Bernanke: Get money smart, people

[MODU]

I honestly believe there should be a course in 12th grade for teenagers to learn the art of financial management.  Maybe this could be a catalyst:

"Bernanke Says Financial Literacy Important"

Sharpening Americans' financial know-how and skills is crucial to consumers' ability to make smart money choices and is also good for the overall economy,     Federal Reserve Chairman Ben Bernanke told Congress Tuesday.

"Clearly to choose wisely from the variety of products and providers available, consumers must have the financial knowledge to navigate today's increasingly complex financial services marketplace," Bernanke said in prepared remarks to the Senate Banking Committee, which was holding a hearing on the matter.

Consumers with the necessary skills to make informed financial decisions about buying a home, financing an education or their retirement or starting a business will almost certainly be economically better off than those lacking those vital skills, Bernanke said.

Financially savvy consumers also is good for the overall economy, he said.

"Informed financial decision-making is also vital for the healthy functioning of financial markets," Bernanke said. "Like any businesses, financial service firms will provide better products at better prices when they are subject to market pressures imposed on them by informed consumers," he said.

(Cont...)

[David S]

That's something I absolutely agree with. People need to develop an understanding of value investing. During the dot com bubble people were buying any stocks that had a high tech sounding name without realizing that many of those companies had no dividends, no income and no assets. They were financial basket cases, but if the price started to rise everyone jumped on the bandwagon and drove  the prices higher still. The collapse was inevitable. It was just a question of what would set it off.

[opebo]

You should have such problems!

Most americans, of course, cannot invest as they make barely enough to live upon.

[MODU]

The collapse was inevitable. It was just a question of what would set it off.

And I think that was a good wake-up call to the general public.  So far, it seems that they learned their lessons with the current market rallies, since all sectors are growing for the most part.  However, we do have a tendancy to have short memories when it comes to the past, so we're bound to repeat it at some point in the next decade or two.

[Moooooo]

I read this article earlier today.  What Bernanke is saying is very true.  Untill I became involved with politics, news, and began taking actual business courses at school, I was clueless about basic economics and finance.  Id now consider myself to be above average, but just barely.  My goal is obviously to become an expert in both economics and finance.