Friday, March 25, 2016

Evidence Financial Literacy Education Works?

Wisconsin Public Radio recently completed an excellent series on financial literacy - and the lack of it across the nation.  The series included coverage of a study by the University of Wisconsin that tracked credit scores in states before and after financial literacy requirements were introduced.

Comments from the author J. Michael Collin who directs the UW Center for Financial Security:
"We followed the credit scores, on average, of people before and after the state implemented the curriculum, and the average credit score went up about 20 points, mostly because they were more likely to pay their bills on time."
Interesting stuff.

Thursday, March 10, 2016

Mississippi Paper Editorializes in Support of Financial Literacy Requirement

The Dispatch recently wrote an editorial in support of a program at Mississippi State to educate college students about debt.  Included in the editorial is strong support for a statewide program that educates students even younger.
While this move by the university is undoubtedly a good one, financial literacy is something that should start earlier. Unfortunately parents aren't always in a position to pass on money management skills. We hope area high schools will take note and help equip students to make sound financial decisions before taking on student debt.

Sunday, March 6, 2016

Financial Literacy Month - Good or Bad?

There's a column in the Wall Street Journal this month questioning whether Financial Literacy Month (April) is worth the fuss.  It is a thought-provoking take that is worth a read.

Here's one reason the month makes sense:
Lusardi, a professor of economics and accountancy at George Washington University, hopes that Financial Literacy Month could help nudge high schools to adopt financial curricula. Only 17 states currently require high-school students to study personal finance, according to the Council for Economic Education.