I'LL NEVER LACK FOR WORK. There are discouraging words [link revised by the Superintendent] nailed to Newmark's Door.
Finally, the majority of Americans lack basic numeracy and knowledge of fundamental economic principles such as the workings of inflation, risk diversification, and the relationship between asset prices and interest rates. There is also a sharp disconnect between self-reported financial knowledge and financial knowledge as measured by financial literacy quizzes. Even those who give themselves high knowledge ratings score poorly on the quizzes. Moreover, while many believe they are pretty good at dealing with day-to-day financial matters, in actuality they engage in financial behaviors that generate expenses and fees: overdrawing checking accounts, making late credit card payments, or exceeding limits on credit card charges. Comparing terms of financial contracts and shopping around before making financial decisions are not at all common among the population.
In Illinois, the latest unfunded mandate confronting the universities involves financial literacy. With college matriculations far exceeding college graduations, and with dropout rates rising in the high schools, a lot of students, quite possibly a lot of the students who could use this preparation most, will not get it. But we persevere.

No comments: