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Lesko Financial: Youth Financial Literacy

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VESTAL, N.Y. -

Transcript of Thursday's August 9, 2018 Lesko Financial segment that aired on Fox 40 News at 6.

Devin
Knowledge is power when it comes to money, but those students heading to high school this fall probably won’t find financial literacy on the course roster.
Greg Lesko of Lesko Financial explains the consequences.

Greg:  
When it comes to teaching finances, U.S. schools, overall, would probably get an “F.” Lots of studies prove that financial literacy makes a big difference in whether someone prospers or ends up struggling with money their entire life. Just knowing the basics goes a long way. Yet fewer than two in ten students learn money management in school and only five states in the u.s. mandate personal finance courses at the high school level.  

Devin
What are the money lessons schools fail to teach?    

Greg:   
Saving rather than spending is one obvious basic. But even if schools manage to get that message across, students rarely hear enough about investing or learn about its benefits. Two out of three people aged 17 to 39 call the stock market “scary.” One remedy might be a course that studies the history of the stock market and explores the basics of compounding - how money invested can really grow over time.
Plus, a discussion of risk versus return-- would also help.    

Devin
What other topics could help teach students about money?    

Greg:
The average college student graduates with nearly $40,000 dollars in student loans. A discussion of how that will impact their lives after college and ways they can reduce incurring it with non-debt alternatives would be a big benefit.
and a timeless lesson for those of all ages is to learn to delay gratificationin other words, keep spending, especially borrowing to spend, in check.