Financial education is something that can benefit everyone, no matter how young. Once a person enters the workforce, they may have to deal with difficult decisions that they would be better prepared for if they learned how to manage money early on.
Close to half of those in their teenage years are not well-educated about financial discipline, a report for TCF Bank conducted by the Opinion Research Corporation noted. Nearly 30 percent of those who were 17 years old explained that they didn’t think they would have the tools necessary to manage finances properly when they left high school.
This could be worrisome to many people, as it can be difficult to get finances right without the proper level of guidance and education on the matter.
“Every high school student, and every adult, should have a firm understanding of money management,” said Tom Jasper, vice chairman of TCF Bank. “This survey demonstrates the urgent need to give young people the tools to better manage their personal finances in order to set them up for a brighter, more successful future. We believe that the more informed people are about money management, the more it benefits them and the communities in which they live.”
Student loans an issue for many Americans
This lack of financial knowledge could put some young people at a disadvantage once they obtain a higher education degree, especially if they are trying to manage everyday bills with student loans. This could call for a revamped financial strategy from these people.
Approximately 17 percent of Americans are dealing with student loans they have yet to pay off, according to a report from FindLaw.com. The majority of the group who had loans still have to pay off less than $25,000, while more than 5 percent explained their debt was upwards of $50,000.
“As the cost of a college education has risen, so has the number of graduates carrying a substantial amount of student loan debt,” said Stephanie Rahlfs, attorney-editor at FindLaw.com. “Ideally, students use their degrees to land well-paying jobs and quickly pay off their loans. But job markets are cyclical and careers don’t always go according to plan. Student loans can be a big financial burden, but there are various options available to those who are unable to repay their loans.”
Less than half of those polled explained they were able to pay off their loans in full, the report added.