Educating youth on what it means to be financially informed is not on the educational curriculum list in most schools, if any at all. Given the struggling economy, the stock market crashkids money and the job cuts; financial matters are not only in the news daily but weigh heavily on the minds of most Americans. The financial well being of the country is different than it was 20 or 30 years ago. The United States has gone from a bountiful economy where consumerism is a way of life for most, to a country and its citizens now just struggling to stay out of debt. The financial health of the country as evidenced by history, experiences cycles. The difference with the current cycle is that the more advanced we become and the more opportunities for debt that are available- the more dangerous and difficult it is for individuals to dig themselves out of a financial hole. Youth who are not equipped with the tool of knowledge to make informed choices about their personal finances could find themselves in great financial crisis to the point of bankruptcy that can affect their future.

 

Youth today have no formal training in the area of finances. For many kids today their parents also lack either the knowledge or economic stability to provide direction for their children in the area of personal finance. Many Americans have found themselves in financial distress at one time or another. Youth face a number of factors that have the potential to negatively affect their financial futures. Student loans costs are skyrocketing and legislation is pending for proposed changes to the entire industry. In part this legislation came about because some students can’t afford higher education and others are defaulting on student loans. Those who are able to secure educational funding have successfully graduated from college with a degree in hand only to find themselves without job prospects and mounting debt from loans and the interest attached to them. Credit cards have historically preyed on unknowing youth by offering incentives to apply for credit cards. Without reading the fine print some have fallen into the credit card trap and been left with thousands of dollar debt that have followed them well into their adult lives. There is also legislation that will become active in early 2010 that will work to tighten up the management of the credit card industry that has been historically unregulated. This legislation will work to protect future card holders but there is still a personal responsibility that comes with any type of loan or credit that must be realized. These are just a few of the common situations relating to money that make it necessary for our youth to receive training to better manage their personal finances as they reach adulthood.

 

There are a few creative and innovative strategies that have been in the media recently that focus on educating youth about the economy and personal finances. Visa Inc. in partnership with the Federation Internationale de Football Association, which sponsors the World Cup competitions, has developed a video game called Financial Soccer. Financial Soccer was developed using the basic methods and rules of soccer to teach youth the importance of financial responsibility. It is a computer game with varying levels that uses a series of questions that range from simple to complex depending on age. The goal is to help young people learn the financial basics and work to develop good future money habits. The U.S Treasury Department also recognized the need to education youth on finances. The KidCreditSchool.com is an online program launched in 2008 designed to provide education and training online for both kids and parents.

 

These are just a few of the programs that have emerged in response of the identified national need to increase education on the basics that will protect our youth from financial illness. The importance of knowledgeable and financially sound youth is essential for the financial health of the country as a whole.