The debate for adding personal finance to the basic education curriculum has always been rather one-sidedly for the cause. It’s no surprise that now implemented in some school systems, the programs are bouncing back some negative feedback that suggests formal education may now be the way to salvation. The Chicago Tribune is reporting that many are praising financial education, but there are significant downsides:
“Trouble is, growing evidence suggests that financial-literacy courses don’t work. Worse, they may actually hurt, in part by making their graduates overconfident about limited skills.”
The point is well-taken. Most of us have learned personal finance the traditional way – trial and error, self-education, and advice from others (both good and bad). As many states begin to implement mandatory financial education, it’s worth considering the potential pitfalls. Check out the article.