Seems fine.
I wonder if we can also teach people delayed gratification. People’s inability to do that is I think a root of a lot of problems.
Well, I’ve called for it on here. Now this’ll put it to the test – we’ll see how Californian students perform before-and-after the introduction of the classes and relative to states that don’t make it part of their core curriculum.
I hope this works.
Skimming their material, looks like it also deals with countering some sales tactics and the like, like companies aiming to exploit fear-of-missing-out to sell product.
I really hope they can get a partnership with a good forecasting app to set these kids up with forever so they can always project their finances and see how their choices affect the numbers
That would be one of the most helpful things to facillitate this
I did that in my high school economics class. I picked a bunch of finance stocks, including Bear Stearns. Then 2008 happened. All I learned was that if you pick individual stocks, you get fucked. For individual investors, the stock market is a scam.
Not so much for stocks, I mean like a better UI spreadsheet client that allows them to go to any period and see ledgers that are intuitively rendered and that lets them sort of experiment with the numbers so they can learn to maneuver things better. Like all their accounts, bills/recurring, paycheques, purchases. All rendered and projected or archived for easy traversal
Its like GTD: get everything out and externalized in an independant system or locus of reference and it takes most of the anxiety and human error out of it
For individual investors, individual stocks are not a worthwhile risk. Buy a broad scale index fund, realize you won’t get rich but you also won’t lose it all, and build for your retirement.
Just not literacy literacy classes.
They have to have 3 years of English
So yeah.
Media needs to juxtapose this news with the latest from Oklahoma requiring teaching Bible in public schools
And Louisiana with the 11 commandments in school right?
I remember my financial literary class. It was part of Home Ec. I think it was one class where we learned how to fill out checks.
It won’t help. The real cause is that public school education is so severely underfunded in the US.
Teacher: “Lesson 1: have more money.”
We had to take that class on our senior year many, many, many moons ago. Back then they taught us that having a credit card was good though. LOL!
Having a credit card is still generally considered good.
Key word is “a”, as in one.
Although you generally are solid in 2 to 4 range, the more important thing as it turns out is (aside from prompt payments) to make sure the credit limit is high. Those store cards with 300 limits are looked down upon.
I have about 10 of them because cancelling is considered bad. I product change to another card when the annual fee hits to avoid it, and generally get a few cards a year to take advantage of bonuses.
They still keep giving me 5 figure credit limits on every one, for reasons I can’t explain
A big ding to your credit score itself is actually a low amount of lines of credit, I think 10+ is considered “good” which is ridiculous
Credit scores don’t measure how responsible with your money you are. They measure how much you’re willing to pay lenders.
My teacher in 2019 tried to convey this to us in economics class too. But to this day I still refuse.
If you don’t have self control, a credit card is a bad idea. If you do have self control, a credit card can make value for you just by spending on things you were already going to buy.
I’m not aware of any harms from using a no-fee credit card that you pay off in full each month. You get 1% - 5% back, and it’s easier to deal with fraudulent charges.
If you have a credit card with a $25,000 limit, that limit counts against your total even if you are not using it. For example, if it is determined that you can sustain mortgage debt of a maximum of $400,000 at current interest rates, you will not qualify for that amount because you also have an open credit card with an available balance of $25,000 at a significantly higher interest rate.
Then decrease your limit, LMAO. It’s not that hard
You fully missed the point. If you read comments around credit cards you’ll see that most people don’t understand the impact of credit cards on their ability to borrow. Yes, if you do not need five cards or $25,000 credit limit (or both), then you should absolutely start closing cards and reducing limits. People don’t understand that. They go buy a car and the loan rate is through the roof. They think that is how it is and never imagine that the rate might have been triggered by the three unused credit cards.
IMHO, you should always have one credit card with a limit just slightly higher than your monthly burn rate. You should use it instead of debit cards, and you should pay it off in full, automatically, every month well before it is due. Only one credit card. Again, just my opinion.
Do you have a source for this? My understanding was only credit card balances mattered.
I have bought and sold over a dozen houses, my credit has been shit and I repaired it, and I have worked for a number of insurance related tech companies that evaluate your credit. What is considered when evaluating your viability as a borrower is your debt exposure. Credit cards are pre-approved debt. If you have $100,000 of combined available credit on credit cards, then you might as well be $100,000 in debt. This is especially true if you got these cards while you were in a higher income bracket than you are currently. If you had a nice job paying $125k but had to move and now make $95k, then those cards might represent a debt burden you might no longer be able to carry. That is a huge ding when being evaluated for credit.
EDIT: By the way, most people also believe that only the outstanding balance is counted. That is true for loans but not for credit cards.
I remember a little while back reading something about how Financial Literacy was introduced as a way for the banks to avoid regulation, pushing the responsibility to individuals rather than face government pressure to change.
I’ll have to look for the article…
