Schools face so much pressure due to test scores that unless these topics come up on a standardized test, don’t expect them to start teaching it.

If I could show high school kids one thing, I would stress how interest works, both as a borrower, and a lender.

I asked a group of middle schoolers once what they consider to be a good living income. The average response was about $15k. Now I would assume high school kids would raise that a bit, my experience shows that kids really have no idea what a ‘good’ income is, nor that they should limit their student loans if they plan on a lower-paying income (teaching, for example). Don’t go to a $30k a year school if you plan on making only $25k a year working.

Also, how much does it cost to establish your first place? Add up the spoons and pots and towels and utility deposits and sheets and kitchen tables… Sure, some of that is usually hand-me-downs or freecycle finds, but it still adds up!

0) The value of money vs the value of things vs the value of time.

1) That the world they grow up in prefers to exchange time for stuff — That they spend 8 hour work days in exchange for money and that it prefers that they spend the money on trinkets and baubles.

2) That happiness is not necessarily a function of trinkets and baubles.

3) That they do not need to work all their life for money. That there are alternatives other than “dropping out”.

4) That getting a mortgage means paying for their house twice over in interest and that they will be working for the next 30 years.

5) That solely using a tax-advantaged retirement plan means they will be working for the next 30 years.

– Essentially I think they should be taught what they are getting into if they continue down that path.

In my area, 5th graders begin learning about finances. They are taught to balance and maintain a check book. As the year goes on, the teacher gives them ‘money’ based on a variety of tasks (teacher assistance, good papers, etc.). Then, at the end of each month, they hold an auction and they can purchase items (pop, suckers, pencils, etc.) based on their available funds.

Not only do I believe that high school students should be exposed to everything on your list, I believe they should start with the basics (budgeting, interest, savings) early on – in elementary school. Then, by the time they reach high school, they’d be more likely to understand the real life scenerios like mortgages, 401K’s, etc. (It’s also our responsibility, as parents, to teach them and show them how important finances are in their lives – the good and bad.)

I would say it’s OK to teach this stuff but emphasize the simple stuff like budgets and credit cards. You don’t want the kid to tune you out.

If I could add anything it would be to trust few businesses intentions. They are all out to make a profit and will do just about anything to get it. Maybe if the kid know this they can step back and look at something for what it really is, not how it was sold to you.

Indeed a very good list of topics.

I was wondering if you did any searching to see if there were any studies done to compare how students who were knowledgeable about these subjects did in life later on, than the students who may not know much about finances.

Cheers
Cleric