David Lerner Associates: Millennials and Financial Education

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(Newswire.net — July 7, 2016) Syosset, NEW YORK — It may no longer come as a surprise to anyone that Millennials do not have an excellent grasp on the management on money. Studies suggest that even with greater financial burdens from economic uncertainty and student loans, they are still lagging behind in basic financial education.  

“There are examples of some schools and universities folding financial literacy into their curriculum,” said Martin Walcoe, Senior VP at David Lerner Associates in Syosset NY. “But it clearly isn’t enough.”

A recent survey found that 87% of all Americans believe that financial literacy should be taught in school. And that sentiment is echoed in the feelings of Millennials themselves. The same survey showed that 60% of young people feel that a financial literacy test should be a requirement for high school graduation. 

The problem may be this — in the minds of the students, there is no clear and applicable use for an education in fiduciary skills. Why should they learn about balancing a checkbook when they don’t even have a checking account yet? It’s the equivalent of those who have no interest in becoming a quantity surveyor; why would they have any need for learning about advanced calculus and parabolas? 

So while budgeting, debt, savings, and other personal financial basics may be essential tools to a grown adult in the workaday world, these subjects are unlikely to motivate the interest of a high school student who still relies on his/her parents to make these kind of household decisions for them. 

Perhaps a “financial driving test” should be implemented before any student loans are approved. This might sound like a crazy idea, but think of the consequences. If a student is not able to pass a basic personal financial test, then they won’t be approved for a student loan. How many millions of dollars would be saved? How many educated or semi-educated students would be the result? It may not be that crazy an idea after all. 

And it would force parents, students, and teachers alike to engage in the subject in a far more meaningful way with real life application staring them in the face.

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About David Lerner Associates

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates http://www.davidlerner.com (800) 367-3000

David Lerner Associates

477 Jericho Turnpike
Syosset, NEW YORK 11791-9006
United States
(800) 367 3000
ellen.ford@davidlerner.com
http://news.davidlerner.com