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How To Avoid Future Recessions: Reforming High Schools

March 1, 2008 | Author: Travis | Filed under: Economics

Last night I had an hour long chat with my mother about the economy and the looming recession.

I admitted have no sympathy for the vast majority of families “suffering” through the growing recession. Here is why:

To every debt ridden family with two kids and a brand new SUV, I say “You are idiots”.

To every quad-credit-card wielding shopaholic carrying a $2000 negative balance I say, “You are an idiot.”

To everyone in college graduating with a degree in something you aren’t passionate I say, “You are an idiot.”

To the 31% of Generation Y workers (born 1978 or later) who are saving for retirement in their 401k, I say “You Are Not Idiots”.

To everyone else in the United States who is spending more than they save I say, “You are idiots!”.

My mother said that we need to change the social structures that currently govern the way we live our lives. We need to protect people from themselves.

I agree to some extent. I believe that we need to teach high school students basic financial foundations. We need mandatory classes.

We need to stop being idiots.

Off the top of my head I believe all high school curricula need to include:

Online Banking and how to pay bills automatically
Savings accounts and choosing a bank
Why you need good credit and how to build it.
What a credit card should be used for.
How to balance a checkbook
How to file your tax returns
How to finance your college education.
401 (k) and why you need to start planning for retirement now
A short history of the stock market
Defining basic terms, (ETF, IRA, Index Fund, Bonds, Mutual Fund, NASDAQ, S&P 500, Dow Jones…)
How to easily invest your money using the internet
How to avoid getting scammed
Mortgages. A brief summary.
Living beneath your means
Average salaries of different college majors
Job interviews and writing a resume
Making money online.
Entrepreneurship 101
Alternatives to College.

Each class would focus on a single issue and passing the class would be required for graduation.

The effective use of this kind of class could potentially require a mass reeducation of our school system. Most teachers are in no position to preach advice that they themselves do not understand. So the government, both Federal and State, need to step up and create a class curriculum.

Yes it is optimistic to imagine the possibility that a single course could be universally applied across the nation. But with the amount of money that our government loses to due to citizen dumbassery, I think the status quo is criminal.

If the school wants to continue to receive Federal funding, make the class obligatory.

The course needs to be idiot proofed. While there are many great teachers out there who would do a terrific job, there are far more teachers who are inadequate in the deepest sense of the word.

So give them a teaching package full of new and interesting content. The government could hire a ridiculously priced design firm and make it look sexy. Spend $5,000,00 a year making the class awesome.

Recruit top professors from around the country as consultants.

Set up focus groups, revise content and release a new package each year.

Create prizes and awards for student entrepreneurs. $100,000, national recognition, internships, free tuition at any school in the country, etc.

Show the students how they directly benefit from learning the information taught in the class and they will respond.

Make it pain free by making the grade based completely on attendance and participation.

Conclusion:

Almost everyone agrees that the American education system needs to change. There have been lots of ideas. Most have been unfeasible and/or stupid.

The government needs to step up and I believe that directly funding the creation of practical classes for teachers to use is a great way to initiate change. This system is nothing even close to a cure-all but it is something new and different that inspires new debate.

Coming next week:

Essential Common Knowledge For The Modern College Student

Best Books To Unstupify Yourself

Assorted Awesomeness

-Travis Taylor

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