The Federal Reserve Bank of Chicago and Visa co-hosted the fourth annual Financial Literacy and Education Summit. The program features leading financial literacy experts who will address key issues in the fields of education and personal finance. The year's Summit will covers key topics such as how we can improve our collective economic health, and how to bolster our shared commitment to global financial education. (Replay of event from 4/19/10)
Many college students get themselves into trouble by using credit cards to buy everything from expensive items such as TVs and spring break vacations to everyday necessities like groceries. In 2004, the average college senior had over $2,800 in credit card debt (according to student lender Nellie Mae). Add that to an average student loan bill of nearly $20,000, and these students are handicapped right out the gate with a burdensome level of debt.
To help students get an idea of what their credit card purchases will really cost, AIE has created a True Cost Calculator. The calculator allows users to enter the price of the item and their credit card interest rate. It then shows how much interest they will pay and how long it will take to pay off the item if they only make the monthly minimum payments. Users can recalculate the bill with higher payment amounts to see how the interest and payment period change.
These graphics are great for teaching about the U.S. financial crisis. Some of those featured have also been published here on Positive+Balance Community.
Katz said she would eventually like to see Texas Tech’s core curriculum expanded to include financial literacy courses. This would not only help Red Raiders avoid financial pitfalls, but would send a strong message to other educational institutions.
“We need to spend more time and attention at grade schools, at high school, at the college level, teaching people how to be more fiscally responsible and manage their own personal lives.”
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