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How many 18 years olds are making rational decisions about return on investment in 10-15 years time? I'm not sure how you go about adequately informing student

How many 18 years olds are making rational decisions about return on investment in 10-15 years time? I'm not sure how you go about adequately informing students about a major life decision they are making.

superJoy 13y ago
My high school counselors frequently came by classes and spoke about college---while they didn't talk about the financials in detail, they easily could have. It'd be as simple as doing a quick calculation on the board of how long it will take to pay off some amount of debt. Now whether that advice would stick in the students' heads, I don't know, but they should at least try. There's also high school economics classes that should be discussing this. I was required to take one and my teacher actually did a better job of explaining the cost of college than the counselors.
- vacri 13y ago
  Now whether that advice would stick in the students' heads Certainly not all, by a long shot. Here in Australia, you get a couple of grand to help you out when you have a baby, helping cover various initial costs, purchasing prams or whatever. A friend of mine mentioned that he'd heard his 17-year-old daughter talking with her friends about having a baby because then you get that baby money. They saw it as a huge windfall and don't understand that all that money and more is needed to set yourself up for a child, nor that a child significantly changes your lifestyle and activity choices, especially for someone around 20. It's not to say that everyone at that age has no forethought, but as a demographic, they're not good at long-term planning.
  - thesimpsons1022 13y ago
    but what about their parents? shouldnt the parents be smarter than that?
existencebox 13y ago
At this point; I'd accept "more than not at all." Anecdotes ahead, proceed with caution: Very average PA public school; had a "home ec" course, in which we did hilariously outdated calculations on things like interest vs compound interest. Not a single mention of what I'd call "practical economics"; e.g. actually balancing a real budget (which, FWIW, I've heard is becoming more a thing in certain districts), calculating the costs of goals, and perhaps touching on long term financial planning. When I first had to handle retirement fund options; you could have handed me a live squid for all I knew what to do with it. I got _lucky_. I had parents who filled in many of the gaps, and were willing to be a resource as I got older, as well as some more informed friends; but I worry about how people with less might have gotten by.
- thesimpsons1022 13y ago
  why is it the schools job to teach their finances? I see school as more academic, while personal matters like that should be taught at home.
  - lawnchair_larry 13y ago
    Are you kidding? What home? Oh, you mean the people who the banks gave giant loans to that it turned out nobody could afford and put everyone into foreclosure? Or their kids, who signed their life away to bankruptcy-proof loans on a degree they never finished, and can't get a job good enough to pay it back? Have you seen what passes for a parent? Yes, let's have those people teach their kids personal financial management.
    - deleted 13y ago
      [deleted]
    - thesimpsons1022 13y ago
      > Oh, you mean the people who the banks gave giant loans to that it turned out nobody could afford and put everyone into foreclosure? Or their kids, who signed their life away to bankruptcy-proof loans on a degree they never finished, and can't get a job good enough to pay it back? that applies to the teachers just as much as it does to parents. teachers loved getting those loans. I can even do exactly what you did and say: Oh you mean the people who raped their students? Or the ones who want to teach creationism and have schoolwide prayer? Have you seen what passes for a teacher? Yes, let's have those people teach our kids. On an unrelated note, I believe your comment does a good job refuting the notion that was made in the parent comment that " How many 18 years olds are making rational decisions about return on investment in 10-15 years time? ".

superJoy 13y ago

My high school counselors frequently came by classes and spoke about college---while they didn't talk about the financials in detail, they easily could have. It'd be as simple as doing a quick calculation on the board of how long it will take to pay off some amount of debt. Now whether that advice would stick in the students' heads, I don't know, but they should at least try. There's also high school economics classes that should be discussing this. I was required to take one and my teacher actually did a better job of explaining the cost of college than the counselors.

vacri 13y ago
Now whether that advice would stick in the students' heads Certainly not all, by a long shot. Here in Australia, you get a couple of grand to help you out when you have a baby, helping cover various initial costs, purchasing prams or whatever. A friend of mine mentioned that he'd heard his 17-year-old daughter talking with her friends about having a baby because then you get that baby money. They saw it as a huge windfall and don't understand that all that money and more is needed to set yourself up for a child, nor that a child significantly changes your lifestyle and activity choices, especially for someone around 20. It's not to say that everyone at that age has no forethought, but as a demographic, they're not good at long-term planning.
- thesimpsons1022 13y ago
  but what about their parents? shouldnt the parents be smarter than that?

existencebox 13y ago

At this point; I'd accept "more than not at all." Anecdotes ahead, proceed with caution: Very average PA public school; had a "home ec" course, in which we did hilariously outdated calculations on things like interest vs compound interest. Not a single mention of what I'd call "practical economics"; e.g. actually balancing a real budget (which, FWIW, I've heard is becoming more a thing in certain districts), calculating the costs of goals, and perhaps touching on long term financial planning. When I first had to handle retirement fund options; you could have handed me a live squid for all I knew what to do with it. I got _lucky_. I had parents who filled in many of the gaps, and were willing to be a resource as I got older, as well as some more informed friends; but I worry about how people with less might have gotten by.

thesimpsons1022 13y ago
why is it the schools job to teach their finances? I see school as more academic, while personal matters like that should be taught at home.
- lawnchair_larry 13y ago
  Are you kidding? What home? Oh, you mean the people who the banks gave giant loans to that it turned out nobody could afford and put everyone into foreclosure? Or their kids, who signed their life away to bankruptcy-proof loans on a degree they never finished, and can't get a job good enough to pay it back? Have you seen what passes for a parent? Yes, let's have those people teach their kids personal financial management.
  - deleted 13y ago
    [deleted]
  - thesimpsons1022 13y ago
    > Oh, you mean the people who the banks gave giant loans to that it turned out nobody could afford and put everyone into foreclosure? Or their kids, who signed their life away to bankruptcy-proof loans on a degree they never finished, and can't get a job good enough to pay it back? that applies to the teachers just as much as it does to parents. teachers loved getting those loans. I can even do exactly what you did and say: Oh you mean the people who raped their students? Or the ones who want to teach creationism and have schoolwide prayer? Have you seen what passes for a teacher? Yes, let's have those people teach our kids. On an unrelated note, I believe your comment does a good job refuting the notion that was made in the parent comment that " How many 18 years olds are making rational decisions about return on investment in 10-15 years time? ".