Should basic Micro and Macro Economics be required in highschool?

[bicentennial_baby]

I believe so. You?

[whirlygigspin]

1. I'd be happy with a basic 'financial literacy' course

http://en.wikipedia.org/wiki/Financial_literacy

"Financial literacy is the ability of individuals to make appropriate decisions in managing their personal finances. Raising levels of financial literacy is now a focus of government programmes in countries including<1> Australia, Japan, the United States and the UK. The OECD started an inter-governmental project in 2003 with the objective of providing ways to improve financial education and literacy standards through the development of common financial literacy principles. In the UK, the alternative term “financial capability” is normally used: the Financial Services Authority (FSA) in the UK started a national strategy on financial capability in 2003. The US Government also established its Financial Literacy and Education Commission in 2003.

An international OECD study was published in late 2005 analysing financial literacy surveys in OECD countries. A selection of findings<2> included:

In Australia, 67 per cent of respondents indicated that they understood the concept of compound interest, yet when they were asked to solve a problem using the concept only 28 per cent had a good level of understanding.

A British survey found that consumers do not actively seek out financial information. The information they do receive is acquired by chance, for example, by picking up a pamphlet at a bank or having a chance talk with a bank employee.

A Canadian survey found that respondents considered choosing the right investments to be more stressful than going to the dentist.

A survey of Korean high-school students showed that they had failing scores - that is, they answered fewer than 60 per cent of the questions correctly - on tests designed to measure their to choose and manage a credit card, their knowledge about saving and investing for retirement, and their awareness of risk and the importance of insuring against it.

A survey in the US found that four out of ten American workers are not saving for retirement.

“Yet it is encouraging that the few financial education programmes which have been evaluated have been found to be reasonably effective. Research in the US shows that workers increase their participation in 401(k) plans (a type of retirement plan, with special tax advantages, which allows employees to save and invest for their own retirement) when employers offer financial education programmes, whether in the form of brochures or seminars.”<3>

[Rex]

2. At least basic economics, what they offer now is sad.

Why not, they offer it in college.

[bicentennial_baby]

5. That's what I'm saying, basic micro and macro...

It's not that tough...And our country would be much better off, imho.

[XemaSab]

3. I don't think HS students have enough experience for it to make sense

(which is the fault of poor schooling).

I had a required econ class in college and loved it. :)

[bicentennial_baby]

6. At least Macro, which doesn't require much math,

unlike micro. At least with Macro they would understand how SS works, and unemployment, etc.

And yes, your thread inspired me :loveya:

[XemaSab]

8. Thanks.

:)

[Warpy]

4. Basic financial literacy needs to be taught

What different types of bank accounts are. What a CD is. What different times of maturity of a CD mean and what it means if you cash out early. How to fill out checks and balance a checkbook. How to calculate interest. How much every percent of interest on a 30 year mortgage is going to cost you per dollar of purchase price when you decide to buy a house. How loans are amortized, with the bulk of the interest paid first and the bulk of the principal paid last. What sort of paperwork is needed to apply for a car loan, a mortgage, or a personal loan. Why the convenience of credit cards should be avoided unless they're issued by a business for business purposes. What net worth means and how to figure it out. What happens to savings in low interest accounts during periods of inflation and where else to put it. What happens to people who go for instant gratification and end up bankrupt and how long it takes for them to recover.

If they had taught all this stuff in high schools, perhaps this country wouldn't be in such seriously bad shape today. People wouldn't have been such suckers for every scam that deregulation opened up.

Formal economics courses can wait until college. High school kids need the bare basics.

[bicentennial_baby]

7. I think Econ is essential too, but

I'm an Econ major :P

[lumberjack_jeff]

9. Absolutely. There's a big gap among young people about the fundamentals.

Like opportunity cost and debt.

[bicentennial_baby]

10. Yes, the basics...

I seriously think we'd all better off if hs kids started off with a basic economic/financial foundation before they graduate.

[Swamp Rat]

11. Yes!

Perhaps Latin and Greek too.

[bicentennial_baby]

12. I took both in HS, and I agree...

Helped me immensely in college. :hi: