There’s a growing movement to educate students before they head to college on matters of personal finance.
Some students have an ACT score that will secure admission to almost any college they choose, yet they may not know how to make change or even write a check.
Not knowing the basics of personal finance can cause people to make mistakes that will cost them for decades
Certified Financial Planner John Hixson says, ideally, young people should learn basics at home, such as living within one’s means.
“Spend what you have. Don’t spend more than you have. That’s the first thing,” he said.
Hixson says learn and understand pitfalls to avoid, such as high interest credit cards and excessive student loans.
For example, he says research what you can expect to earn after graduation and balance that with any debt you plan to incur.
“Think it through. For example, if you’re going to be an accountant, look at what a starting accountant or CPA makes. And let that influence whether you’re going to borrow money for college or not,” he said.
He also advises everyone to regularly save for emergencies and future needs. For example, if you get a pay raise, instead of using it to raise your standard of living, set that money aside.
Hixson says accumulating savings means having more choices, while poor financial decisions limit one’s options in the real world.
Hixson offers articles on financial planning issues.
Calcasieu School Board member Ron Hayes agrees, that learning financial basics is needed to start life off on the right foot.
“I’ve heard of kids getting out of college and not knowing how to write a check, much less, balance a check book. We’re talking 2019. Shouldn’t we give them the skills to be able to handle that? I think we should,” said Hayes.
He says Calcasieu schools offer opportunities for such learning and will include more on issues like borrowing for college.
“We have what we call financial parks, off the property, they’re not on the campus but we’re hoping to get them on the campus in the future, kids are exposed to familiarity with financial decisions they’re going to have to make in the future,” said Hayes.
Hayes says they plan to add some personal financial education in required classes such as algebra one.
