Why is Personal Finance Education Important?

Credit card and personal finance education on the agenda in NJ

New legislation in New Jersey’s state government would require personal finance education including a variety of detailed explanations on credit and debt terminology and consequences for card applicants.

The bill sponsored by New Jersey state Senator Barbara Buono and passed unanimously by the Senate Commerce Committee would require lenders to register with colleges and universities annually to announce their presence on campus.

The bill would also inhibit lenders from offering a slew of freebies to young adults that sign up for a credit card.

Buono commented on the importance of personal finance education saying, “Promotional sales gimmicks and students’ own ignorance about the factors playing into their personal credit and credit card debt result in many young adults getting in way over their heads. By informing them of the facts and eliminating sales gimmicks, we can hopefully empower students to make better credit decisions.”

As the bill moves through the full senate, the Philadelphia Inquirer is reporting that campus officials generally support the measure.

Rowan University spokesman Joe Cardona hailed the bill as important legislation. At Rowan, credit card companies have been banned from on-campus solicitations for over 10 years, reports the Inquirer.

Uptick seen in personal finance education

Attendance at personal money management classes is up both in the classroom and online, but why is personal finance education important?

The Wall Street Journal is reporting significant increases to education and “financial literacy” classes that are hosted at local community spots, universities, and online from educational institutions like MIT.

Some people hoping to learn about the effects of the credit crunch, the status of the real estate market, and economic theory are apparently turning to OpenCourseWare financial tools which are much like a virtual class to learn the importance of finance.

Lecture notes, study guides and exams are available from this online offering of more than 180 business and financial education classes from nearly 250 universities globally.

High school students are also taking more personal finance education classes as the economy increasingly impacts how they will handle credit decisions in college and their plans for future careers.

Schools across the nation are reportedly realizing the importance of personal finance and making personal finance education courses and know-how a top priority.

Personal Finance Resources – What Can Help You Get Out of Your Financial Troubles

If you are in debt, you might be interested in seeking help. The good news is that you have a lot of personal finance resources right at your fingertips. If you owe lots of money to the credit card companies, these resources can help you get out of debt. If you don’t owe any creditors right now, these resources can help ensure it says that way.

Personal Finance Software: These are software programs that you install on your PC. You can get a file to download the program from online or you can make a purchase and get the CD to install. Now, these software programs are just one of the many personal finance resources out there, but they are a great starting point. While these programs do vary, you are likely to get many features. You should basically be able to keep a balance of your checking or savings account, create a budget, get automated reminders to pay your bills, and much more.

Personal Finance Courses: The best way to education yourself on the importance of managing your finances, as well as learn how to do it is to enroll yourself in a personal finance class or course. These programs are found all across the country and some are even offered online. Basically what happens is that you get educated on important financial aspects, such as keeping a budget, making a budget, you are shown the importance of paying your bills on time, shown what to do if you do fall behind, and so forth. This is one of the best personal finance resources out there because it educates and prepares you for the future.

Professional Experts: If it comes to you getting out of debt, you are encouraged to seek help from a professional debt relief expert or a financial planner. In this case, you not only want to organize your monthly budgets, but you also need to get out of debt too. This is a lot to handle all by yourself. As just stated, this professional help can come from a financial planner, a credit counselor, a debt settler, or a professional consolidation company.

In short, these are just a few of the many personal finance resources you should have available to you right now. Always remember that it is never too late to get out of debt and it is never to late to ensure you don’t succumb to it.

If you are in debt over your head, the best solution at this point is to obtain a financial settlement. However, you need a great deal of research before going with the first company willing to deal with your debts. Remember that it is imperative to get rid of your debt as soon as possible, since you never know what the economy will bring and when will it be too late to change anything.

Personal Finance Programme To Be Introduced in Schools

Young Britons could be set to develop a more responsible approach to loans in later life following the introduction of a multimillion pound financial literacy programme in schools, it has emerged.

Under the 11.5 pounds million objective, primary and secondary school pupils across the country are to receive access to resources aimed at helping them to manage their personal finances throughout their childhood and as they get older. Consequently, as a result of becoming more aware of financial terms and products such as personal loans in their youth, children could be able to manage their money and create budgets more effectively in later years.

Under the scheme, in which funding will be made available from 2008 to 2011, a variety of resources will be centered around Child Trust Funds (CTF). By using CTFs as a way of talking about managing money in maths lessons, teachers could be set to bring “finance to life”. In addition, staff are due to receive “high quality training and support” so as to help them pass on the best possible knowledge of personal finances to children.

Meanwhile, the secondary school curriculum is set to include a specific economic wellbeing and financial capability section, where pupils will be able to learn about budgeting, tax and savings, as well as monetary products such as personal loans and pensions.

Commenting on the announcement, Ed Balls, secretary for children, schools and families, said: “It’s never too early to encourage children to think about money and saving for the future and we want to ensure that every child, no matter what their background, has the financial skills to achieve whatever they want in life.”

He added that as CTFs provide a “financial head start” for children, the need to learn how to manage money is set to become “real and tangible in the classroom”. As a result, he claimed pupils will be able to apply what they have learnt when applying for a loan or setting up a savings scheme in later life. “It is vital children understand how maths is relevant to everyday issues like opening a bank account, shopping and saving,” Mr Balls claimed.

Treasury minister Kitty Ussher added: “Financial understanding is a key life skill. Children need to understand the value of money and how to interact with financial service providers to provide for their own futures. The skills they will learn in class, combined with the experience of having their own savings product, will better equip them to avoid financial problems in later life.”

Towards the end of last month, a Citizens Advice spokesperson reported that the introduction of mandatory personal finance education in secondary schools could vastly improve the general British attitude towards credit. The representative claimed a “lot of debt problems” are due to a shortfall in knowledge about financial terms and confidence when to comes to dealing with money. However, by bringing in classes, children may be able to learn how to budget their outgoings and search for a competitive rate of interest on an unsecured personal loan.