Research- Zipemup1

Financial literacy

The American school system is killing students by excluding financial literacy from the regular curriculum. There is no doubt that money is vital to of our society, yet many individuals still lack basic financial knowledge necessary to exist. Millions of Americans are stressed out due to financial illiteracy, which can lead to divorce, suicide, domestic violence, and other illegal activity. High school grads may be able to recite the periodic table but are unable to manage a budget. Schools place a greater emphasis on teaching ideas and concepts than on teaching students how to behave in real-life situations. Instead, children are being taught to memorize and learn scientific and historical topics. When they are exposed to the real world, new grads are pushed to make critical financial decisions without any foundation. This can then lead to disastrous blunders from which there is no going back. In sum, we are hurting as a society more than we know because of a lack of financial education.

Financial literacy in simple form can defined as the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. It seems like a disservice to our children to avoid teaching such an important life skill.

Financial literacy is crucial to our society because it provides us with the information and skills we need to successfully manage our money. Without it, our financial choices and actions, whether taken or not, lack a firm foundation for success. It was found that nearly 70% of millennials are living paycheck to paycheck, which is more than any other generation. For many Americans, living paycheck to paycheck is an uncomfortable financial reality. Many Americans are dealing with this problem for a variety of reasons, the first of which is that they do not manage their spending. They continue to spend money without knowing where it is going. This may be highly damaging to their finances since expenditures accumulate and by the time they realize it, it is too late and they are in debt. Another issue is that many Americans do not make a budget. Budgeting how much you spend in relation to how much you earn will be very useful in the long term. Finally, and maybe most importantly, address your debt. It was revealed that 77 percent of all households had some form of debt. The more your debt, the more likely you are to live paycheck to paycheck. The easiest way to approach it is to start small and work your way up. Overall, the major reason people live paycheck to paycheck is a lack of financial education. If this could be included into our curriculum, many more folks would be able to escape such significant, long-term, and chronic poverty.

A prime and more recent example of Americas financial issues came during the pandemic. When millions of citizens in the United States and throughout the world went into lockdown, it was unavoidable that the economy would suffer. As important as these efforts were in bringing the coronavirus pandemic under control, there was a downside: large swathes of the economy came to a standstill. Because this epidemic is worldwide, the ramifications have also been felt globally. The epidemic revealed the country’s lack of financial education. Covid was an unlucky but necessary lesson for the county. It taught the country the value of having emergency savings. Many financial gurus recommend that each household keep at least three to six months of cash on hand in case of an emergency. Many people are only one automobile accident or one medical emergency away from going into debt. The only reason some Americans were able to keep afloat was because of government help in the form of stimulas payments. Many people would have gone bankrupt if they hadn’t received such help.

The absence of personal financial education in our country has been disastrous. As a society, we’ve watched millions of Americans struggle with their money on a daily basis due to a general lack of financial preparation, only to end up deep in debt. Every day, millions of Americans struggle with their finances. Many Americans are discovering that they are unable to buy houses, save for retirement, or save for their children’s college funds due to student loan debt, huge vehicle payments, and a lack of financial preparation. People are deeply in debt and hopeless. Many of the financial issues that Americans are today might have been averted if financial literacy had been taught in schools. As a result, we believe that more schools should include financial literacy classes as part of their graduation requirements.

Although the benefits of financial education to American people are evident, it is still not being taught in our schools. It has gotten to the point where it appears like the American system was designed to keep us ignorant of the necessity of financial literacy. Our parents are the only ones who have the financial expertise that we require in our daily lives. Parents who are already facing their own financial hardships. It’s like a never-ending loop of financial illiteracy that continues to infect the next generation. Financial education is necessary in our daily lives, and some would argue that it is crucial to our existence. Students are instead preoccupied with the Pythagorean theorem, which I am sure is more important in our daily lives. Millions of Americans continue to struggle financially, yet the issue is being ignored. Financial literacy has other advantages, such as helping a person to be more flexible, decrease stress, and enhance relationships. Personal finance is as much about psychology as it is about statistics. A solid knowledge of financial literacy will enable you to make better financial decisions, which will ideally enhance your day-to-day life. Living over our means may lead to bankruptcy, divorce, and a great deal of worry. Furthermore, the burden of student loan debt might keep first-time homeowners out of the market, dragging the economy down. Meanwhile, living with low debt and a savings cushion might provide you the comfort and peace of mind that comes with being financially free. As a result, financial literacy is more than simply learning how to manage money in order to purchase more things; it is also about learning how to manage money in order to enhance many various parts of one’s life. As you can see, financial literacy is essential for people of all ages. And starting to teach these principles to youngsters can help them form long-term behaviors.

Overall, we can see how financial education may help each individual student with no question. By bringing this issue into the classroom, we can not only assist the economy, but also each individual student. Long term, the financial knowledge offered to children will benefit them in the future and keep them from making costly mistakes. It will also assist future generations of children, who will learn from their financially educated parents.

Economic literacy is the ability to comprehend how finance works in the world, how anyone earns or creates it, how it people maintains it, how it individual investments it, and whether that individual distributes it to benefit others. More specifically, it refers to the collection of skills and information that enables an individual to make informed and productive financial decisions. Financial education refers to a person’s knowledge and awareness of financial issues. Financial literacy is mostly employed in personal business affairs.

When actions based on a consumer’s finances have long-term effects, an individual’s economic growth may be determined by their ability to predict the eventual rate of inflation. According to data, females who were poorer, unmarried, and less educated had greater inflation predictions. People who are more concerned about how they will finance future purchases and costs, as well as the prices they will pay, have greater expectations for inflation, as do those with less awareness of financial literacy.Various studies might identify various motives why consumers have a hard time making financial decisions that will be most helpful later in life. In the context of retirement funds, test results show that self-regulation, potential future direction, etc and better financial education may and will impact a consumer’s intents for retirement funds, such as setting up a 401K in the United States.According to other research, customers who have a greater level of future orientation are more likely to initiate a retirement plan. Financial education and financial orientation toward one’s future, according to studies, can also aid to affect one’s odds of engaging in a 401K plan.

Financial literacy teaches people how to manage money so that it functions the way they want it to. It preaches about the ability to manage money. Maintaining a high level of financial literacy enables people to achieve financial self-sufficiency and stability. It enables a person to create brilliant strategies for earning, spending, saving, and investing. Knowing your money reduces the likelihood of encountering a fraudulent situation. Some techniques are simple to accept, particularly when they come from someone who appears to be well-informed and well-planned. Good financial education skills can assist people in anticipating hazards and arguing/justifying with anyone knowledgeable and well-informed. We only spend what we have on hand with cash – anything more than that, and we simply do not have the money to pay for it. People are no longer bound by the quantity of money they have using credit cards. When used appropriately, credit cards are a strong instrument since they provide a brief loan with really no charge as long even as charges are paid for in full by the end of next month.Credit cards, on the other hand, do not remove money immediately from a person’s account, allowing them to bite off more than they can chew — spending more than they have in the bank. Credit card issuers are also renowned for charging exorbitant interest rates on any outstanding balance that carries over from prior months, which may quickly add up if the payments go unpaid.Most businesses also set a low minimum annual commitment so that their consumers can afford to pay. Paying only the minimum and leaving the remainder to roll over to the following month, but from the other side, beginning a dangerous precedent in that you may spent a next years and decades repaying the loan  and eventually wind up paying more on interest than you did on the initial purchase. 

Although when we have the funds to make our purchases, it is all too easy to slip into the illusion of believing that we are not paying anything. We can see the cash in our checking accounts 24 hours a day, seven days a week, thanks to Online banking. Simply swipe a debit or completing an expensive shopping takes only a few seconds, but without really giving over cash or a check, it may feel like so we’re not spending a penny whatsoever, specially if indeed the sum is modest. Many people get into the problem where these modest sums accumulate up and they discover they have spent more than they planned.This then leads to overspending which can catch up to the user very fast and leave them in a hole.

Credit score, is a gauge as to how likely an individual would be to return their obligations. It is influenced by a variety of criteria, like current net profits, any existing debts, and the user’s ability to repay prior commitments. In general, an individual that owes a large sum of money after the planned payback period would have a low credit rating. Inability to comprehend the concept of credit, as is common in economic ignorance, this might eventually affect your personal finances and severely limit your opportunities.After all, lending institutions would only give loans whether they are confident they will receive it back. Any individual with a credit score of 620 or lower is deemed a credit risk and may be turned down by various lenders. With a bad credit score, it might be challenging to get a loan, register for a credit card, purchase a property, and other things. Others with a bad credit score, on the other hand, are frequently the most in need of financial assistance. Unpermitted lending institutions, on the other hand, impose high interest rates, which frequently worsen the borrower’s financial condition. If a borrower fails to return the principle and interest, the unlicensed money lender may use gangs, intimidation, and violence to demand repayment.

All and all the effect of financial illiteracy can be very taxing on our lives. There are many negatives that can result from the lack of financial education. Incorporating this subject into the school curriculum society can be become better as one. Financial illiteracy can also cause many things like overspending, poor credit rate, debt, and so on. As a society we need to manage our financial situations better so we do not end up in an everlasting hole. Being educated on the topic can create a better society.

Although the idea of adding financial literacy into the curriculum seems ideal for students and their future. Many still believe that it would be a mistake to make it apart of the regular curriculum in schools all across the country.

Some contend that merely including financial literacy in courses is insufficient to prepare students for success in the real world. We continue to educate ourselves throughout our lives by learning new things. Learning basic reading skills, for example, is necessary for being literate. The educational process, on the other hand, proceeds as we widen our vocab, strengthen our reasoning abilities. The same may be said for personal finance. Most families are already familiar with the fundamentals of budgeting, saving, and investing. However, no one is setting aside money in an emergency fund for a rainy day. Continuous attentiveness to financial education is at the heart of financial success.

Personal experience is more valuable to a person’s financial education than any other teaching. Experience, more often than not, is the finest teacher, and life frequently works in this manner. Although it is undeniable that financial literacy in the United States is not where it should be, it is equally true that teaching finance does not guarantee that individuals will be financially savvy. Most would say falling into a difficult situation is the best way to learn financial literacy. A high school class is not the best way to gain financial literacy but in the real world.

Some argue that teaching financial literacy to high school students is a waste of time and money. When kids go to school and are in class, they tend to become lost in their own thoughts and become bored. The majority of the material they were taught throughout their high school careers is forgotten. They would only utilize the information to pass the next test. If students can become bored in a history lecture, they would undoubtedly become bored in a financial literacy class. Passing a financial literacy class with high honors does not make you skilled with money.One of the primary reasons individuals are bad with money is because of their habits, not because they are uneducated. Changing our behavior is important to improving our financial situation. Part of America’s money problem stems from the way we behave, and another part stems from the fact that we don’t make enough of it while the expenses of things like housing, education, and health care continue to rise. Financial literacy will not assist to improve stagnant wages or bring the federal minimum wage, which has stayed fixed for years, up to inflationary levels.

Nowadays, no one understands how to teach financial literacy, and no one is willing to teach it. Experts who teach financial literacy are few as a result of the school system’s lack of modernity. Unfortunately, many instructors lack financial literacy skills and are therefore unprepared to teach it to the next generation of pupils. The educational system is still heavily directed toward courses like math and chemistry, or disciplines desired by post-secondary schools. This makes adding a financial literacy course incredibly difficult.“Teachers feel unqualified to teach financial literacy,” says Julie Heath, director of the Economics Center and economics professor in at the University of Cincinnati. “Eighty-two percent say they are not prepared to teach these concepts, even as over 90 percent of them think they need to be taught in schools.” Just like the rest of the American population some teachers face financial issues as well. To teach such a subject you need to practice what you preach and lead by example. If a teacher is sitting in debt they most likely would not be the best candidate for the matter.

All and all the responsibility of teaching financial literacy should not be held to schools but in the household. In the US roughly twenty five states require some kind of personal finance course before graduating. But still most of the requirements for the classes are minimal. The education provided for these classes is simply not enough for children have a complete understanding of money. The reality is that the responsibility of financial literacy for kids falls squarely on their parents. Parents should be teaching their children basic money knowledge throughout their lives so they are not left clueless when the time comes for them to make crucial choices. Schools should not be left to educate the youth for financial literacy. There is too many holes in the system as well as more significant priorities in their case. The parents need to take charge so kids can have a better future.

In conclusion financial literacy is very essential for the growth of our youth. Without such an important life skill many will struggle to survive.With schools robbing children of this vital knowledge they are unknowingly killing them. This needs to be introduced in every course all across the country. This will create a better future not just for our youth, but for the entire country.


Coleman, Hank, et al. “Why It’s a Mistake Teaching Financial Literacy in Schools.” Money Q&A, 18 Apr. 2019,

Couyoumjian, Cindy. “5 Reasons Why Financial Literacy Is Not Taught in Schools, According to Cindy Couyoumjian.” Medium, Medium, 15 Oct. 2019,

II, Kevin L. Matthews. “Financial Literacy: Why It’s Not Enough.” The Plutus Foundation, 13 Apr. 2020,

“Who Should Teach Financial Literacy to Kids?” Education for Today and Tomorrow | L’Education Aujourd’hui Et Demain, 29 Oct. 2021,

“Why Financial Literacy Isn’t Enough.” Worth, 24 Feb. 2021,

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7 Responses to Research- Zipemup1

  1. davidbdale says:

    It’s not “Works Cited” in APA style, Zipemup. It’s References, centered.

    If you want to rise to the top of the Feedback Please queue, Zip, drop me a specific Reply here describing the sort of feedback that would help you the most. Is it your Argument, your Sources, your Research technique, your Logic, your Rhetoric, your Organization, your Grammar, or something else that you’d prefer to have help with?


  2. davidbdale says:

    Couple things here, in this otherwise quite capable paper I’m reading all the way through just now, Zip.

    1. Purge your writing of the 2nd person. Several instances of You and Your (etc.) in this section violate that principle. Do a global search and get rid of them all.
    2. A mortgage is debt. Rent is not. When you cite the statistic that 77% of households face “some sort” of debt, you might just be saying that they own their own homes.

    Another issue is that many Americans do not make a budget. Budgeting how much you spend in relation to how much you earn will be very useful in the long term. Finally, and maybe most importantly, address your debt. It was revealed that 77 percent of all households had some form of debt. The more your debt, the more likely you are to live paycheck to paycheck. The easiest way to approach it is to start small and work your way up. Overall, the major reason people live paycheck to paycheck is a lack of financial education. If this could be included into our curriculum, many more folks would be able to escape such significant, long-term, and chronic poverty.


  3. davidbdale says:

    Several paragraphs in, Zip, I’m still waiting, as any thoughtful reader would be, for the evidence that a LACK OF FINANCIAL EDUCATION is the cause of the problems you suggest plague most Americans. Debt is quite common, and it doesn’t necessarily indicate ignorance. The most convincing argument you’ve offered so far is the claim that the pandemic put a serious hurt on families who lost jobs, etc. There must be excellent data on this, but you cite none. Even if you cite it, the most it will prove is that families are not well prepared to weather a prolonged global catastrophe. The better evidence would be (and you mentioned it before without proving it) that even in good times, when two jobs provide substantial income, Americans are not saving even a little bit to protect against tiny disruptions. That’s WAY more damning than that they can’t weather the apocalypse.


  4. davidbdale says:

    You appear to be arguing against your core message here, Zip:

    Our parents are the only ones who have the financial expertise that we require in our daily lives. Parents who are already facing their own financial hardships. It’s like a never-ending loop of financial illiteracy that continues to infect the next generation. Financial education is necessary in our daily lives, and some would argue that it is crucial to our existence.

    A cycle would naturally follow if the parents, too, lacked financial literacy. But if you claim they “have the financial expertise” they need, where did the problem start? Did we USED TO teach finance to schoolkids and stop?


  5. davidbdale says:

    Also, 6 paragraphs in, we still don’t know quite what you mean by financial literacy. You suggest that it’s more of a discipline than actual intelligence. Keep debt low. Spend within a budget. Is there anything further in your definition you’re not sharing?

    It COULD MEAN awareness of the differences between types of debt. It could mean knowing the differences between types of mortgages or insurance policies. It could mean recognizing the disastrous consequences of “making the minimum monthly payment” on revolving credit card accounts. It could mean knowing how to negotiate terms with investors on a business startup! What do YOU mean by it?


  6. davidbdale says:

    Your paragraph 9 takes a stab at what I begged for one Reply above, but it’s SO VAGUE it doesn’t begin to place the blame on schools’ failure to educate. And at this stage of the paper, we’re all wondering “where’s the beef?” You haven’t cited a single compelling source that makes a persuasive numerical claim about anything.

    RESEARCH papers lean heavily on their research.

    We look to your References and can’t help but notice that, of the five sources you reference, four of them argue AGAINST the efficacy of financial literacy education.


  7. davidbdale says:

    I won’t say more about the rest of the individual paragraphs, but your cogent and respectable explanation of credit card debt (paragraph 10) could be handled in half the space, and much more convincingly, with a single vivid illustration. Do you have this in your arsenal?

    I make a $100 purchase on my credit card that charges 22.9% annual interest and make the minimum payment until the debt is paid. How long does it take to pay off the $100? What will I pay in the long run?


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