In many parts of the United States, students have record levels of student loan debt. The student loan crisis is caused by two primary factors. The cost of college has increased significantly in recent years. In addition, wages for graduating college students have decreased. Many college graduates struggle to find work in an industry relevant to their degree.
Some graduates must move back home with their parents. Few college students understand what they sign up for with their student loans. Oklahoma now requires a financial literacy course to graduate from high school. Other states have introduced similar legislation to help students.
Benefits of Financial Literacy
There are numerous benefits when students learn basic financial principles. Young people who start off on the right fiscal path have a much higher chance of success in the future. Avoiding debt and investing for the future can make a huge difference in a person’s financial position. The overall cost to offer a financial literacy class is low. With the success of Oklahoma’s program, more states will adopt this approach in the coming years.
Another way that states are combating the student loan problem is providing additional information related to student loans. Some students borrow money during college to live an opulent lifestyle. Student loans were designed to help students with the cost of tuition. By providing relevant information, government officials hope that students will take borrowing money more seriously.
Students who learn how to budget correctly have a much higher chance of succeeding in life. Not only do the financial literacy courses teach about the dangers of debt, but instructors teach students how to live on a budget. Young people can avoid taking on additional debt by spending less than they make. Many parents have positive things to say about these financial literacy courses.