America’s schools need a Ctrl, Alt, Delete. (Reset)

Last month, I wrote about how basic life and financial skills are not required to be taught in our schools. We continue to teach the same core subjects that were taught in the 1940’s. The world has changed tremendously but our street smarts have not kept up.

Here are some facts of how America has changed since the year 2000 (as reported in the January/February 2009 issue of The Atlantic Magazine).

Hours of video game per person/per year: 2000: 65 2008: 80
Personal Savings (% of income): 2000: 2.3% 2008: 0.6%
Consumer Credit Card Debt: 2000: $684 billion 2008: $966 billion
Gross federal debt as % of GDP: 2000: 58% 2008: 67.5%
Family Health Care premiums (average): 2000: $6438 2008: $12,680
States with obesity rates below 20%: 2000: 28 2008: 1
People without life insurance: 2000: 39.8 million 2008: 45.7 million
People in Poverty: 2000: 31 million 2008: 37 million
Inmates in custody: 2000: 1.9 million 2008: 2.3 million
Street Price/gram of Meth: 2000: $180 2008: $365
Hours of TV per person: 2000: 1502 2008: 1704
Market cap of GM (General Motors): 2000: $28 billion 2008: $3 billion
Market cap of Apple Computer: 2000: $5.5 billion 2008: $88 billion
* We love our iPods!


I see some trends.

Albert Einstein once said, “The definition of insanity is doing the same thing over and over again and expecting different results.”

I am not saying we need to remove science or math courses; we definitely need to produce more scientists and mathematicians from our country. But not everyone is going to be a scientist. But everyone needs basic financial and life skills in order to be a well functioning adult.

So why are we teaching courses that only a few will need and not teaching courses that everyone will need? I think it’s a good question that deserves an answer.

Our schools have basically been doing the same thing over and over again for a long time. It’s time for an overhaul so that our youth will be prepared for life; a life without credit card debt and health problems due to poor eating/lifestyle choices; a life where a person has the skills in order to implement a life strategy that involves saving money, proactive planning and a basic understanding of finance, accounting and life skills.

Here is my dream. At the age of 18, upon high school graduation, the average American knows:

The basics of money – Interest, compound interest and understands the destructive forces of personal debt. Money is a tool to be used.

The power of a good career – Taking the time to access one’s natural strengths and matching a career path to it. A secret to a fulfilling life is finding a purpose and a good career can often be a big part of this.

Banking – Being able to manage one’s finances, manage a checkbook, read a basic financial statement (most people will have a 401K/IRA but can they read and understand the where and how their money is doing?).

Ethics – Understanding integrity and the power of compound honesty. Knowing that there are no long term short cuts.

Budgeting – Creating one and living on a budget. Having a pro forma for life. Knowing what a pro forma is! Establishing credit and then using credit properly. Understanding that you can’t buy a $500K house on a $50K salary.

Food – Knowing the basics of good eating. Being able to cook some meals. Knowing the destruction that take place in one’s body over the long haul with bad food choices.

Overall health – Having an exercise strategy that becomes a daily/weekly habit.

Investing – Knowing about stocks, bonds, mutual funds and the risks that come with it. CDs and Money Market accounts. Planning for retirement.

Insurance basics – Understanding of health, car, home, disability and life insurance.

Imagine if your average American teen graduated high school with an understanding of these skills. How much better would you feel about our future?

Now imagine if today your average American had these skills. Maybe we’d be in a different place today?

I am not just venting here. I am actually going to do something about it. Stay tuned and/or e-mail me if you want to help. I can be reached at: David@nextSTEPmag.com