Part of the reason behind the downfall of the U.S. economy is the irresponsible spending and poor decisions made by its citizens. The mortgage crisis was fueled by irresponsible home buyers purchasing homes outside of their budget. When time to renew their ARM (Adjustable-Rate Mortgage), they are suddenly hit with reality: interest rates are now higher than what they originally paid. Soon foreclosures start popping up, and due to the state of the economy, it is difficult for people to sell their properties. These properties are then seized by banks, who also are pressed for liquid assets. The falls of major lenders like Bear Stearns are a result of the lack of liquid assets. Bear Stearns' assets were tied up in real estate properties that were not selling. The government should educate the public to help prevent many of the economic problems today. Students should know the basics to personal finances before they graduate high school.

Unfortunately, many high school students don't know the basics of personal finance. Although one can always argue that smart students that go to college will learn how to manage their money, this information may be presented to them years down the road. Almost everyone makes financial decisions in their day-to-day lives, and those decisions become more important as students graduate high school. At the age of 18, many students go to college away from home, where they must make financial decisions on their own. Financing college may be a challenge for many students. These people need proper training to make financially sound decisions. I believe high schools should be responsible to prepare students for the real world that will hit them as soon as they graduate. The government provides free public education to people so they make sound decisions and help the community grow in a positive light.

Linworth's personal finance class has recently received a large amount of attention from Ohioans. Much of this attention is as a result of the state's attempt to improve the financial savvy of Ohio high school students. A few weeks ago, the treasurer of the state of Ohio came in to Rick's personal finance class at Linworth to speak to high school students about the subject. ONN also ran a story on the news, interviewing Linworth students and staff about the personal finance class. Linworth's personal finance class is one of few in the state, and something that Ohio educators are hoping to use as a model to set a statewide standard of financial savvy.

The Linworth philosophy of education is that students learn best when they combine theoretical concepts with real world experience. The experience and application part of the process teaches the kids the importance of learning in the classroom, and its relevance in their own lives. It is easier for people to learn when they can relate the material presented in class to concrete examples and situations rather than dealing with abstract ideas. The personal finance class is a great example of information taught to students that is relevant, practical and useful in making day to day decisions. Money is all around us, and no matter how wealthy people are, everyone should know how to manage, save and spend it responsibly.

I support the State's notion to ensure every student knows basic personal finance concepts. I do believe there will be some students that are already financially savvy, so if this class becomes a graduation requirement, students should be able to test out of it. The goal is to make sure students leave high school knowing this information, not to waste a period of the school day learning things you already know. With this extra bit of practical information, we will be taking another step towards fixing the country's problems.

Posted in Posted by Umang Patel at 11:01 PM