It’s sad when you think about it. We live in a country where I’ve heard immigrants say “the streets are paved with gold” and “the opportunities are endless.” Yet there are hundreds of thousands, if not millions, of Americans born and raised in the United States who live in poverty and can’t seem to get out. Why is it that when these children of lower-income families grow up, many of them can’t seem to get out of their cycle of poverty? One of the many reasons I believe surrounds a lack of financial literacy. Understanding things financial--how money works and how your values and goals contribute--is, in my opinion, critical to being able to lead a life that is going somewhere other than in circles.

Most children grow up in homes where financial matters and anything pertaining to money is rarely if ever discussed. Money, after all, seems to be a taboo topic that no one wants to talk about. Why is this? Money itself is neither good nor bad. It is actually the use of money and the attitude toward money that is the problem. Consequently, our children are growing up without much if any direction from their parents on the use and handling of their earnings. This is understandable, because their parents probably had no training either and may be feeling inadequate for teaching these skills.

So, if the parents aren’t teaching their children, are the schools taking on this responsibility? Our public school systems in Connecticut teach very little about money management, credit, investing, banking, and other important topics that our young people need to know. The only exception is when a student who is weak in math gets placed in a business math class that introduces checking accounts management. Course electives on personal finance do of course exist in Connecticut public schools, but most young people are more interested in spending money than in learning about what they need to do with it.

So our children grow up and move out, and then they kind of learn as they go about things financial--either based on the information of people they know or of other so-called experts. Predatory lenders and credit card companies preyed on their ignorance, and before they know it they’ve been evicted multiple times and have credit scores under 550. They may be giving out their personal information to agencies and telemarketers without even realizing how valuable that information is when put in the wrong hands.

Financial literacy is important. Education builds confidence and provides information, which is why many nonprofit organizations are offering free classes on goal setting, investing, credit card use, and predatory lending.

We need to financially educate our children as much as we educate them in areas of history, science, math, and literature. A financial education will be something that young people will absolutely, positively need at some point in their lives. And the return on that investment is priceless.

For more information please contact Andrea Hardy at the CRT H.O.M.E. (Home Ownership Made Easy) Center. She can be reached at 860-560-4210 or hardya@crtct.org.