Money management with personal finances is already fairly tough. This is why the Department of Treasury hopes to turn financial literacy into a “food pyramid” for anyone who needs a little help. The Department of Treasury is doing this despite the belief that the food pyramid isn’t helping with the one-third of adult Americans that are obese. ”Financial education core competencies” are what the Department of Treasury hopes to get public opinion on so a economic schooling program throughout the country can start.
Personal finance troubles strike the nation
If there’s a lesson to be learned from the Great Recession, it’s that when it comes to personal finance, too numerous Americans are financially illiterate. The meltdowns that occurred within the finance, housing and credit show us that there just isn’t enough knowledge out there on budgeting, investing, credit, lending and saving. Strategy for promoting basic financial literacy and education as mandated by the Fair and accurate Credit Transactions Act of 2003 is being reviewed. It is reviewed, reports Investment Advisor, by the Treasury Department’s Financial Literacy and Education Commission. The Commission hopes the use the “food pyramid” as an example in this. It plans for making it really simple to understand financi! al literacy basics.
Financial education basics
You can remark on this to the Department of Treasury if you would like. You just have to do it before September 12. ”Every American should have command of” five proposed personal finance concepts of “financial education core competencies.” The Federal Register notice released these on August 26. These are:
Earning: Understanding the difference between gross pay and net pay, employee benefits and taxes and the importance of training.
Spending: The main difference between needs and would like, learning how to create a spending budget, tracking spending and living within one’s means.
Saving: Understanding how saved money grows, how to meet long-term goals and wealth building, learning regarding financial institution accounts, understanding economic assets, such as savings accounts and investments.
Borrowing: Understanding the cost of borrowing and the role of credit scores.
Protecting: Learning how to protect assets, choosing the right insurance coverage and knowing how to guard against identity theft.
Agreement on financial education wanted
Expectations within the economic training field is what the real troubles are. This comes from the Treasury Department as reported by the Federal Register. Financial literacy and education content is what it wants agreement upon. Ted Beck explained that in schools “there’s a wide variance in different kinds of programs, the quality of programs.” He told this to the Dallas Morning News and is of the National Endowment for Financial Education. “The idea of having a really straightforward checklist regarding the basics is something we think is very important.” As outlined by a Texas training official, the Treasury is making a “good start” with the core competencies list. He also feels like it isn’t enough. For example, students should be taught the pros and cons of credit cards, mortgages, payday cash advances and other forms of borrowing.
Further reading
Investment Advisor
dallasnews.com/sharedcontent/dws/bus/columnists/pyip/stories/DN-moneytalk_06bus.ART.State.Edition1.26bf3ed.html
Dallas Morning News
dallasnews.com/sharedcontent/dws/bus/columnists/pyip/stories/DN-moneytalk_06bus.ART.State.Edition1.26bf3ed.html
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