FT LAUDERDALE, Fla., Aug. 16, 2012 /PRNewswire/ -- With an average of $45,000 in debt, young Americans are facing tough financial situations. High unemployment has forced millions to depend on credit cards or on parents' financial help. Although most individuals blame current economic conditions for debt among youths, the lack of financial education is a pivotal reason behind financial instability and money problems.
The Treasury Department and Department of Education have measured financial literacy in high schools for the last three years finding that students scored an average of 69 percent in financial education. Howard Dvorkin, CPA and founder of ConsolidatedCredit.org, said this score is the result of no financial education in schools and parents failing to teach their children about money. "Most parents don't teach children the value of money," said Dvorkin. "Often young adults end up learning about finances when they are overwhelmed by debt."
Dvorkin's tips for better financial footing:
Break the cycle of debt: It's important to prevent children from having the same financial problems the parents may have had. Parents should encourage their children to only apply for a credit card once they understand basic finances and are earning some income.
It's never too late to learn: In an ideal world young adults would know how to budget and administer their money. College students need to take financial classes and read about financial education at the learning section of ConsolidatedCredit.org.
Monitor credit card reports: When young adults have a good understanding of how credit works, they are more apt to check their credit reports. Many people don't know what information is included in their reports and those who do, are more likely to make sure their credit is in good standing in the future.
Seek help: Budgeting and paying off debt is not an easy process for individuals who have high amounts of debt or who never learned about money management. Seeking professional guidance may be the key for individuals to eliminate debt and improve their finances in the future. Visit ConsolidatedCredit.org to get a free debt analysis.
About: ConsolidatedCredit.org, founded in 1993, is one of the nation's largest credit counseling organizations and has helped over 5 million people. Their mission is to assist families throughout the United States in ending financial crisis and solving money management problems through education and professional counseling.