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Question for you: why does financial literacy fail?

3 November 2009 1 views 223 Comments

I’ll be speaking on Thursday at the Massachusetts Association of Student Financial Aid Administrators annual conference on the topic of financial literacy, but wanted your take: why do financial literacy efforts fail?

Leave your thoughts in the comments!

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223 Responses to “Question for you: why does financial literacy fail?”

  1. mirandamckennitt says on November 3, 2009 at 4:24 am:

    It may be because of training in the early education. To be good at finances you must be at least OK in mathematics, especially formal logic and arithmetic, same thing that applies to computer science. In most educational facilities these are taught very badly, making pupils afraid to ask questions, to expand knowledge in this area. In result when you propose a basic financial problem to a pupil later she will be confused with the amount of mental power she has to invest to solve the problem and in consequence avoid this kind of problems even more. This creates a fallout result, which later results in economic bubbles and people falling for schemes.

  2. mirandamckennitt says on November 3, 2009 at 4:24 am:

    It may be because of training in the early education. To be good at finances you must be at least OK in mathematics, especially formal logic and arithmetic, same thing that applies to computer science. In most educational facilities these are taught very badly, making pupils afraid to ask questions, to expand knowledge in this area. In result when you propose a basic financial problem to a pupil later she will be confused with the amount of mental power she has to invest to solve the problem and in consequence avoid this kind of problems even more. This creates a fallout result, which later results in economic bubbles and people falling for schemes.

  3. mirandamckennitt says on November 3, 2009 at 4:24 am:

    It may be because of training in the early education. To be good at finances you must be at least OK in mathematics, especially formal logic and arithmetic, same thing that applies to computer science. In most educational facilities these are taught very badly, making pupils afraid to ask questions, to expand knowledge in this area. In result when you propose a basic financial problem to a pupil later she will be confused with the amount of mental power she has to invest to solve the problem and in consequence avoid this kind of problems even more. This creates a fallout result, which later results in economic bubbles and people falling for schemes.

  4. mirandamckennitt says on November 3, 2009 at 4:24 am:

    It may be because of training in the early education. To be good at finances you must be at least OK in mathematics, especially formal logic and arithmetic, same thing that applies to computer science. In most educational facilities these are taught very badly, making pupils afraid to ask questions, to expand knowledge in this area. In result when you propose a basic financial problem to a pupil later she will be confused with the amount of mental power she has to invest to solve the problem and in consequence avoid this kind of problems even more. This creates a fallout result, which later results in economic bubbles and people falling for schemes.

  5. Dave Wirsching says on November 3, 2009 at 4:53 am:

    Having worked around consumers in the past as a title insurance agent, I've come to believe that financial literacy depends on a solid foundation in basic mathematics.

    True literacy doesn't have a chance because so many consumers lack the basic basic math skills required to understand the details of the financial transaction. Its like trying to read without understanding the alphabet. For example APR is mystifying if you don't understand percentages. Its how we get college grads who can't compare credit card offers.

    For literacy to evolve we have to ensure students have the right math skills when they leave primary, not secondary education.

  6. Dave Wirsching says on November 3, 2009 at 4:53 am:

    Having worked around consumers in the past as a title insurance agent, I've come to believe that financial literacy depends on a solid foundation in basic mathematics.

    True literacy doesn't have a chance because so many consumers lack the basic basic math skills required to understand the details of the financial transaction. Its like trying to read without understanding the alphabet. For example APR is mystifying if you don't understand percentages. Its how we get college grads who can't compare credit card offers.

    For literacy to evolve we have to ensure students have the right math skills when they leave primary, not secondary education.

  7. Dave Wirsching says on November 3, 2009 at 4:53 am:

    Having worked around consumers in the past as a title insurance agent, I've come to believe that financial literacy depends on a solid foundation in basic mathematics.

    True literacy doesn't have a chance because so many consumers lack the basic basic math skills required to understand the details of the financial transaction. Its like trying to read without understanding the alphabet. For example APR is mystifying if you don't understand percentages. Its how we get college grads who can't compare credit card offers.

    For literacy to evolve we have to ensure students have the right math skills when they leave primary, not secondary education.

  8. Dave Wirsching says on November 3, 2009 at 4:53 am:

    Having worked around consumers in the past as a title insurance agent, I've come to believe that financial literacy depends on a solid foundation in basic mathematics.

    True literacy doesn't have a chance because so many consumers lack the basic basic math skills required to understand the details of the financial transaction. Its like trying to read without understanding the alphabet. For example APR is mystifying if you don't understand percentages. Its how we get college grads who can't compare credit card offers.

    For literacy to evolve we have to ensure students have the right math skills when they leave primary, not secondary education.

  9. nevilles says on November 3, 2009 at 5:08 am:

    Everyone wants a high credit score but nobody wants to learn how to properly use it. There is a disconnect between life views as a subsidized student and life views as a finacially independent professional. Most students have a “I'll worry about it when I get there” kind of attitude. Financial Literacy should be incentivised. Make consumer education a component of a person's credit score, the higher you test, the better consumer you'll be, it makes sense.

  10. nevilles says on November 3, 2009 at 5:08 am:

    Everyone wants a high credit score but nobody wants to learn how to properly use it. There is a disconnect between life views as a subsidized student and life views as a finacially independent professional. Most students have a “I'll worry about it when I get there” kind of attitude. Financial Literacy should be incentivised. Make consumer education a component of a person's credit score, the higher you test, the better consumer you'll be, it makes sense.

  11. Austin says on November 3, 2009 at 7:01 am:

    I believe that kids often use their parents' financial habits as a basis for their own actions. You learn what you see everyday.

  12. Austin says on November 3, 2009 at 7:01 am:

    I believe that kids often use their parents' financial habits as a basis for their own actions. You learn what you see everyday.

  13. Austin says on November 3, 2009 at 7:01 am:

    I believe that kids often use their parents' financial habits as a basis for their own actions. You learn what you see everyday.

  14. Austin says on November 3, 2009 at 7:01 am:

    I believe that kids often use their parents' financial habits as a basis for their own actions. You learn what you see everyday.

  15. katiekxc says on November 3, 2009 at 7:03 am:

    Lack of mathematical/monotary knowledge, maybe.

  16. katiekxc says on November 3, 2009 at 7:03 am:

    Lack of mathematical/monotary knowledge, maybe.

  17. katiekxc says on November 3, 2009 at 7:03 am:

    Lack of mathematical/monotary knowledge, maybe.

  18. katiekxc says on November 3, 2009 at 7:03 am:

    Lack of mathematical/monotary knowledge, maybe.

  19. ldy6199 says on November 3, 2009 at 7:08 am:

    I think it fails because people don't know the correct way to apply for financial aid and how to use it. if more seminars were held explaining how to use it properly more people would see how much it can really help students planning on attending college.

  20. sky665 says on November 3, 2009 at 7:38 am:

    It's always just hard to educate others on topics that aren't that interesting to them, or hard to comprehend at first. People today want a fast and simple way of learning and doing things.

  21. sky665 says on November 3, 2009 at 7:38 am:

    It's always just hard to educate others on topics that aren't that interesting to them, or hard to comprehend at first. People today want a fast and simple way of learning and doing things.

  22. sky665 says on November 3, 2009 at 7:38 am:

    It's always just hard to educate others on topics that aren't that interesting to them, or hard to comprehend at first. People today want a fast and simple way of learning and doing things.

  23. sky665 says on November 3, 2009 at 7:38 am:

    It's always just hard to educate others on topics that aren't that interesting to them, or hard to comprehend at first. People today want a fast and simple way of learning and doing things.

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