Comments on: Personal Finance Version of “Scared Straight” for Teens

By: Jen

Jen — Fri, 09 May 2008 16:26:59 +0000

And personal finance education could so easily be incorporated into math and home ec classes!

I was lucky in that my family not only knew how to handle money but they talked about it. So by the time I graduated college I had a good basis. I still ran up credit card debt, but I knew what I was doing wrong and I was still well under the national average for debt. But, I also opened an IRA when I got my first job and I signed up for the 401(k) plan.

In contrast, I had to explain what an IRA was and why it’s a good idea to my friends who were the same age as me and had also gone to college. They simply didn’t know, because no one had told them.

While telling children everything, especially the wrong stuff at the wrong age, isn’t good, overprotecting is also bad. I think knowledge is power, and knowing the honest truth about money helps demystify it.

By: Mrs. Micah

Mrs. Micah — Thu, 08 May 2008 23:28:20 +0000

That’s a fascinating idea. Parents try to shield kids from the negative consequences of their bad financial decisions. Which is probably a good thing, since it’s not good for kids to grow up scared where the next meal is coming from. But that also means they probably don’t properly connect their parents actions with the real consequences.

I don’t think scaring straight works for crime, but I think it might work for finances.

By: Dewey

Dewey — Thu, 08 May 2008 23:10:11 +0000

I know from experience that our school system is way behind on topics such as credit and personal finance. I own a company called Early Bird Credit Training here in MA. Convincing schools that their students need credit education is impossible. Half of the time they donâ€™t even know what youâ€™re talking about. We need some progressive thing in our school system if we are going to compete economically with other growing countries. Do you think China is using the same education platform as they did fifty years ago? We are! Check out http://www.EarlyBirdCredit.com there is more info on teaching young adults about credit.

By: Wil

Wil — Thu, 08 May 2008 19:50:26 +0000

This is awesome! This is way better than having a bank salesman come in to sell product to a captive audience.

Thanks for pointing this out!

By: Matt

Matt — Thu, 08 May 2008 17:12:10 +0000

Good to hear that they’re starting to do something about the huge education gap when it comes to money. Unfortunately I think a lot of that education will still come from the parents and how they spend their money. If the parents live from pay to pay the kids are that much more likely. But more education in this subject area never hurts.

Though I have to say had I been given a course on what my finances might look like if I wasn’t careful I would have benefited greatly.

By: Lazy Man and Money

Lazy Man and Money — Thu, 08 May 2008 06:17:49 +0000

I think Boston Gals Open Wallet wrote about this article as well. I love the idea of getting to students early.