In Wallethub’s recent review of “2021’s Best & Worst Cities at Money Management,” Dr. James Kahn, Henry and Bertha Kressel University Professor of Economics and chair, Department of Economics at Yeshiva University, was one of six experts asked for their insights about how Americans can manage their money better.
Here is Dr. Kahn’s advice:
Should financial skills be taught as a mandatory part of the high school curriculum?
The best way to teach financial skills in high school would be to include financial applications in math classes. I would not have a mandatory “financial skills” class, as it would come at the expense of needed academic classes.
What is the most common mistake people make when it comes to managing their money?
Too many people do not save adequately and as a consequence carry too much costly credit card debt.
What is the best way for parents to teach their children how to manage money?
Give them a bank account and an allowance (and a checking account and credit card when a little older), with guidance as to what they must pay for and for paying off any credit card balance each month.
What are some short-term financial goals people should consider in order to better manage their money in uncertain times?
They should accumulate enough savings to carry them through a period of unemployment without resort to credit card debt.