There is a new generation of young investors On the stage just like a financial contagion spreads.
“It is very easy to see what is happening on the market and say:” I have to go out “, said Tim Ranzetta, co-founder and CEO of CEO Next generation personal financeA non -profit organization focused on the supply of financial education to college and high school students.
However, Most experts agree What to take a blow when the stocks drop and then Miss the gains When shares increase is one of the worst things that new investors can do in periods of extreme volatility.
This is why having at least a basic understanding of personal finance is a crucial lesson for those who start.
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Many studies show a direct correlation between financial literacy and financial success.
In fact, there is an almost economic advantage $ 100,000 per student From the end of a class of a semester in personal finance, according to a 2024 report of the Tyton Partners consulting firm and the next generation.
“We say that it is $ 100,000, but while we are starting to see more and more young people invest, this number will only increase,” said Ranzetta.
A large part of the value has just learned to avoid Credit card sales And get better credit dimensions To guarantee preferential borrowing rates for key expenses, such as insurance, car loans and mortgage loans, according to Ranzetta.
However, lessons on investment To open the way to the creation of long -term wealth, said Yanely Espinal, director of educational awareness of Next Gen. “Teaching students the financial markets is the biggest asset to build wealth.”
Learning the gaps persists
Although more students benefit from financial literacy courses in high school, there are still important learning gaps, according to a new report by Junior Achievement and Missionsquare Foundation.
About 40% of adolescents fear not having enough money for their future, according to the report. At the same time, 80% of adolescents have never heard of a Fico credit rating, a developer of one of the scores most used by lenders, and almost half, 43%, estimate that an interest rate of 18% on debt is manageable.
“It's a bit difficult to get ahead in life if you are managing your finances when you go out in the world of adults,” said Ed Grocholski, director of marketing of Junior Achievement USA.
More states adopt legislation on financial literacy
Meanwhile, the trend towards personal funding courses in schools is steam.
In March, Kentucky became the 27th state to demand that high school students take a personal finance course before graduation, according to the latest data from the next generation.
In addition, there are 43 other bills on the education of personal finance pending in 17 states, according to the next generation Bill Tracker.
Without requirement, students are much less likely to have access to financial education: apart from states with a guaranteed course, less than one in ten receives a financial education before obtaining his diploma, according to Ranzetta.
However, when states pass a guarantee of personal financing, school districts – and teachers – must then implement it.
“Although the legislation is essential, it must be to implement the course with a high -quality study program taught by a qualified and confident teacher,” said Ranzetta.
The teaching of the 9.2 million public secondary students in states that have a personal finance requirement would require a minimum of 23,000 educators, according to an estimate of John Pelletier, director of the Financial Literacy Center of the Champlain College.
“Home teachers (domestic economy) are a dying race,” said Pelletier. “The problem is not that we do not have teachers, which we do not have, they are highly qualified teachers because it is an orphan program.”
