Read definitions and research on financial literacy in CT and beyond.
General Definition of Financial Literacy:
The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. - 2008 Annual Report, President’s Advisory Council on Financial Literacy
Financial Literacy Education in CT: Bill No. 319
Financial literacy can be described as the ability to make informed judgments and to take effective actions regarding the current and future use and management of money. It includes the ability to understand
financial choices, plan for the future, spend wisely, and manage the challenges associated with life events such as a job loss, saving for retirement, or paying for a child’s education. United States Government Accountability Office
"Mandatory financial education is a public health issue and should be treated with that same urgency." Bob Sullivan in Stop Getting Ripped Off.
"So over the 20 years or so that our children live with us, we should try to have just enough conversations about money and values behind our financial decisions. Only then will they have a complete picture of where we stand, what we stand for, and how we make financial decisions. Given how much we invest in them, talking about what we spend and how we save and give away, and why, is one of the important legacies we can leave them. Ron Lieber in The Opposite of Spoiled.
College prices are still climbing, but they’re doing so at a slower pace than they were for the past several years, and the amount of money borrowed for higher education last year fell for the third straight year, according to two reports released today (11-13-14) by College Board. Read More.
A college degree is worth $1 million...Read more
Don't stop believing in the value of a college degree. See report.
Do the Benefits of College Still Outweigh the Costs? Yes, a degree earned a 15% return over the past decade. Read more.
"College is a commitment and goal worth planning and saving for, and ultimately, worth going into moderate debt for. Student debt is not inherently a bad thing, as long as it is reasonable, low-risk, calculated, and flexible to the needs of working young adults. It's imperative that we continue financial counseling services for students incurring loans to help them manage and understand their obligations." Richard Wylie in Undergraduate Education and Debt.
“Today’s undergraduates believe the economy is the most important issue facing the country. More are working and more are working longer hours. They are taking fewer credits and require more time to graduate. Two-thirds are leaving college with large student loan debts. One in four who previously lived on his or her own is moving back with parents and one in eleven is unemployed. However, there is a mismatch between student aspirations and the economic realities they face. An overwhelming majority of undergraduates, a slightly higher percentage than in the 1990s, expect to be at least as well off financially as their parents.
This finding suggests that college and universities need to enrich the programs and services to better prepare students for today’s economy and that government should invest a greater share of its resources in financial aid grants as well as providing a safety net for students with large financial burdens and limited job prospects.”
“Undergraduates need an education that will prepare them in the short run for an economy in recession and in the longer term for a developing information economy in which they will have an average of six different careers, some of which may not exist. The education for both is the same. It includes an enriched major, practical minors, internships, and puts career counseling on steroids”. Generation on a Tightrope, by Arthur Levine and Diane R. Dean, Copyright 2012
“…we feel very strongly that we need to prepare current students to become future consumers, understand long-term financial consequences of today’s decisions, and manage the debt that may come with obtaining a degree.” View blog