The catch phrase is financial literacy… the understanding of money and it’s meaning in our society. And according to Michael Gutter, UW Extension Financial Specialist, “Wisconsin, like almost every other state, is failing the grade.”
With young people having more access to money and credit, it’s become painfully evident that many of them don’t have the skills to manage it wisely. “Bankruptcy rates for people under 25 are at an all time high and growing at an all time fast rate. This is of a lot of concern, because people who have to file for bankruptcy so early limit their choices for the next few years,” says Gutter, who points out that the ripple effect could impact the economy as a whole; those young people won’t be buying like normal consumers, because of their bankrupt history.
The Wisconsin Department of Public Instruction this year came out with a set of guidelines for what money classes schools should teach and how they should be taught. “They deal with everything form understanding how money varies with your career choices to simple things as budgeting, retirement, savings and investing,” says Gutter.