As Foreclosures Are Making our Financial System Crumble it Is Time for Mathematics
July 2nd, 2009
As foreclosures are making our financial system crumble it is time for citizens to brush up on their mathematics.
Howard Quinlan is living through these difficult times in St. Paul and feels that there is no point in sheltering the kids from money talk. He has four children and has opened bank accounts for them at an early age. They have been taught how to use the ATM in a balanced responsible manner. Above all he has inculcated in them the value of saving for a rainy day.
Nevertheless some gaps are still there. Quinlan is in sales attached to a financial firm. He said, “It hit me a year ago when I asked my teenage daughter how she thought policemen and firemen got paid. She was puzzled.”
The present crisis has just brought home the fact that for quite many years the Americans were weak in understanding the basic fundamentals of financing and budgeting. It is never too early to learn how to balance the income with the expenditure. The Advisory Council on Financial Literacy of the President has laid great stress and made it compulsory for all the schools to impart this type of education starting from kindergarten up to 12th grade.
Minnesota Legislature is passing a bill that would make it compulsory for students to take at least one financial subject before they are allowed to graduate. The goal is big but with modest funds it is difficult to envisage the realization of these targets. But the advocates are stressing home the point everyday about the importance of this type of literacy against a background of increasing foreclosures and foreclosure scams.
Ted Beck of National Endowment for Financial Education is a member of the advisory council of the President. He said “The current financial issues have driven home the need for informed consumers. We will have stronger attention paid to sound financial (institutions) but we still need good education to make sure people don’t fall into traps.”
Currently a survey taken has shown that the majority of the young adults aged between 23 and 28 are today very much concerned about their financial future. Given the circumstances this is not a surprising trend. These youngsters are loaded with debt amounting to $14,000. Only one manages to clear their credit card dues each month. One out of ten does not even possess a cheque book.
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- Lenders Being Legally Challenged for Activating Predatory Lending
- Foreclosures Have Made Life for CEO’s Expensive and Fraught With Fear
- With Foreclosures and Unemployment Continuing it is Doubtful if Recession is Over
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