Unfortunately, most young Americans have a very poor grasp of basic financial literacy.
According to USA TODAY, “studies show that a majority of young people in the United States have poor financial literacy, a trend that has been consistent over the past decade and shows few signs of improving.”
This is a very serious issue considering young adults face an increasingly competitive job market and have high levels of personal debt. Many experts blame limited formal instruction in basic financial literacy as the reason for the emergence of such a crippling trend.
Less than half of all states require high school students to take an economics class and only 13 require students to take a personal finance class. Education on these important topics is scarce at a time when it might be needed more than ever. As Annamaria Lusardi, an economics and accountancy professor and director of the financial literacy center at George Washington University, told USA TODAY: “If we live in a world where people are in charge of their own financial well-being … we have to equip people to deal with this individual responsibility.”
The interview
Jake Dees, President of the Florida Wealth Management Association (FWMA) at the University of Florida, spoke to me about the importance of young people having a basic understanding of personal finance. The FWMA is an organization that focuses on fostering financial literacy in students.
Why did you decide to get involved with the Florida Wealth Management Association?”
“I actually got interested in the Florida Wealth Management Association when I went to an info session for the MSF program at UF. I went to the meeting for FWMA the following week and I thought that the club was very personalized and I saw an opportunity for me to get involved with a group of students that felt more at home rather than a larger organization.”
How can we ensure that college students receive guidance on how to manage their money effectively later in life?”
“Some of the clubs in the business school, for example FWMA, teach personal finance to an extent, but to my knowledge there isn’t a specific class at UF that teaches personal finance. Or at least there isn’t a class that is marketed well enough that many of the business students know about. The generic classes that every student has to take, like finance, help understand the basics of personal finance. But there aren’t really many opportunities, unless you get involved with clubs, to learn about how to manage your own personal finances, including your debts and preparing for retirement. Most of the knowledge that I’ve gained about preparing for my retirement has come from the Florida Wealth Management Association, as well as other clubs or organizations in the business school like the Florida Leadership Academy.”
What resources does Florida Wealth Management Association provide students with in order to help tackle this issue?”
“The resources that UF has that primarily focus on personal finances are mostly the clubs that UF has to offer. Some of the most basic resources, like mint.com, are rarely talked about in college. But it is a great application for students to use and learn how to manage their finances.”
Going forward
Students at the University of Florida can get involved in a variety of clubs on campus, such as FWMA and the Florida Leadership Academy, that will provide them with the resources necessary to break free of the trend of financial illiteracy in young adults. These clubs often make appearances at tabling events on campus and post future meeting times on their websites. Joining these clubs or even just attending a few meetings can be a great way to learn some important information about financial management.
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