The typical conversations that families have about money seem especially anxious these days. They’re dealing with higher prices at the gas pump and in the grocery store. They’re trying to figure out what they have available for holiday gift-giving, charitable contributions, and maybe even a vacation. As they hear predictions for inflation and a possible recession, they’re asking what that means for them, for their daily lives.
These discussions are tougher if they don’t understand their options or the possible consequences of their decisions. Imagine being a teenager preparing for college, a new parent struggling to provide for your family, or a recent arrival to this country learning to navigate a strange land; the financial barriers to overcome and the opportunities to explore as you pursue your dreams require constant choices.
Unfortunately, bad choices are just as easy to make as good ones. And those bad decisions can result in long-term problems, like overwhelming debt and once-in-a-lifetime opportunities that evaporate too quickly. Imagine the regret and anxiety this could cause.
Imagine, on the other hand, knowing your options and the financial consequences of each decision. You’d be able to understand if a short-term expense would yield long term financial benefit, or if a one-time, expensive purchase would be a sound investment. You’d have a plan, a budget, and an understanding of what you can and cannot do financially.
As with most things, the way to alleviate this confusion and anxiety is through education — economic education. Southern Maryland educators in Charles, Calvert and St. Mary’s counties are providing that education for thousands of students, and are setting an example for how we can prepare our children.
At its core, economics is the science of choices. Understanding the context of a decision provides critical information for how to assess options. Evaluating the implications or consequences of those choices allows for thoughtful and better decisions.
In our daily lives, this is sometimes referred to as “kitchen table economics.” Take, for example, the news — and the reality — of recent disruptions to the supply chain. When you can’t find the products you want because your regular retailer ran out, you have a choice: do you go without the product, or find a lesser-quality substitute at the same price, or locate what you’re looking for but pay more than you used to?
In economics terms, this is scarcity, choice, and opportunity costs. But in our lives, it’s just another decision. Yet knowing these concepts helps us better deal with them and respond thoughtfully. And it helps businesses thrive when supported by knowledgeable, responsible employees who understand finance and its impact.
School districts, schools and teachers in Southern Maryland recognize the importance of providing students with the skills they need to become successful wage-earners, knowledgeable consumers, eager savers, and smart decision-makers. Calvert and Charles counties require that students take a course on personal finance to graduate. And in St. Mary’s County, district leaders, schools and educators regularly seek out professional development opportunities to incorporate personal finance concepts into their teaching. Students in these counties are frequent participants and competition winners in Maryland Council on Economic Education’s statewide economics and personal finance programs, such as The Stock Market Game.
Economics education is the foundation of strong personal finance habits and understanding. The more we teach economic concepts, the more naturally these will become habits that carry into adulthood. And by providing economic education resources and training to teachers, we can make these lessons fun, relevant and memorable — building personal finance skills in the process. For the good of our collective and individual futures, we should all make sure that happens.
Julie Weaver, Finksburg
The writer is executive director of Maryland Council on Economic Education.
