So, what concepts would you include in a high school "Practical Personal Finance" Class?

[Godhumor]

Talking about your own thoughts on what is actually important in understanding how to work with money day in and day out. If you think a school district has already hit the right balance for such a class, feel free to link to the syllabus, standards, etc.

Anyway, today's economic climate has, in my opinion, made extremely clear that at least one semester of practical (i.e. not theory) finance should be required at some point before high school graduation. From my own experience, I would like to see such classes teach:

- How to balance a checkbook

- How to create a budget

- How interest works in both savings and debt

- Amortization of loans

- Credit cards (both risks and uses)

- Various savings instruments

- Fixed rate vs. variable rate loans (Pluses and minuses along with what things like "Balloon Payment" mean)

- Time value of money (Present value, future value, etc.)

- How payroll, federal, and state taxes work


What else?

[No.23]

1. Don't forget...

how to print fiat money out of thin air...

and how to spend now and have your children pay your debts off.

[exboyfil]

22. In addition to what is being taught how it is taught is also important

The problem you will have is the ones who already don't take education seriously are the ones who are most needed to be reached. I think simulations would be important as well as exploration of career options (in this regard you really need two courses). A career options course sometime in the 7th grade when a student still has a chance to do something about their future and another personal living course in 11th/12th grade.

Simulations of individuals pursuing various degrees/work occupations and how their finances ultimately end up. Throw in simulations of what happens when kids are born (especially early). Case studies would also be effective.

[Common Sense Party]

2. Along with future value and compound interest...a demonstration of what

$50 a month into the S&P 500 over 50 years would have grown to.

Basics of how 401(k) plans work.

[leftstreet]

3. How to organize your fellow workers! n/t

[grasswire]

4. how the student loan programs work...

....and how that debt will be carried for a long, long time. IOW, don't incur massive debt preparing for a low-paid career.

[sandnsea]

6. Now that is the truth

Nothing makes me angrier than to see someone spending several thousand dollars to get a $10 hr job. What the hell is that about and how did that happen anyway.

[sandnsea]

5. My kids all had that

Are there really high schools that don't have personal finance, living skills, something like that, in the senior year?

This is kind of like the clinic in every major city suggestion, we already have it.

If your city, districty, county, *doesn't* have these things, then we need to organize and help make it happen. I have thought for a while that successful school districts need to "adopt" troubled districts so we can identify what's missing and help rattle cages and get things done.

Do you know if the high schools in your district offer these programs? Do you know if they were cut due to budget constraints? Do you know how much the per pupil is in your district and the average in your state?

[Godhumor]

10. It varies by county and school district

I don't know of many districts that require a personal finance course, as there is a belief that one semester of economics covers the necessary knowledge on money for graduation. As a result, most districts would offer the class as an elective and that can be pretty hit or miss.

Back when I taught, I worked in one school with a full-fledged business department that had a wide variety of courses for high school students. On the other side, I worked in a school in inner city DC where one day was spent on how to properly fill out a check (seriously) in a technology class.

[sandnsea]

12. Gosh, that's why I asked about Your district

Things have changed. Personal Finance, Life Skills, it has various names - IS a required course in many school districts now.

It doesn't do any good to tell somebody about a good idea if you don't tell them how to implement the good idea.

[Godhumor]

13. I was looking for personal opinions as to what people thought was important to learn

I just did so in the framework of creating a hypothetical class.

As for answering your question specifically, http://www.jumpstartcoalition.org/ has been around for awhile as the advocacy group for requiring classes in every state.

[yewberry]

7. What is a credit score?

-How to find that information
-How it is used, and by whom

-Basic bank procedures (timing of debits & credits, holds, "overdraft protection," etc.)

-How "payday loans" work and the danger they can create

I'd also think hard about the "how to balance a checkbook" material--I think most people now use some variation of online banking, and so the process is more about tracking transactions and understanding holds / available balance.

I never had that kind of education. It would have been useful.

[Godhumor]

9. I meant how to balance a checkbook as a catch-all term

For reconciling expenditures, etc.

Definitely agree on the FICO material and basics of banking.

Maybe payday loans could be folded into a section on short term "quickie" loans with ridiculous APRs?

[yewberry]

15. Yeah, definitely.

You could fold payday loans in with overdraft protection--but I might head those under "predatory lending" and include information about that industry, like recent legislation about predatory lending practices, restrictions, and recent legislation.

edit: maybe overreaching, but maybe include some math re: lotteries? I always feel a little sick seeing people in my poor neighborhood buying lottery tickets...

[No.23]

17. Credit scores are a leash...

that financial institutions use to keep our consuming conduct under their control.

THe funny things is, many of us enjoy being leashed.

[Oregone]

8. Risk vs Profit in investing

And extrapolate on long-term vs short-term investment models.

Too many people think money is free, cheap, easy, and quick.

[ColbertWatcher]

11. Excellent idea. k+r, n/t

[LuvNewcastle]

14. Title loans, pawn shops, and casinos

:P

[omega minimo]

16. Feminism

:thumbsup:

[murielm99]

18. Insurance.

They need to know about automobile insurance. Most kids want to purchase a car yesterday.

They should know about other types, too, such as health insurance and life insurance.

If they are going to rent an apartment or buy a home, they need to know something about that type of insurance, too.

They need to know about liability and deductibles. Do most students have any concept of what those two things mean?

[mia]

19. Child support laws

Kids should know about their financial responsibilities.

[physioex]

20. Lots of Great Ideas....

Also discuss the importance of saving. Talk about pifalls of Payday Loan services.

[Hekate]

21. How many roomies it will take to pay rent on their first apartment at min wage...

Cost of living issues such as that for a young person starting out: rent, utilities, food, car, entertainment.

All the previous suggestions are also very good; I just remember this was the first thing I tried to figure out when I was planning to move out of my parents' home, because I didn't plan on moving back in once I left. They taught me so little about money beyond how to open a savings account for my babysitting money. In our home, the answer to every financial question was, "We can't afford it."

There was no such class in my high school in 1965, and it would have been very helpful.

Hekate

[RagAss]

23. Find out what the rich support...then go the other way !

[End Of The Road]

24. And for extra credit...

Please have someone do a class report on the Fair Labor Standards Act -- your rights in the workplace to be paid overtime.

Too many bosses and managers (young ones, small companies, mostly) think they can force their employees to work overtime. I've seen it time after time.

One of the young girls in my office has been forced to work close to 100 hours overtime in the year that she has been with the company. Not being paid for that is a pretty basic issue when it comes to personal finance.

(BTW, I'm trying to fix it, have brought it up with the boss on her behalf, he threatened to fire me.)

[annabanana]

26. You are a good person. I hope that girl

is looking for a more equitable workplace (you too!)

[Nay]

25. Teach the difference between "needs" and "wants." Lots of ppl

REALLY don't get that, and it leads them astray.