With the country in the midst of a deep recession, many Americans are turning their attention back to the matter of personal finance. With all of the factors that have been linked to the current economic crisis, one has received renewed criticism by financial experts for its role. At present, the average savings amounts for Americans is pathetically low while personal debt is high.
The consensus reached by government, community, and business leaders is there is a vital need to provide education about personal finances to both children and young adults. An accurate knowledge of budgeting, proper savings, and the real cost of credit is invaluable. A trend in reducing this educational deficiency has been underway for the last decade.
As part of this overall movement for increased financial education, the Jump$tart Coalition for Personal Financial Literacy, a Washington D.C. based organization, is just one party that is dedicated to improving the financial literary of children and young adults. The goal is to reach these groups before they get into debt in the first place.
According to Laura Levine, Jump$tart’s executive director, one of the serious areas in need of attention is college age credit card debt. She said that misuse abounds due to ignorance of credit card rates and limits. Many students will pay the minimum payments without trying to pay off the balance. Once the credit limit is increase, the spending can get out of control and the interest alone can keep the student from paying off the debt.
Jump$tart and organizations like it are providing resources to parents, teachers, and students about finances. The information and education of young people is vital if there is to be any hope of correcting the negative trends of credit card debt and bankruptcy among younger Americans. The consequences can be damaging to future employment prospects and limit dreams of home ownership.
The efforts to provide comprehensive financial education are coming from every level of government and leadership. Even form President George W. Bush made some effort to address the subject by creating his President’s Advisory Council on Financial Literacy, which made the ambitious demand that every student in American receive financial education. Like movements at the local levels, this goal has yet to be reached.
Tags: jump$tart, credit card repayments, jumpstart, personal finance, student debt
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