Institut auf dem Rosenberg is a private boarding school in St. Gallen, Switzerland.
Courtesy of the Rosenberg Institute
The price tag is over $160,000 per year, Rosenberg Institute Boarding schools in St. Gallen, Switzerland are probably among the most expensive in the world. So, it’s only fitting that students learn about this money.
But instead of focusing on basic budgeting and credit management, Finance courses The elite Swiss institution’s research areas cover wealth creation, philanthropy, family business and succession management.
“Being able to educate these future leaders gives us the privilege to pioneer curriculum concepts,” said Bernhard Gademann, the school’s president. “Everyone should know about interest rates, inflation, stock portfolios – no one Teach these.”
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In one of the most popular courses, which covers wealth creation and finance, students manage a hypothetical $1 million investment portfolio and present their investment choices to a mock board of directors. family office – Private companies established by wealthy families for investment management.
Class discussions for students ages 12 to 18 cover various asset classes, risk and return, and the power of compound interest.
Gardman said these topics are often excluded from traditional courses because they are considered “non-academic.” However, these ideas overlap with the same concepts taught in subjects like mathematics and biology.
Bernhard Gardemann with students in class.
Courtesy of the Rosenberg Institute
“It’s important to understand its dynamics, its impact and its relevance as it touches every aspect of your daily life,” Gardman said. “All of these things are interconnected and wealth creation should not be ignored.”
“Failing to provide (students) with this information and training is actually stealing their opportunity to succeed,” he added.
Lifelong Benefits of Financial Education
Although most students do not have access to such courses, financial literacy education is being taught in a growing number of U.S. high schools.
As of 2024, more than half of states have required or are in the process of requiring high school students to take personal finance courses before graduation, according to new data from Next Generation Personal Finance, a nonprofit focused on providing financial education to students. born.
Research shows that taking Financial education class Being in high school does pay off.
In fact, the lifetime benefit is approximately $100,000 per student Complete a semester of personal finance courses, according to reports from consulting firms Tyton Partners and new generation.
Most financial value comes from learning how to avoid high interest rates credit card debt and make better use of credit score Tim Ranzetta, co-founder and CEO of Next Gen and a member of the association, said that in order to secure favorable borrowing rates for critical expenditures such as insurance, car loans and home mortgages, CNBC Global Financial Wellness Advisory Board.
However, students are often most interested in invest. “When you ask students how to build wealth and become millionaires, they get nervous and nervous,” said Yanely Espinal, director of outreach for Next Generation Education.
As a result, teachers and schools are starting to prioritize these courses because they have the highest student engagement across all personal finance topics, Espinal said. “Hang them where they’re most interested.”
Still, “when you teach investing, think long-term,” advises Espinal, who is also a member of CNBC’s Global Financial Health Advisory Council. Budgeting, banking, college tuition, taxes, credit management and money psychology are equally important, she said.
“Let’s not leave financial education to TikTok,” she said. “We have to get serious about creating formal education.”
Let’s not leave financial education to TikTok.
Yanelli Espinal
Next Generation Education Outreach Director
Many studies have also shown that there is a Strong connection financial literacy and Financial status.
Students who need personal finance courses starting at an early age are More likely to take advantage of low-cost loans and grants People are less likely to rely on private loans or high-interest credit cards when paying for college, according to a 2018 report by Christina Stoddard and Carly Urban of the National Endowment for Financial Education.
Additionally, students who received financial literacy courses Better average credit scores and lower debt delinquency rates That’s according to 2016 data from the Financial Industry Regulatory Commission’s Investor Education Foundation, which promotes financial education.
Additionally, a study by Brookings Institution In 2018, it was found that young people’s financial literacy is positively correlated with asset accumulation and wealth. net worth Before the age of 25.
Among adults, those with higher financial literacy find it easier to make ends meet in a typical month, are more likely to repay loans in full and on time, and are less likely to be debt-constrained or considered financially vulnerable.
They are also more likely to save and plan for retirement, according to the agency. TIAA Institute-GFLEC Personal Finance Index Based on research conducted annually since 2017.
Meanwhile, in the U.S., the trend toward on-campus personal finance courses continues gain momentum.
An additional 50 personal finance education bills are pending in 20 states, according to Next Gen bill tracker.
