Financial Literacy in Economy

It knows deliberately that In the United States of America school education doesn’t enforce a form of education of Financial Literacy in Economics. Financial literacy in Economics is the basic knowledge one citizens need to functionally work in the economy itself. Financial Literacy provides a benefit for those who are provided with the educational resources. Financial Literacy in citizens has been proven to create a more effective citizen than those that aren’t educated in Financial Literacy. If Financial Literacy would be invoked in the education system, American students would be provided skills and knowledge in; investing, management, debt, saving etc.The importance of it is seen through the skills that are most definitely utilized in society itself. Many American currently struggle with the form of bills, paychecks, debt, any financial situation, etc . At times they lose American averagely lose 1,000 Dollars in income due to lack of management. There are only a total of twenty-one states in the United States of America that currently provide Financial Literacy in economics. Six of these states in which a financial course is required to be taken. The other fifteen States require financial coursework and a course taken in itself. However among the twenty-nine states currently ther status is “ Personal finance is not included in state standards’ ‘ economics of California. One of the many counties in California that suffer the lack of financial economic literacy is Orange County, Los Angeles . In Orange County, education programs are under fire and pressure, not only from their students but also parents with the need of educating students in Financial literacy. The concern and worrisome is due to questioning whether students are actually being prepared to financially manage their own income in the future. Many of their parents are afraid that without financial literacy their students will struggle in transition to adulthood. Other long term effects citizens encounter in lack of basic finance education is management of energy saving and credit score . Another issue in Orange County is facing is financial management of their money in unexpected financial economic situations, like a pandemic. With the limited knowledge of finance, Orange County has little to no trust in their citizens spending their money wisely if the economy were to reopen. In this essay I will talk about the lack of Financial Literacy of the Economy in the education system of orange county and the impact it has for its citizens and its economy itself in Los Angeles, Claifornia.

One of the main struggles American citizens face when they transition to adulthood is the skill management of money, Financial. Many parents and students are concerned that they don’t have the sufficient amount of knowledge or education in Financial literacy of the economy to have a bright future. Such a skill can provide the benefit of citizens to not stress and have an upperhand in their future income. According to Western & Southern Financial group there are five common problems that college students financially face(Paragraph Two ). Which are not taking advantage of creating financial aid, basic budget, management, credit and planning. Many college students’ disadvantages in lacking Financial literacy in the economy is having an upper hand in their future. The reason behind adults graduating college having an immense debt at all is due to not being informed of applying or running for government loans, grants, aids like fasasa or work study programs. Another thing is that students don’t know how to keep a budget in which they spend their money on necessary things rather than wants. And With not informing our students when they transition to college there is a priority shift towards other things like college. Instead of creating a retirement in the futter.(Paragraph One- five ) If students were to be given financial education in which parents in Alamitos high school are worried about, they wouldn’t have to face debt, have a head start income wise and have adequate managing skills to plan the financial future they want. In Los Alamitos High School In Orange county California, there has been an uprising of parents and students complaining to the school board of their lack of Financial education in their system. Jessica Pollock’s Son Adam, who graduated from Los Alamitos High school,ains how the school’s lack of financial Literacy in economics creates an impact or toll in the long run for her son and the students. Jessica Pollack, a technology teacher, concerns over the issue that “ .. kids are exposed to computers and technology all the timeYet when it comes to buying the computer and financing it, they are clueless”(Paragraph five) . Jessica Pollack Is one of many parent citizens in Orange county that are concerned about their children not getting the adequate education when it comes to transitioning from teen to adulthood. Parents of Los Alamitos High school are concerned that this lack of education will create the long run impact especially during the time of being a college student. Financial literacy is a greater factor towards the brighter future of a further generation. I have proved skills that students can hence utilize in their daily lives finally when they shift towards adulthood. Being able to dodge the average income loss, det and bill an american citizen commonly has.

The long term effect of Financial Literacy of the Economy can be seen in the citizens and families of Orange County California during an economic crisis. . One of the many education skills the finance teaches is emergence saving funds. Emergency savings fund is a savings account where you put aside a certain amount of money to be utilized in an unforeseen situation. The article “Financial Literacy is Key to Self -sufficient” by Orange county Community Foundation, informs that many of the low-middle class citizens in Orange County lack Financial Literacy in Economics. In the county A Club Buoy and Girls Club has taken the challenge to apply and in knowledge there youth finance. Area Director of Boy and Girls Club of Capistrano Valley, Nicole Watson, states that “ ..do not have enough food to eat or clothes for their children”(Paragraph Ten ). Another program institutes in the county are the Charles Schwab Money Matter program where they teach the responsibility and independence of building money management . Yesina V. Ocha, director of Financial Stability and Community Engagement at Delhi Center, states “ low income citizens in Orange County are more vulnerable to financial change”.(Paragraph elven ). Both Nicloe Watson and Yesina V. Ocha agrees in the term that low to middle income population in Orange county are vulnerable to change or unexpected final changes as they have limited knowledge in managing and saving their money when it comes to their emergencies or paying bills in the future. Due to this common situation revolving around citizens and students having limited financial education aboth youth programs instituted in Orange county california are devoted to ignoring her students the important and long run effect of money management. Aloth money management is an underestimated skill, it creates a door that provides people to know how to efficiently store their money. When time are to get hard citizen will be peprea and won’t be affected if a shift in economic crisis where to occur

Many Orange county citizens are struggling financially now during the pandemic. Ever since March of 2020 the rapid closure of the economist took a toll on the firm and household. Many of these business reposise lead to the increase of unemployment. With unemployment increasing due to the pandemic, and the tunnel of quarantine not having an end, many citizens especially in Orange County are facing Financial issues. According to the Voice of Orange County, many residents or Orange County are fighting for unemployment checks and food during this pandemic. Orange County Board of Supervisors at the time are currently trying to fund covid-19 relief checks for the county. Many of the board directors were considering the idea of reopening the economy for example Disneyland to ease their citizens , however many oppose such action because they don’t trust the limited financial education their citizens have in spending their income wisely in hard times like these . UC Irvine Economist Ami Glazer states that “ the other problem is if people spend money on going to Disneyland they’ll spend less money on other things’’.(Paragraph #) . Many citizens are struggling financially due to the decrease of employment. With such it has money tight. And although the Orange county in Los angeles has been funding comic relief checks for their residents the lack of Financial Literacy is taking a toll on them. If citizens were to be educated in the minimal basic management skills in finance the county itself wouldn’t have any trust issues with their residents when it came to managing their economy. Such financial literacy skill impact can be seen through such financial crises. The benefits in which they withhold in such a situation is the effect of employment.

Our management of money and knowledge of finance of education lackis in the United states. More specifically in Orange County, Los Angeles, California. Being the center of pollution that has low to middle income class and education institutions with no Financial Literacy it creates a long term effect throughout the lives of these citizens and the economy . Limited knowledge in financial education plays a crucial part in Orange County citizens knowing how to manage, save and budget their income. Many students and parents worry about the education provided. In which such education literacy creates an impact in the economy for future generations. It also creates the long term effect low income families face when there is a hard time in economic finance. However, there had been a rise in where citizen, and students voice their complaint in the need of final literacy of economics in their education system. As Well institutions taking the change upon themself to teach the youth pollution the importance of finance.

Although Financial Literacy in economics isn’t forced or instituted in our education system it doesn’t mean that it doest create long term effects. Final literacy provides the skill of a resident or citizen of the United States are expected to have to stove in the economy financial. To serve financially. Having knowledge of managing, saving and budgeting skills etc. would create a better, easier stress life. Teaching us to overcome obstacles like debt, unexpected economic crisis or having a mortgage.

Work Cited:

Hoss, Shelley. “ Financial literacy is Key to Self-Sufficiency.” Orange County Community, foundation 07 April 2020, https://www.oc-cf.org/financial-literacy-is-key-to-self-sufficiency/. Accessed 22 October 2020.

Diamond, Phil . “ Annual Financial Report For the end September 30 2018” CPS Orange County Comptroller, 30 September 2020, https://www.occompt.com/download/Citizens%20Annual%20Financial%20Reports%20(PAFR)/PAFR_2018.pdf. Accessed 22 Ocutber 2020

Brotz, Daniel. “ Why Most High schoolers Don’t know How to Manage Their Money” U.S News and world Report, 09 Octuber 2012, https://money.usnews.com/money/personal-finance/articles/2012/10/09/why-most-high-schoolers-dont-know-how-to-manage-their-money.Accessed 20 Ocuber 2020

“ Financial Literacy Costs: Causes, Consequences“ Financial educator NFEC. 2020 https://www.financialeducatorscouncil.org/personal-finance-company/ access 24 October 2020

Custodio, Spencer and Ellatar , Hosam. “ Orange County Unemployment Rate Remains High as

Potential Second Coronavirus Wave looms.” Voice of Orange County. https://voiceofoc.org/2020/10/orange-countys-unemployment-rate-remains-high-as-potential-second-coronavirus-wave-looms/.Accesd 24 October 2020

“ Financial Assistance” Orange County . Our Community, Our Commitment. 13 October 2020. https://www.ocgov.com/residents/financial/. Accessed 20 October 2020