KEEPING KIDS OUT OF DEBT: TEACH ABOUT MATH NOT MONEY

https://www.debtstoppers.com

Much has been made following the last economic recession about how to educate

consumers and prepare them to avoid debt. More than 43 states have mandated some form of financial readiness courses at the high school

level, and efforts are being made to increase that number.

FINANCIAL EDUCATION FOR KIDS IS IMPORTANT

However, studies suggest it’s not money skills that prepare

students to be future responsible consumers, it’s

math.

“Although there are some commonalities in the clients we help, I can say that financial distress does not

discriminate. I’ve helped individuals and families from all walks of life”

- Robert Semrad, Senior Partner at DebtStoppers and

one of Chicago’s leading bankruptcy attorneys

Many people facing debt and/or foreclosure or bankruptcy are

not even sure how it got to this point, and it’s frequently not a

matter of ‘how’ but ‘why’

TEACH THEM WHY

The studies say the same — teaching the ‘how’ of money, for example, balancing a checkbook or managing a balance sheet (frequent skills learned in financial readiness classes) don’t share with students the context that often trips them up later in life. It’s the ‘why’ they miss—the big picture of how everything fits together.

“State mandates requiring high school students to take personal finance

courses have no effect on savings or investment behavior.”

- Harvard Business School Study

ADDITIONAL MATHEMATICS COURSE IS

KEY

The 2014 study concluded additional mathematics courses are the key. Similar to Semrad’s assertion, it appears the context and principles applied to a financial problem better determine how effective the subject will be at conquering the challenge.

“There are other pressures on young people these days – not least of which are stagnating wages and mounting college

loan debt. It’s definitely not about having or not having individual skills; it’s the

mathematical certainty that more money needs to come in than go out”

- Robert Semrad

“And, when you consider that many people don’t have realistic means of ensuring they can make more money than they need to

survive, they are coming out of high school and college with debt already floating their lifestyles, it’s easy to see that yes, this is something to address in school. We just

need to do it correctly”

- Robert Semrad

TALK TO KIDS WHEN THEY ARE YOUNG

Aside from getting your kids into additional math courses, talking to kids about spending early and at age-appropriate intervals helps. Being a good example and discussing your own challenges can help create a context for kids.

“Many times you see entire families create the same issues for themselves. It’s

important to face your own challenges and let your kids see you succeed.”

- Robert Semrad

TEACH THEM SAVINGS &

HOW TO AVOID DEBT

Teach them the importance of saving and avoiding debt

Critical thinking is key Kids need to learn to

prioritize and do the work needed to be a responsible consumer

Frequently talk about debt and what kind of trouble it creates, how hard it is to manage

IN SUMMARY Financial education for kids is important

Put them in additional mathematics course

Teach them the why of financial management

Talk to kids when they are young

Teach them savings & how to avoid debt

ABOUT DEBTSTOPPER

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When you contact us, you'll receive a free consultation with an attorney — a personal, one-on-one debt evaluation. Our bankruptcy attorneys will listen to what you have to say and determine which solution will work best for you.

If your goal is to be debt-free, but you're uncertain about the best first

step, contact our DebtStoppers Chicago Illinois bankruptcy law firm.

Call us today at 800-440-7235.

KEEPING KIDS OUT OF DEBT: TEACH ABOUT MATH NOT MONEY

https://www.debtstoppers.com