Paying for College

A big part of turning eighteen years old is that you are now legally an adult. This means you are given responsibility such as the right to vote, the ability to join the armed forces, and we all know that you can finally buy cigarettes. In this country, we consider eighteen years old to be the age at which you transition from childhood to that of a responsible adult able to care for yourself and make your own decisions. For some reason, when it comes to finances, this doesn’t apply.

The Washington Post wrote a story this week titled “High School Seniors Get ‘F’ in Finance“which points out that high school seniors are getting less proficient when it comes to economics and money management. Seniors recorded their worst score in six years with a grade of 48.3%.

For many, going to college will be one of the greatest accomplishments and also one of the most expensive endeavors they will experience in their life. We do our best to prepare them for the academic portion of college but do little or nothing to prepare them for the financial commitment they are about to encounter.

People are trained to understand the financial implications of buying a house and, as a result, most people don’t buy their first home until their middle to late twenties. Sadly, nowadays a college education costs as much as a house. Given that, it’s imperative that parents and teachers educate their children about economics before they graduate high school. In the words of Fed. Chairman Ben Bernanke, “The financial preparedness of our nation’s youth is essential to their well-being and of vital importance to our economic future.”