Headline Aug 10,2014/ ''' HEY- HI........​TEACHER ! : LEAVE THEM KIDS ALONE ! '''

''' HEY- HI........​TEACHER ! : 

LEAVE THEM KIDS ALONE ! '''

HERE is a  'tiny-meany'  test for you all.  Suppose you had a $100 in a saving account  in   Sam Trust Bank,  that paid an interest of  2% a year.

If you leave that money in the account, how much would you have accumulated after five years: more than $102, exactly $102, or less than $102?

This meany little test may seem a little simple for readers of Sam Daily Times. But one survey found that only half of Americans aged over 50 gave the correct answer.

If so many people are mathematically challenged, it is hardly surprising that they struggle to deal with the small print of mortgage and insurance contracts.

The solutions seems obvious: provide more financial education. The British government just added financial literacy to the national-school curriculum, to general acclaim.

But is it possible to teach people to be more financially savvy?

A survey by the Federal Reserve Bank of Cleveland reported that : Unfortunately, we do not find conclusive evidence that, in general, financial education programmes:

 Do lead to greater financial knowledge and ultimately to better financial behaviour.''

This is especially the case when children are taught the subject at school, often well before they have to deal with the issues personally.

Surveys by the Jump$tart Coalition for Personal Financial Literacy, a campaign group, found that:

American students who had taken courses in personal finance or money management were no more financially literate than those who had not.

A detailed survey of students from a Midwestern state found that those who had not taken financial course were more likely to pay their  credit card in full every month (avoiding fees and charges)  than those who had actually studied the subject.

Perhaps the answer is to teach people when the issue are more relevant. That was the conclusion of the Cleveland Fed researchers, who recommended that programmes  be targeted at specific individuals:

Such as those making a house purchase or struggling with credit-card debits.

There is evidence that employees who receive training about the benefits of pension plans are more likely to join schemes and to save more when they do.

But even this approach has its problems.

Consumers enthusiasm for learning about finance is limited. When a free online financially literacy course was offered to struggling  credit-card borrowers, only  0.4% logged on to the website and:

Just 0.03% completed the course. Those who chose to be educated about finances may be those who are already interested and relatively well informed about it.

Making such education mandatory for consumers would be expensive. And who would pay for it?

Governments have many claims on their cash. Financial firms might sponsor such courses but would the resulting advice be entirely objective.

The Honour and Serving of the Post continues. Thank you for reading and don't miss the next one.

With respectful dedication to all the Students, Professors and Teachers of the World. See Ya all on !WOW! -the World Students Society Computers-Internet-Wireless:

''' Financial Education '''

Good Night and God Bless!

SAM Daily Times - the Voice of the Voiceless