DOES FINANCIAL LITERACY WORK?
Updated: Feb 12
North Carolina recently became the 20th state to require passing financial literacy in order to graduate high school. As someone who eats and breathes financial literacy this is great news, but there is caution. Over the past eight years I have spoken in front of 70,000 students around financial literacy and I know many of them came from states with this requirement. Many of them are part of the $1.6 trillion dollar student loan debt. So I want to share how North Carolina can make sure financial literacy works for their students!
Many people blame colleges for the student loan debt and maybe some blame goes there, but in the 19 states with financial literacy what is being taught to keep students out of student loan debt? Close to nothing. Instead they are being taught about credit, mortgages, investing and other topics that are not relevant to them right now. Show students how to get scholarships and attend colleges they can afford. Start them on the right foot after high school.
Be In The Now:
With this financial literacy requirement you not only have the opportunity to improve the financial wellbeing of high school students, but also the wellbeing of their households. In order to do that the curriculum must have material covering strategies on how the student can help bring money into a household. Not by getting a job, but by cutting back and using social media to their advantage. Showing them how to use their hobbies to make money and save that money for the future.
Future of NC Depends On It
50% of college graduates plan to move back home. This means if the new financial literacy requirement is not effective or engaging North Carolina can expect residents deep in debt and not contributing to the state economy or their local economies. They will not be buying homes, cars, furniture, goods, and services. In other words the future North Carolina economy will suffer.
North Carolina has the opportunity to show the rest of the country how to make financial literacy not only work, but create financial freedom for it's residents for generations to come!
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