Part 1: Young & In Debt.  Avoid The Real Life Drama of Financial Frustration.

It started with one of those letters sent home from school.   Whenever my teens bring letters from their principal home, call me crazy, but I usually cringe as I skeptically prepare for news about the PTA or changes in school operations. Like you, it’s not that I question their ability to run the school, but as soon as I get in the groove, new changes are made.

But this letter was different. I liked what I read, it was glorious news! The letter announced programs for the upcoming year which, much to my pleasure, included new courses on personal finance. In fact, financial planning classes are turning up in schools throughout the country as students and administrators recognize a lapse in financial literacy among American youth.

Sad but true, it turns out that high school seniors know less about finance today, according to a biennial survey by JumpStart Coalition for Personal Financial Literacy. That survey saw a drop in scores from 57.3% in 1997 to 48.3% in 2008.

For those in college, a recent Sallie Mae study on undergraduates’ use of credit reported that 84% of college students have at least one credit card and a whopping 82% carry balances. Worse yet, the median debt owed has grown 74% since 2004.

Part 2 coming soon! An Idea from a Teacher in Texas!