Considering that personal finance becomes a major part of adult life after high school or college, many graduating students and parents are surprised to find out that high schools are lacking in personal finance education. This has led many people to argue for why personal finance is important for students to learn in high school. Many of the arguments revolve around the importance of preventing financial confusion and struggles in students who have to handle personal finances for the first time. If you are a former student and ever find yourself on the brink of bankruptcy, consider talking with a Tennessee bankruptcy attorney for advice.
The Need for Tennessee Personal Finance Education
When it comes to Tennessee personal finance education, a 2011 study showed that 42% out of 1,132, adolescents said their parents did not talk enough about personal finances and 32% did not know enough about interest and fees that come with credit. In recent years, over half of the states do not mandate high schools to involve personal finance education. This means that at least half of high school students may not have the information they need to maintain healthy personal finances.
A lack of proper financial information has been shown in the past to cause newly graduated students to struggle significantly with maintaining high credit scores along with other financial struggles with things like bills, interest, and loans. Not knowing what to do in certain financial situations can lead these young adults to unwise and potentially damaging financial decisions. Knowing how interest works, for example, can save you a lot of money in the long run because you will know a bad deal when you see one.
Potential Negatives of Not Teaching Personal Finance in Tennessee
In terms of negatives of no personal finance education in Tennessee, there are several, but the main one is letting young adults go out into the world of scams and risky financial decisions. This can be demonstrated with data that has been collected on young adult financial patterns in recent years.
· Over 20% overspent their monthly income by $100
· Student loan debt has increased by 56% from 2004 to 2014
· 81% of college graduates have one long-standing debt
· 26% say they have failed to pay bills within the deadline
Teaching personal finance in schools could mean benefits that include students who know a bad financial decision when they see one, students who can make strong budget plans in Tennessee, students who can pay off debt faster, and students who are prepared to improve their personal finances. Not only will this help students feel more confident in their spending habits, but this will also help them make financial decisions that can benefit their future.
Bankruptcy Lawyer in Chattanooga, TN
If you have any personal finance questions or if you find yourself struggling to maintain healthy finances, then consider reaching out to our team of lawyers in Chattanooga, Tennessee and North Georgia for guidance on financial decisions and bankruptcy. All you have to do is call Tom Bible Law today at (423) 424-3116 to speak with a Bankruptcy lawyer in Tennessee for a free consultation. Our team of Tennessee bankruptcy lawyers is located in Chattanooga, Kingsport, and Tullahoma.