Unlawful and penalty would apply.

(2) I personally experienced a case where family member encouraged nieces to borrow huge amounts of money for college education. The girls quit college and then were strapped with huge college debt without a job. This type bad advice that could have come from schools also.

Also mentioned in your articles is that the ole 'fashioned way was to learn at home growing up. That's the safest way, if possible. Encourage self-education and Warren Buffett's .... stay out of debt.

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