Current Connection: 1.2

 In Richard H. Thaler's New York Times article entitled, "Financial Literacy, Beyond the Classroom," he argues that most Americans are "financially illiterate" and that their education is failing to help them keep themselves out of financial trouble.


Additionally, in the article, Thaler states, "Those who receive [financial education] do not perform noticeably better when it comes to saving more, for example, or avoiding ruinous debt." High Schooler's basic financial education, a poor excuse for an understanding of finances, seems to serve them no purpose. This is caused by a failure in America's educational system, a system notorious for its numerous shortcomings.

Later in the article, Thaler states, "In the meta-analysis, even the most time-intensive programs — those with more than 24 hours of education and training, almost the length of a college course — had no discernible effects just two years later." Within a couple of years learning the information, the students mostly forget the information, likely due to lack of use; therefore, the attempt to teach them was a failure and there was hardly a point in them learning the information in the first place.

Furthermore, Thaler states, "Although no approach offers a panacea, three types of efforts seem worthy of more attention." Thaler goes on to explain three ways in which financial education could be better delivered to students, none of which are being tried in a large, meaningful way. If new ways of learning and educating are not tried, then how can the current system ever be improved upon?

On a related note, the quote about the most time-intensive programs lasting over 24 hours reminds me of the idea that one must spend 10,000 hours doing one task to become a master at it. Obviously, this is not meant to be taken literally; however, how can one expect to become truly good at something when so little time is spent learning. One could feasibly get 24 hours of experience in and area without even sleeping. Certainly, the student must spend additional time outside of and after his or her class expanding his or her knowledge and experience in order to become truly good at whatever it is that he or she is trying to accomplish.

In conclusion, the current methods of delivering a financial education to Americans are almost completely ineffective and new methods exist and should be attempted.