All Forum Posts by: Scott Trench

Yes, personal finance should be taught, however, grade school is getting a little ahead of things, the math skills aren't there yet to go into evaluating opportunity costs, differences in interest charges or the maturity to concepts of priorities of a car payment or insurance or rents or life insurance, I doubt the average 6th grader would get it.

Simplistic ideas of products, costs, profits and business should be taught, from the time they are old enough to have a kool aid stand.

I'm speaking from a position of teaching the subject, elementary school is pretty objective, facts are taught, business and finance quickly get into subjective thinking which really isn't developed as to making choices until the 7th and 8th grade as well as the math skills needed to apply concepts.

Personal finance includes understanding investments vs savings, a 5th grader can get savings, but not yields of mutual funds, IRA advantages, what types of risks should be insured and why, comparing insurance, how and when to borrow......heck, we have adults who can't get it and why it should be required in high school.

I'm not sure there would be enough basic information that could make up a class for 45 minutes 3 days a week ( like my Spanish class) over a school year.

IMO, the introduction should begin at the 7th grade.

AND!!!!!

Can you believe it, some kid can go to medical school and never have to take a finance class! Dentists and young doctors are the favorite targets of insurance salesmen, stock brokers, Realtors and others selling financial products, and unless they took some classes as electives, they are on their own.

It doesn't matter what your kids end up doing, wealth can be built over time from almost anything, the key is in making good personal finance decisions, if you can't do that you're sunk regardless of what you do. :)    

I think it's a good idea, but not at all hopeful about its successful implementation in our government schools. 

I do think parents should teach their kids personal finance and investment.  I'd add innovation and entrepreneurship. When they aren't giving out jobs, create your own.  Better yet, create 10 jobs. Give your kids a huge advantage. Don't have the knowledge yourself?  Well, there are these useful inventions called books and the Internet.  Embrace websites like BiggerPockets. Learn together.  

It wasn't until I was a college graduate that a guy I just met white boarded the rule of 72 for me. Epiphany.  Do this for your kids. Makes math more fun. 

I have lost any hope in today's US school system: 30+ kids in a class,  teacher's unions, "no child left behind", "Common Core, a.k.a. rotten to the core" and $250k student loans - pick your poison.

Today's parents are too lazy to spend time with their kids so they try to offload their parenting responsibilities to the schools. If you want to teach your kids the things that are important to them - you have to do it yourself. Please spend 30-60 minutes a day reading and discussing economics with them. There are plenty of good books out there that with your help can be very beneficial to your kids.

I have started my kids at age 8 with books like "How the economy grows and why it crashes", The Uncle Eric series (Whatever happened to penny candy, the money mysteries, etc.) and now at age 9 we are reading Rich dad poor Dad. They enjoy our reading and discussion time and get disappointed when we have no time due to school activities.

Don't cop out, do it yourself. 

1st reaction is that it's a great idea.  2nd thought is that the public schools would never be willing or able to deliver a useful education in finance.  I'd bet they'd do more harm than good.

HI Scott,

I was a computer science major turned finance as I found my calling but still an engineer at heart.

The problem is in school they only teach the fundamentals of finance and theory (time value of money, real rate of return, cap rates, arbitrage, velocity of return, options, stocks, derivatives, and etc). This stuff is great but I think what was missing was how to link these concepts in a way that would be applicable to different stages of a persons life. I often thought of this as well and how I would impart this information in a meaningful way to others who were younger allowing them to get a head start in life. 

The problem is the curriculum never taught what money is, the history, practical application, and how the flow of money (currency) & regulation of the financial system can be used to manipulate the value of assets causing more violent boom/bust cycles than if it was left to a more lassez faire type market.

@Scott Trench  I talk about our rentals to my daughter who is 13, she knows I believe people who can and do develop good credit can have more opportunities because their cost for money is less.  She knows we work hard and hope she will too so her life will be easier than ours was starting out.   I have talked to her about understanding costs for simple things like using an atm when you take out $20 and have a $2.50 atm fee vs. using your bank without fees or if it is not an option take out $200 if you can stretch it over a longer period so your cost for the funds is lower.

She knows I believe in saving for what you would like to have and don't buy it if you don't have the money or don't need it.

I think financial education is important and comes from home.  We have gone over what bills are and how it will be important for her to have a good education because money doesn't grow on trees.  Most families don't talk as openly about finances but I want her to understand without having to learn the hard way.  I think it also comes down to interest.  If she is open to a conversation and is curious it has paved the way to more interesting discussions.

I have also talked to hear about a Roth IRA once she is old enough and the benefits to the long term growth if she starts really early.

I have had her do some investing/finance simulators for kids, that she enjoyed.  She thought that they were a little basic but a good experience.  

Yes, I agree with Lynn M.

It would be chaos and eternal debate as to what the curriculum would be. Then you would need to consider how different states, counties, cities would be teaching different curriculum because of drastically different socio-economical lifestyles.

I live 30 minutes out side of Baltimore and I guarantee the schools in our district wouldn't agree to teach the curriculum that the schools in Baltimore City teach (and vice versa). I think it's a really great idea and agree completely that kids need to be exposed and active in financial principles and learnings early on. I especially want my kids to understand money and that money doesn't control them---they control money. But I don't think that is something that can be taught in school.

I think parents need to take the time to implement these teachings and practices in young children and adolescents with constantly so that when kids start making money they aren't mesmerized with idea of having cash but rather understand how to control and handle cash which in turn gives them more freedom to think of how to use that money to make more cash. This was a really cool thought and post and I don't know if I want to type more to expand upon my thought on the issue but looking forward to reading other opinions on the matter.

@Scott Trench one of the organization I'm involved with is Junior Achievement and it actually does teach grade school kids finance but its program is only in underserved communities.