Publisher's Note: One of the most significant things you can do to promote Liberty is to support our mission. Please make your gift to the 2022 Independence Day Campaign today. Thank you! —Mark Alexander, Publisher

Jackie Gingrich Cushman / June 23, 2022

Now’s the Time for Financial Literacy

We can control what we do to ensure the next generation has the tools and knowledge they will need to make good decisions in any economic environment.

Today it’s clear that the economy is not doing well. Gross domestic product contracted at an annual rate of 1.5% in the first quarter of 2022, according to the U.S. Bureau of Labor Statistics, and inflation is at a 40-year high.

What we do know is that consumers are feeling the burden of rising prices, and there are still supply chain issues resulting in shortages or delays of products.

How did inflation happen? Well, lots of stimulus money issued over the past two years is chasing the same goods and services, and inflation is the result. The stock market has dropped, and stock volatility is up. The question that we won’t be able to answer for a while is this: Are we going to go through a recession or a depression?

According to the Merriam-Webster online dictionary, a recession is “a downward trend in the business cycle, one that is characterized by a decline in production and employment. This trend lowers household income and spending, which consequently causes many businesses and households to delay making large investments or purchases.”

But a depression is far different, according to Merriam-Webster, which describes it as “a major downswing (far more severe than a downward trend) in the business cycle; one which is characterized by sharply reduced industrial production, widespread unemployment, a serious decline or cessation of growth in construction, and great reductions in international trade and capital movements. Another difference between a recession and a depression, in addition to the severity and effects of each, is that recessions may be limited geographically (limited to a single country), whereas depressions (such as the Great Depression of the 1930s) can occur across many nations.”

As inflation has gained ground, the personal savings rate dropped from 6.0% in January to 4.4% in April, according to BLS. This means that there is not much more consumers can absorb in terms of inflation. They will begin to start deferring purchases, buying cheaper items and finding other ways to cut their expenditures. While employment has held up so far, we are beginning to see news of layoffs.

The only good bit of economic news came from Michigan last week, when Gov. Gretchen Whitmer signed into law a requirement for high schools to include financial literacy in their curricula beginning in 2024. While this will not help with the current situation, it is certainly helping to set Michigan students up for success in the future.

“I am proud to sign this bipartisan bill requiring all public school students to take a personal finance course,” stated Whitmer. “Every young Michigander deserves to know how to budget, save, and invest their money wisely so they can get off (to) a great start after high school, whether they go to college, start working, or open a small business.” Everyone has to make financial decisions, and the earlier they learn how to make good decisions, the earlier they will be able to take steps to ensure their finances go in the right direction.

The Atlanta Society of Finance and Investment Professionals Foundation has been working to help our community thrive by providing people with financial education. We work with many organizations to provide financial literacy training and have posted financial literacy videos online in English and Spanish. Our goal is to help everyone achieve financial well-being. This begins by understanding the impact of making financial decisions. It’s easier to build wealth over a lifetime than to figure out how to recover from bad decision-making decades later. The goal is for people to be in control of their finances rather than have their finances control them.

While this might be a bit too pie in the sky considering where we are today, in a volatile and concerning environment, we know that, over time, the economy will get better; it’s just a matter of when. We can’t control the timing, but we can control what we do to ensure the next generation has the tools and knowledge they will need to make good decisions in any economic environment, and we can pass legislation today that would be beneficial for generations to come. Reach out to your elected officials and let them know that now is the time to act on financial literacy.

COPYRIGHT 2022 JACKIE CUSHMAN

Start a conversation using these share links:

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2022 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.