FINANCIAL EDUCATION Financial literacy is an extremely important life skill in present time fast paced society. Financial education is the knowledge of making responsible decisions when it comes to financial matters. The President’s Advisory Council on Financial literacy defines financial education as “the process by which people improve their understanding of financial products, services and concepts, so they are empowered to make informed choices, avoid pitfalls, know where to go for help, and take other actions to improve their present and longtime financial well-being” It is the ability to understand financial matters. Financial literacy also known as financial education is often related to personal finance.
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Getting a higher education can be a great thing because it opens the door for a lot of opportunities in life, but it does not come at an easy cost. Attending college can be very expensive and many of those who do are forced to take on some type of loan to support themselves. While the costs of education have grown, incomes and government aid aren’t keeping up. Students are taking on more debt, and with banks tightening their belts, many of them are turning to riskier subprime lenders. Student loans can be very expensive, therefore, a college student has to know how to manage his/her finances. Some Financial literacy courses could help students deal better with student loans. It helps them choose good financial aid programs, understanding interest rates, budgeting for tuition and living expenses, choosing whether to work and how much money to save. Credit card debt is another reason why students need to learn how to manage their personal finance. Most students in college use credit cards. It has become an important part of college life. A lot of college students between 18 and 25 have at least one credit
Getting a higher education can be a great thing because it opens the door for a lot of opportunities in life, but it does not come at an easy cost. Attending college can be very expensive and many of those who do are forced to take on some type of loan to support themselves. While the costs of education have grown, incomes and government aid aren’t keeping up. Students are taking on more debt, and with banks tightening their belts, many of them are turning to riskier subprime lenders. Student loans can be very expensive, therefore, a college student has to know how to manage his/her finances. Some Financial literacy courses could help students deal better with student loans. It helps them choose good financial aid programs, understanding interest rates, budgeting for tuition and living expenses, choosing whether to work and how much money to save. Credit card debt is another reason why students need to learn how to manage their personal finance. Most students in college use credit cards. It has become an important part of college life. A lot of college students between 18 and 25 have at least one credit