News: Students in the U.K. Must Study Personal Finance

POSTED BY Bond Bhai ON March 21, 2013 4:36 pm COMMENTS (2)

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Bold New Rule: Students in the U.K. Must Study Personal Finance

If only our Govt. thinks of something like this! But they probably won’t, because if they do then whos gonna invest in dirty complicated products!! 

Some snippets : 

“Including financial education in the official school curriculum is considered one of the most efficient and fair ways to reach a whole generation on a broad scale. In addition, since the curriculum spans several years and can start as early as kindergarten, it is a unique means to inculcate and nurture a more sound financial culture and behaviors among future adults. This is especially critical since parents are unequally equipped to transmit to their children sound financial habits.

 

According to the Brookings study, among individuals past the age of 50 only half could correctly answer this question:

“Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow: more than $102, exactly $102, less than $102.”

 

2 replies on this article “News: Students in the U.K. Must Study Personal Finance”

  1. Dear Bondbhai, what about the scandals of LIBOR fixing & Gold rate fixing in London?

    thanks

    Ashal

  2. Ramesh says:

    It is in general a wasteful expenditure, which is why it has not been adopted in general.

    Our country has different issues. We are still struggling with providing basic literacy to our population. These things are not required at all.

    By the way, the question asked was a simple compound interest question, and everybody is supposed to learn that in middle school, if not earlier. If people do not know that, a separate financial course will not be very helpful either. 😉

    Check this out, why financial education is not supposed to help.

    http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=565

    http://www.brookings.edu/~/media/research/files/papers/2010/10/financial-literacy-gale-levine/10_financial_literacy_gale_levine.pdf

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