The US Department of the Treasury has released a report in which it has stressed on the need for mandatory financial literacy courses for college students. This statement has been released after analyzing the poor financial knowledge and decision making capabilities of students as well as their families. The report has been prepared on behalf of the Financial Literacy and Education Commission to raise the need for a strong financial game plan with every individual.
In the US, more than $1.5 trillion has been accumulated in student loan debt due to the high number of applications for student loan following the rising college cost. This has resulted in an increase in the student loan debt on the 44 million Americans as they have been taking a loan without realizing the long-term impact of their decision.
Many surveys have confirmed that a huge number of students and parents have failed to correctly answer the questions on financial subjects such as personal finance, inflation, interest, risk diversification, and student loan debt. The report highlights that it should be the top priority of all institutions of higher education to empower students and their families to make the right financial decisions. And it will increase their insurance and finance education in the marketplace to give them an edge in their professional life.
FLEC, with the help of the Treasury and Department of Education, discussed the report on Financial education and then consulted nonprofit, state and local governments to highlight the need of upgrading the high education in the US so that college students can learn more about the tactics to gain the financial independence. The report highlights that the effective teaching of financial skills in higher education will play a crucial role in contributing to society as well as the economy on a large scale.
