Today’s kids would profit from a financial education

BETWEEN MAKING SURE our children had organized activities and providing them with the latest gadgets, we as a society failed to teach them a critical life lesson.

We’re not talking about staying drug-free or getting a good education; even the most unmoved cannot deny hearing those messages.

We’re talking about another serious threat: That nasty, four-letter word known as D-E-B-T.

It’s the rare baby boomer locally who doesn’t know Generation Xers – those born from 1965 through 1982 – who aren’t in hock over their heads. They often come out of college in debt (a factor beyond their control in many cases) but they still buy big and live large.

Ditto for the next group to come along, affectionately know as Generation Y, those born 1983 to 1997. Over-priced convenience stores and glitzy malls are their haunts.

When a disproportionate number of them need a vehicle, it’s the SUV or sporty car loaded with luxuries like GPS systems, sunroofs and remote car-starters. Little attention, until very recently, was paid to features such as gas mileage and reliability.

• Forty-five percent of Generation Xers (they’re about 27 to 43 years old now) said they have too much debt to think about saving, according to a recent USA Today article.

• Nine of 10 consumers in their 30s are in debt, according to the Federal Reserve’s Survey of Consumer Finances.

• The percentage saying they are very confident about having enough money for retirement decreased from 31 percent in 2007 to 18 percent in 2008 among workers ages 25 to 34, and from 28 percent to 16 percent among workers ages 35 to 44, according to the Employee Benefit Research Institute.

• According to MSN.com, the median credit-card debt of low-and middle-income people aged 18 to 34 is $8,200, the average college debt for recent graduates is more than $20,000 and people between the ages of 25 and 34 make up 22.7 percent of all U.S. bankruptcies.

Clearly, there is a need to improve fiscal literacy and responsibility. As public school administrators and teachers embark on a well-deserved summer break from the day-to-day rigors of the academic year, now is the time to reflect and consider revamping curriculum to help students live better economic lives.

Imagine how many financial predicaments would be improved if students learned the economic savings of regularly cooking their own meals, buying soda in bulk or passing on a luxury service.

They have choices, but often the messages promoting expensive options are the most enticing.

The consumer/employment/retirement picture has changed drastically in the last decade and will continue to be redefined as technologically driven advertising evolves. So let’s have the financial education we provide our children progress with it.