The Need For Financial Literacy In America

The Need For Financial Literacy In America

Did you know that 44% of Americans do not have enough money to cover a $400 dollar emergency? (Forbes.com) That is over 143,880,000 of the population nationwide. Consequently those people usually take out loans, or apply for credit cads which unfortunately creates higher debt for them, and this ever-growing need of taking out more money just to make ends meet. This affects so many communities, and reflects badly in the environment they live in. It is confusing that we do not teach financial literacy in high schools because they are the most affected after graduating. "Only five states have a personal finance requirement in high school. If we’re not ready to bring financial education into the classroom, then the responsibility ultimately falls on individuals to educate themselves." (Forbes.com) They go into college not knowing about loans, and end up paying high student loan annual percentage rates. "Tuition at public four-year institutions has increased by 213% in the past 30 years and nearly half of the 22 million Americans with federal student loans are either behind on payments or received permission to postpone payments due to economic hardship. Students need a better understanding of what repayment plans look like after graduation so they can make educated decisions about the degrees they are seeking." (Forbes.com) Therefore when those students do graduate and cannot find jobs within the allotted time period before their student loans become concurrent with unemployment, they unfortunately go bankrupt. Credit cards also take so much money away from the average consumer. Many people are not even aware that they owe so much, so many hidden fees and high interest rates appear on their statements. Many also default on their payments, which leads to bad credit scores and homelessness. The need for financial education is growing, but the nation still refuses to accept the responsibility to its citizens.

Some Facts and Statistics:

• 38% of all U.S. households have credit card debt. (Forbes.com)
• 33% of American adults have $0 saved for retirement. (Forbes.com)
• A 2018 FINANCIAL LITERACY SURVEY conducted by the NFCC and sponsored by the BECU found that: 
• The increased proportion of adults who do not pay their bills on time is driven largely by women between the ages of 18 and 34. (NFCC.org)
• Nearly two in five women in that age group (39%) do not pay their bills on time, making them more likely to be subjected to late fees and other penalty charges, which can have negative impacts on their financial health. (NFCC.org)
• The majority of US adults (61%) have had credit card debt in the past 12 months and nearly two in five (38%) carry such debt from month-to-month. (NFCC.org)
• 70% of millennials are stressed and anxious about saving for retirement. (VisualCapitalist.com)
• The average American family has over $137,000 of debt. This includes nearly $16,000 in credit card debt, which, at a 15 percent APR and with minimum monthly payments of $250, would take over 10 years to pay off. (Inc.com)

The Importance of Financial Literacy

Source: CPA Canada

Financial literacy is so important for preventing large sums of debt and, helping everyone have financial stability. "Having little or no knowledge regarding financial management can affect [anyone and everyone] in many different aspects of their life." It is better to learn about finances and the types that can help you save and gain money. Investing money can also help with long term goals. Once someone learns how to be financially stable they can help others as well. "The Financial Literacy and Education Commission (FLEC) have developed a national strategy to promote financial literacy and education. As a result, the Department of Treasury has created a website, www.mymoney.gov, which provides resources on how to make the best financial choices during major life events. The resources within this website provide background information, helpful guidance, and hints and tips to assist with various financial decisions." (OnlineLearningTips.com) Being financially literate can help better prepare Americans for retirement, budgeting, and for emergencies that happen. 

Tips and Tricks From Online Learning Tips:

• Educate oneself by reading financial books about setting financial goals and saving money.
• Get guidance from a financial counselor to successfully manage your finances and reduce debt.
• Take classes within your local community that offer information about finances.
• Set up accounts through websites which provide resources and tools to assist you with making good financial decisions.

Personal Impaction

Source: Tenor.com

For as long as I can remember there has always been a struggle with finances in my household. My mother coming from a foreign third-world country did not understand the difference between a credit card and a debit card (don't worry she knows now!). With my father and mother divorcing it was hard to make ends meet for a single parent household. Because of this my mother would apply for credit cards and loans. Along with her student loans and me following her footsteps on taking out more credit cards, we became so into debt we could not see a way out of the hole we kept digging ourselves into. Thankfully Ive met someone that helps me and teaches me how to control my spending habits and finances.

I chose this issue to spread awareness of the financial illiteracy that many Americans face and how we must start to advocate for the presence of financial classes in high schools to better prepare young adults for their futures. Even to this day I wish I had those classes, so that I would have known how to save and invest my money for my future.

Community Members Who Feel Affected

Jaymee Ortiz / 19 Years Old / Student
"I feel that it is a necessity for students to have or take a financial literacy class, especially in high school because of the transition to college and forward to adulthood. I regret that I was not able to learn any of this, because no knowledge about student loans and payment plans as I enrolled in my University."

Rachelle Ortiz / 25 Years Old / Registered Nurse
"I feel personally affected by this issue as well because I was faced with the harsh reality of paying off my student loans and credit cards as I graduated from college. Unfortunately many of my friends as have the same issue, which makes me want to advocate for mandatory classes to be taken in high school as well as college."

Jacob and Priscilla Tjoelker / 21 and 24 years old / Students
"We both feel the negative impact of not having the opportunity to learn how to manage finances. As we got married we soon realized all the expenses that we had especially moving in together. We now know the importance of budgeting and saving, so we plan to teach that to our children."

Jonathan Garcia / 25 / Healthcare Manager
"It is so unfortunate that around 70% of the population in the United States live paycheck to paycheck. It's a minority mindset to be able to invest and save money wisely.  I had to take it upon myself to learn everything there is about finances and investments, not just for retirement but just for living and surviving. I think the education system is flawed and we must change it in order to have a more knowledgeable community to aid in helping those in need."

Cathan Roque / 23 / Student
"Being a student, I feel most directly impacted in this area because of the so called "student living" situation. I enrolled into the marine bootcamp straight out of high school, and as soon as I got back and wanted to further my education I was met with the hardship of paying for classes. Thankfully I am able to pay for them with financial aid, but I do have to take out loans for school supplies, which makes my debt higher each year. I want everyone to be more knowledgable about what they are getting into when they either go to college, apply for credit cards, and apply for loans."

Sources used:

➽ Berman, Jillian. “Only Five States Require High School Students to Take a Class about Money.” MarketWatch, MarketWatch, Inc., 20 Oct. 2015, www.marketwatch.com/story/teaching-about-money-does-your-state-make-the-grade-2015-10-20.

➽ Curtin, Melanie. “96 Percent of Americans Failed This Financial Literacy Quiz. How Will You Do?” Inc.com, Manuseto Ventures, 10 Feb. 2019, www.inc.com/melanie-curtin/96-percent-of-americans-failed-this-financial-literacy-quiz-how-will-you-do.html.

➽ Desjardins, Jeff. “America's Growing Financial Literacy Problem.” Visual Capitalist, Visual Capitalist, 12 Mar. 2019, www.visualcapitalist.com/americas-growing-financial-literacy-problem/.

➽ Gonzales, Shalena. “The Importance of Being Financially Literate.” Online Learning Tips, American Public University, 3 Mar. 2014, onlinelearningtips.com/2014/02/the-importance-of-being-financially-literate/.

➽ Iacurci, Greg. “Financial Literacy: An Epic Fail in America.” InvestmentNews, InvestmentNews LLC., 2 Mar. 2019, www.investmentnews.com/article/20190302/FEATURE/190229936/financial-literacy-an-epic-fail-in-america.

➽ Kenton, Will. “Financial Literacy.” Investopedia, Dotdash Publishing Family, 12 Mar. 2019, www.investopedia.com/terms/f/financial-literacy.asp.

➽ Kiernan, John S. “Most & Least Financially Literate States.” WalletHub, Evolution Finance, Inc., 3 Apr. 2019, wallethub.com/edu/most-and-least-financially-literate-states/3337/.

➽ Pascarella, Dani. “4 Stats That Reveal How Badly America Is Failing At Financial Literacy.” Forbes, Forbes Magazine, 9 Apr. 2018 www.forbes.com/sites/danipascarella/2018/04/03/4-stats-that-reveal-how-badly-america-is-failing-at-financial-literacy/#5d755eb82bb7.

➽ Stoll, Trevor. “Financial Literacy Statistics: United States & Global.” NFEC, www.financialeducatorscouncil.org/financial-literacy-statistics/.

Violent Video Games Grant Givrad

Action statement:
A important topic in my community is Violent Video games and their effect on adolescents. We know for sure there is a causal link between violent video games and aggression. Compared to violence portrayed in TV and movies. Video games cause more aggressive thoughts and behavior. The use it or loose it principle is important for adolescents between the ages of 10-25 because pruning of brain cells happen. We loose half of our brain in order to focus on the important subjects in our life. If we did not do this then it would be hard to specialize in anything. Many parents are not informed to monitor their children's video games. 

What is the problem today:
School shooting are becoming a common thing in the US and is concerning. The reason why teens play these games is that peer pressure to be masculine has increased and in order to gain the approval of peers they need to have fun killing and being gruesome. Parents contribute by purchasing these video games for their teens and not being home. I personally have talked to many teens who are emotionally removed for death and school shootings. With technology getting more realistic it is hard to differentiate reality from Virtual reality.


Research:
One of the earliest was the 1999 shooting in Columbine, Colorado, where the two shooters were found to be fans of first-person shooter video games. Virginia Tech shooter Seung-Hui Cho was reportedly a fan of “Sonic the Hedgehog,” and Sandy Hook shooter Adam Lanza and had a history of playing shooting games but also spent hours playing “Dance Dance Revolution.”


My Personal experience:
 I have recently presented at Cal Poly Pomona about re hardwiring the teenage brain with Dr.Givrad. She is my mom and has a doctorate in biomedical engineering from the University of Southern California. Together we have done many presentations for students and parents to  inform them about the importance of educating teenagers and parents alike in the dangers of these video games. I use to play Halo and Call of Duty but once i realized the dangers i just stick to card games and reading a book. The countless hours i would spend in front a screen was sicking. Ever since i have stopped playing these games my health has gotten better, i completed the La marathon and have gotten better grades in school. 
I cant believe that company's would want to profit off of children by making them sick and not having empathy to death. We all need to under stand that dangers are everywhere with the internet being able to distribute information all across the world.


Why is it important: 
It is important because our children need to understand that these types of video games need to only be used for adults. I understand in the military they use these games to help soldiers be more aware but for civilians the benefit in not worth the risk. 






"The community feels a need for change"
                                                         -Patty Lopez

"Violent Video games are not for children "
                                                        -Matthew Avlia
Sources
https://www.crescentavalleyweekly.com/news/01/30/2014/doctor-talks-teenage-brains-theyre-wired/

https://www.thelantern.com/2014/02/ohio-state-professor-violent-video-games-can-make-players-aggressive/

Plastic Waste

Plastic Waste

Environmental pollution remains as a major social issue in America today. Pollution from plastics is the specific form of pollution that I decided to address. Plastic pollution affects me on a personal level. This issue also affects my community and the world in general.  In terms of research, plastic pollution has been established to be a threat to life. Marine life is more at risk due to plastics being dropped into the oceans and seas. It has been established that most species of marine organisms are possibly in danger due to plastic waste (Derraik, 2002). This plastics could either entangle the animal or the plastic could hinder biological activities necessary for survival such as breathing. An estimate 5 trillion of plastic waste is found in our seas according to a research done (Wilcox, Sebille, & Hardesty, 2015).This figures means that more and more of our water bodies are at risk. Sea animals and sea birds also risk mechanical injury due to plastics. It also could lead to deaths via the exposure to some of the chemicals which are in the plastics. Marine animals can also be affected by ingesting the plastics. On land, plastics are an eyesore to the human population around it. It also poses a risk of littering the environment. Plastics could get stuck onto various objects around us. It can be on buildings, fences or any other structure.  Air pollution also results when plastics are in our environment. The combustion of plastics emit several toxins that cause pollution. Inhalation of these toxins cause respiratory diseases.

This issue is important to me due to my own interests regarding environmental protection. I usually love visiting the beach, and there was a specific time that I visited it after it had rained for the first time in a long while. I found a lot of debris in the ocean water which made it impossible for me to swim there. The water was also so dirty and looked like it could cause diseases. This meant that the pollution prevented me from being able to enjoy my day to day activities. The reasons I chose this issue stems from the above incident. To add on it, I since then read extensively on pollution. My findings regarding plastic waste pollution drove me into finding out what was being done by relevant authorities regarding to this type of pollution. I have been able to take part in various events which called for a stop in terms of the use of plastics. The long term solution that exists is the use of recyclable forms of packaging. These packaging material should also be degradable which will mean that our planet can easily help in degrading these materials. I was able to talk with some members of my community who expressed how they felt affected by plastic pollution. One member told me how the accumulation of plastics around various places occasionally cause the accumulation of pools of water. This water could be harmful if it were to come to contact with children playing. Another member told me how the pollution has meant that there are declining numbers in fish. This means that many people who depend on fishing could potentially lose their source of income. The pollution also affects tourism since the presence of such debris in water bodies discourages beach sports and events such as surfing. These activities are useful to the community since they generate income and employment to various people.

It is our individual responsibility, wherever we are to ensure that plastics cease to be used. Be it be straws, plastic bags or even plastic bags, our world will be a better place without them. Many organizations are actively involved in pushing for more laws that prevent the use of plastics. We can also join in to ensure our world is a better place each day. The community members I spoke to pledged to be actively involved in fighting against pollution by plastics. I believe this war can be won if we all stood up to be counted.

                       An image showing plastic pollution in a beach in Ghana.

References

Derraik, J. G. (2002). The pollution of the marine environment by plastic debris: a review. Marine Pollution Bulletin, 44(9), 842-852. doi:https://doi.org/10.1016/S0025-326X(02)00220-5

Wilcox, C., Sebille, E. V., & Hardesty, B. D. (2015). Threat of plastic pollution to seabirds is global, pervasive, and increasing. Proceedings of the National Academy of Sciences, 112(38), 11899-11904. doi:doi.org/10.1073/pnas.1502108112