Many people grow up without learning how money works, which usually results in difficulties. Studies reveal that less than one-fourth of millennials have basic financial knowledge.
A vital starting point in the learning process is admitting that you don’t know. For example, most people do not know that credit scores show if a person has paid his or her bills on time and how much has been borrowed. Most people are not aware that credit reports often contain incorrect information, or how to check for errors.
Credit card rewards may seem like a good deal but only is you pay your bill on time every month. If you don’t, late fees and interest charges can more than outweigh any reward point benefits.
These are just two areas on which many young people, as well as others, lack a basic understanding. However, a wide variety of sources are available to add to your knowledge.
For additional information on learning how money works, click here.
Teaching Suggestions
- Have students conduct research to determine the financial knowledge among various age groups.
- Have students create a video presentation with suggestions for improving financial knowledge.
Discussion Questions
- Why are people often not informed on basic money topics?
- What are the most common topics that on which many people lack basic financial knowledge?
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