A 2005 nationwide survey of adults and high school students
found that many had not mastered the basic economic concepts
they needed to successfully manage their personal finances and
function as informed citizens.
Consider these facts:
- The volume of American credit card lending nearly quadrupled
between 1990 and 2003
- 2005 was the first year since the Great Depression when Americans
registered a negative savings rate, spending more than
they earned.
- In 2000, one half of working families did not own a private retirement
saving account...no 401(k), no 403(b) offered by non-profit organizations,
no Individual Retirement Account (IRA), and no Keogh account for
the self employed.
- Only 23% of those aged 40 to 59, and 17% of those over 60, have
saved one hundred thousand dollars or more for retirement; 13%
of those aged 40 to 59, and 11% of those over 60 say they have
saved nothing at all for their retirement.
The steep rise in credit card debt, short-term lending and personal
bankruptcies in recent years all point to the need for more effective
economic education.
Some basic knowledge of the workings of financial markets and the
fundamental principles of credit and investing are necessary to avoid
the risk of fraud and recognize appropriate investment opportunities
that allow the individual to achieve financial security.
A variety of financial education curricula are now available to
educators, but support and delivery of these materials has been lacking.
