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RE: Modern Economics: Survival Strategies by Business Magnate and Philanthropist Warren Buffett
Excellent article. I have thought for some time that schools do not teach enough life skills. I live (and was educated) in the UK and although maths etc is taught up to 16 (minimum), its application to real world situations was never taught.
I would want to see subjects such as compound interest, credit card interest, mortgages, investment, stockmarkets, pensions etc etc taught at a very high level, so kids are at least aware of them. At 18 I was not really aware of most of these things. I educated myself and continue to learn but most do not bother. As your article states, they expect everything to be given to them, so a job would provide a pension etc!
Education has and always will be key!
Could not agree more. While I am certain there is utility in classes such as social studies, it might pay to thin some of these subjects to allocate room to the life skills you listed above. We NEED these skills to do well in the modern economy, and so many of us do not have them...
I think this is why the wealth gap exists. It's not just that the rich pass their wealth onto their children (although obviously they do and very tax efficiently), it's that they educate their children in these matters do they know how to properly manage money. If this was taught to everyone it may help to level the playing field a little!!
I will also add that the US high school educational standard does not require maths education beyond Algebra I and Geometry. Since math "isn't cool" most students do not study beyond the bare minimum in the USA.
It is only at courses beyond the basics, beginning with Algebra II where subjects such as compound interest are taught and the foundation is laid for how to manage personal finance. The sad truth though is that most students cannot pass Algebra II because their basic math foundation is too weak at the elementary level. There is too much "feel good" and not enough discipline required to enforce precision and accuracy that is mandatory at the higher academic levels.
It is also why so many americans get into trouble with credit card and mortgage debt. They simply don't understand their relationship with the financial contract they have gotten themselves into.