ATLANTA (FOX 5 Atlanta) - The federal government has a class it wants all college students to take, and a lot of folks are on board with this. It's a class that can make you a better money manager.
College kids know all about it. As a friendly reminder, nationally, student debt sits at $1.5 trillion. That's debilitating to young people starting careers, getting apartments, buying cars, and trying to be an entrepreneur. But here's something the US Treasury Department thinks will help the next generation manage money better: required finance classes in colleges.
Take this stat from a new government report: Financial education in high school means as a grown up you'll have higher credit scores and be less likely to skip credit card payments. In college, the study found personal finance courses mean you're more likely to save and less likely to max credit cards.
Treasury Secretary Steven T. Mnuchin said there are some built-in student loan issues that make it hard for young people to navigate money and debt: the complexity of student loans, and the lack of understanding of repayment plans.
Hey, mom and dad, take this quiz to see if you know what your students should know before saddling themselves with years of high debt: TAKE THE QUIZ.
Education would help students understand the loans, how to repay them and how to budget in the years ahead. Until this happens, students in high school or college can get a jump on it by learning to budget now. Make it happen so that it's a reflexive response to handling your allowance or your money from a new job. Make budgeting a way of life. Learn more about budgeting by looking around here: BUDGETING IDEAS and a BUDGET TEMPLATE.
Remember this isn't a cure-all. Wages are still low for some folks. School loan opportunities are still too much for some. But, knowing how to understand this before you get into debt might mean you can avoid some of it before it buries you under.
And joining the work force with good credit means you have more choices in life, not fewer.