Financial education should be a required college subject
Bryant’s blog reminded me of something that I have been saying for years.
http://activerain.com/blogsview/27122/Your-home-is-your
Bryant talked about how people are using their homes as a cash machine. How they do not realize that consolidating debt can be dangerous when you eat up all of the equity in your home.
For years, I have been saying that colleges should have a required course on ‘real world finance’. No, not that finance course that teaches you about markets and corporations….. but about the following:
1. How long does it take to pay off a credit card when you make the minimum payments? And how much did that $500 Ipod REALLY cost after you factor years of interest payments on it?!?!
2. Buying a home. Dangers of no money down and how it affects you should you need to sell right away.
3. Financing an auto
3. How credit works. Maximizing your credit scores thru behavior.
4. Managing debt, emergency cash needs, to finance or not to finance.
ect….
I have counseled many couples who have been overwhelmed with debt in the past. People who run up their credit cards and struggle to make the minimums.
Thinking back on my college education…. I can think of many courses that could be dropped in favor of this course. I mean, aren’t we trying to get our kids ready for the real world in college?!?!?!
More info can be found in my free e-book titled “About Credit” at http://www.dallasloanguy.com/resources.shtml