A survey conducted several years ago by the Federal Reserve found that, when it came to knowledge of managing personal finances, American high school students were sorely lacking. In testing over 4,000 high schools, the average student answered just half of the 31 questions correctly. Many of those high school students have now graduated and are attending college. Although there is a marked difference in self-reliance between high school and college students, how many college students are truly prepared to manage their own finances upon graduation?
While Penn does offer a few opportunities for students seeking greater knowledge in this area, we think a preceptorial on the topic would be an excellent resource. Some may scoff at the idea, but a course like this one ideally wouldn't simply be Balancing Your Checkbook 101. Students could be taught the rudiments of mutual funds and Individual Retirement Accounts, as well as guidelines regarding credit card management and, most importantly, taxes.
The intricacies of credit cards, especially interest and debt, are not as fundamentally obvious as they appear. A preceptorial covering this would be especially handy now that many credit card companies explicitly target students, with intentions that can be less than positive.
It is also true that Ivy League schools can graduate many students with the ability to beautifully craft five paragraph essays or solve complex equations, but without basic knowledge of managing and growing whatever wealth they may accumulate upon graduation. A preceptorial covering these topics would be an excellent optional resource for students looking to learn more on the subject.
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