By Eric Reich
Did you know that April was Financial Literacy Month? Even though it might not be a particularly exciting topic, financial literacy is arguably among the most important things you’ll ever learn in life. I’ve learned a few things in school that, as suspected at the time, I’ve never used again. Money is not one of those things. I use or think about money every single day. The average person worries about money six times a day! Americans spend an average of 54 minutes every day managing their finances in some way. I don’t believe I’ve spent 54 minutes in my life thinking about geometry, but I digress.
So, we know that financial literacy is important, so what’s the problem? The problem is that 17% of high school students report taking a financial literacy course. More than 40% of college students are considered financially illiterate. The problem does not lie with the teachers, as 89% of teachers polled believed that financial education is crucial and should be required for high school graduation. Though many teachers feel that their own financial education is limited, I believe teachers are up for the job. They deal with their own finances every day, and they have what I call “the gift”, which is a natural ability to teach others, something most of us struggle with.
If teachers want to teach it, and schools want it taught, then why aren’t kids learning about finances? For starters, the list of things being thrust upon teachers to teach kids is ever-expanding. Teachers are constantly asked to do more with less. School budgets are being cut all the time, and often at the expense of crucial topics. Limited access to financial education resources adds to this ever-growing problem.
The good news is that today, half of the states require schools to offer personal finance courses. Financial education courses are becoming more plentiful and of better quality than they were a few years ago. However, we can’t dump this onto already overburdened teachers.
One answer to help in solving the crisis is the use of outside instructors. I’ve taught financial literacy in several different schools with plenty of positive feedback. Getting experts in the community to help teach these topics can help schools reduce the burden of it falling on them. Best of all, it’s free for the schools (read taxpayers). I’ve talked with countless colleagues in my industry who would line up to help.
Here is my offer to help start to solve this crisis. I will teach any classroom in the area at any grade level, about financial literacy. I know others would too, so don’t hesitate to reach out to those you know in my profession and ask them for help. If they can’t do it due to their own constraints, just let us know and we will come do it. This is too important not to do. We must solve this crisis and solve it soon. If we don’t, future generations will suffer.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
