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  3. Taking on debt is one of the most important economic decisions a person can make. Borrowing to invest in education can yield a l

Taking on debt is one of the most important economic decisions a person can make. Borrowing to invest in education can yield a l

admin2022-11-10  53
问题     Taking on debt is one of the most important economic decisions a person can make. Borrowing to invest in education can yield a large return. However, debt is a risky endeavour, and can carry a high cost if it is not promptly repaid. Compound interest can amplify even small periods of delinquency, leading to lower incomes, scarred credit ratings, even bankruptcy. Yet those who take on the most debt are the young, people who need to make large investments in education and housing, but who generally lack any experience with financial matters. Fortunately, new research shows that courses in finance at school can help solve this predicament (困境，窘况), reducing the harmful repercussions (反响) from taking on too much debt later in life.
    The authors study the impact of a large scale expansion of finance-related courses in U. S. high schools. In 1999, mandatory teaching of economics and financial literacy was minimal. Illinois was the only state which had a compulsory course on financial literacy, and only 10 states ensured that their students covered basic economics. However, over the subsequent decade the majority of states introduced compulsory courses in these areas, including extending the sequence of mathematics classes each student must take to graduate. To measure the impact of financial education, the authors tracked each group of students which were forced to take these subjects and compared their subsequent interactions with debt using the New York Federal Reserve’s Consumer Credit Panel.
    The authors found that increased education about financial concepts broadly lowered the rates of bankruptcy among former students. It also led to a delay in the purchase of their first house (a risky investment at the best of times). Perhaps unsurprisingly, they also found that the effects of education varied according to which subjects were taught. Increasing education in mathematics and finance improved debt outcomes later in life. Students were less likely to be declared bankrupt and more likely to repay their debt on time, although these effects faded with age. Curiously, the introduction of an economics course led to higher debt burdens, with increased rates of delinquency later in life. The authors speculate that this may be because learning about economics provides students with a false sense of confidence (a trait not uncommon amongst professional economists); demystifying (阐明，启发) the debt market enough to encourage participation, but not providing enough detail to warn of the potential dangers. This makes sense as introductory economics largely avoids topics such as compound interest and repayment plans, which are critical to understanding how debt works.
    The benefits of an education in economics aside, the study ultimately highlights the importance of understanding the basics of personal finance—a respect of life that everybody must engage with. As this research confirms, those who understand interest earn it; those who don’t, pay it.
What did the study about financial education find out?
选项 A、Learning more economic knowledge can help people to avoid taking on debt.
B、Delayed purchase of the first house will effectively lower people’s financial risks.
C、Different financial subjects may enhance students’ competence in quite different ways.
D、Financial education enables students to handle personal finance more appropriately.
答案B
解析
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