Reversing Debt Culture Through Early Education by Christopher

Reversing Debt Culture Through Early Education by Christopher - August 2015 Scholarship Essay

If I were to add any class to the American high school curriculum, it would be a class on financial literacy. I believe that learning the basics of loans, mortgages, taxes, and investment options while in high school could greatly benefit young people. It would offer them real-life, applicable skills on top of their basic, core academics. When I was high school senior going into college, I knew little to nothing about finances and managing money. Throughout my undergraduate career, I took out multiple student loans without knowing all of the implications of taking on debt and how to manage it once I graduate.

As I am now starting a graduate program, the reality of how my debt (past and future) will affect my life is hitting me at full force. Recently, with my class schedule and tuition bill in hand, I went to speak with the financial aid office at my school to discuss payment options. I walked in, hopeful for an answer, hopeful to be pointed in the direction of some great scholarship program, work-study, or something to help lighten the burden of the dollar signs on my tuition bill. Unfortunately, the financial aid office had nothing to offer other than more loans at an astronomical interest rate. I left the financial aid office that day feeling defeated, shackled even, to my newly signed loans. I was even more confused by the forces that work against students as they attempt to obtain an education.

Students have, as I did, access to resources at their colleges or universities that give them options for managing their finances. But why wait until one has already signed on the dotted line? I believe the education needs to start earlier. After all, universities are a business and need to make money, and their customers are students. Furthermore, the cost of college tuition has skyrocketed at a much higher rate than inflation, leaving students drowning in an ever-rising sea – simply for trying to obtain an education. According to a report compiled by The College Board, the cost of tuition at institutions of higher education increased nearly 80% between 2003 and 2013, while the Consumer Price Index increased only 26.7% (Kurtzleben 1). In other words, the cost of obtaining a college degree is increasing at three times the rate of the cost of living – and students simply cannot keep up. High school students, particularly seniors, should be able to receive objective education handling these important societal changes and life situations.

A financial literacy class offered in high school could not only teach young people about managing student debt, but also offer basic education on mortgages, investing (such as in a 401k or IRAs) and how to file one’s taxes. While these may not seem like exciting topics to anyone, let alone a high school student, they are pivotal when a person becomes a working member of society. Unfortunately, not everyone has parents who are willing or able to teach these life skills to their children, which would make adding it to the public school curriculum a prudent decision. The class could be structured in a way that was fun and engaging for students, offering creative scenarios and “future-building” exercises. There could also be a way to incorporate technology into the course to make it more relatable and easier to navigate. With better education about finances and how to manage them, we could potentially make great strides in reversing the “debt culture” of our society, and open pathways on the increasingly difficult terrain that our young people must navigate in order to achieve success.

Reference:
Kurtzleben, Danielle. "CHARTS: Just How Fast Has College Tuition Grown?"U.S. News & World Report 23 Oct. 2013: 1-4. Web. 11 Aug. 2015.