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Emfx t1_irg9f31 wrote

The amount of people who have shown to have a complete misunderstanding of compound interest in the last handful of months is honestly terrifying. This should be mandatory learning in our high schools.

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ArkGuardian t1_irgcekd wrote

It is? There's a lot of things missing from American hs curriculum but compound interest is definitely on there

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Emfx t1_irghn5m wrote

Talked to my sister who graduated a few years ago, and she said she never had classes on it.

I did some Googling, it appears only 14 states require some type of personal finance course to graduate:

  • Alabama — High school students must take a one-year career preparedness course that includes personal finance lessons.
  • Florida — High school students are required to take a personal finance class to graduate.
  • Georgia — High school students are required to take a financial literacy class in their 11th or 12th year to graduate.
  • Iowa — All school districts require students to take at least one half-year personal financial literacy course beginning in 2022-23.
  • Michigan — High school students must take a personal finance course before graduation to receive a diploma.
  • Mississippi — Beginning in 2022, Mississippi will require students to take a college and career readiness course before graduation. Financial literacy is one of the units for students in that course.
  • Missouri — Students must earn one-half credit in the area of personal finance to graduate.
  • Nebraska — Beginning with the 2023-24 school year, students must take at least five hours of personal finance or financial literacy classes to graduate high school.
  • North Carolina — Students are required to pass a personal finance class to graduate.
  • Ohio — Students entering the ninth grade on or after July 1, 2022, must earn one-half credit of financial literacy to graduate.
  • Rhode Island — The state is developing a plan to create statewide standards for financial literacy in public schools.
  • Tennessee — High school students must take a half-year course in personal finance to graduate.
  • Utah — All high school students must take a half-year course on personal finance topics as well as an end-of-course assessment administered by the state.
  • Virginia — High school students must take one-year economics and personal finance course as a graduation requirement.
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ArkGuardian t1_irgn18k wrote

Compound interest is typically taught as part of the exponential functions unit in Algebra 2. A separate financial literacy class is needed but not a requirement to learn about interest rates.

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[deleted] t1_irgii9g wrote

[deleted]

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Emfx t1_irgkpb3 wrote

My sister-in-law was in the market for a house this month, they were looking at some in the $650,000 price range. Everything seemed to be going amazing, and then they randomly wanted around $135,000 down, because they said their $20k current debt is a "major risk". They check every other single box... they're essentially the perfect borrowers. It's crazy out there right now the hoops some places are having people jump through.

I believe they're now working with another mortgage officer who is giving them run-around.

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Bells_Ringing t1_iriie2p wrote

The lender wanted 20% down? That doesn't seem outrageous if they are the perfect borrower. In a rate change environment like this, to get the best available rates, the banks need the best assurances of repayment and Loan to value.

They likely could have out less down but their rate would have been higher if the banks are assessing an increased risk right now.

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