“According to Money, the average millennial household “owes $14,800 in student loans.” Writer Kerri Anne Renzulli explains that while debt averages vary across each generation, people of all ages are demonstrating a greater comfort with debt. As everyone becomes more comfortable with financing and credit, there is a greater risk that accumulated debt will never be paid off in full.
‘Younger people are taking on debt at a higher rate and paying it off at a lower rate,’ says Lucia Dunn, an economics professor at Ohio State University who has studied consumer debt. ‘When they reach age 75, the debt picture for them will look a lot different than what we currently see. When you project out these trends, it is not so optimistic.’
The country should take a proactive approach in preventing debt from spiraling further. Requiring personal finance in high schools with the goal of establishing financial literacy in young people before they become independent is a logical first step.” (Read entire article here https://www.nola.com/interact/2018/11/should_high_schools_be_require.html)
Last week, I had the privilege of volunteering as part of Leadership Montgomery at Finance Park at Thomas Edison High School in Montgomery County. Growing up, I was involved with Junior Achievement in high school and jumped at the opportunity to be included in this experience with some 7th graders from Briggs Chaney Middle School. As part of this program, I spoke to the students about managing debt, establishing credit, the benefit of low interest rates on your monthly payments, and the idea of “wants vs. needs.” In today’s world, many adults still struggle with these concepts and even many Wharton students lack a basic financial education.(https://www.cnbc.com/2019/04/26/even-mba-students-could-use-some-basic-money-lessons.html). It is extremely important that we start basic financial education at an early age so that our children have the financial wisdom necessary to become successful adults.