Going to college is a scary thing for people, especially with today’s economic struggles. Student loan debt is not what it used to be. In 1996, graduating students left college with just about $13,000 in loans. Now, the average student walks away with $24,000 to $28,000 in student loans and over two-thirds of students borrow money. Also on the rise, student-default rates have reached an overwhelming 8.8 percent this fall, according to the U.S. Department of Education. And there doesn’t seem to be an end to the increases anytime soon. According to a study released last week, the average tuition for a public university has increased 8.3 percent this fall alone. Over 120 higher education institutions are now charging their students over $50,000 a year for tuition, student fees, room and board and meal plans.

With that being said, students, parents and teachers alike, do not feel that students are prepared financially when they go to college. According to a study put on by the American Savings Education Council, less than half of U.S. high school and college students have a regular savings plan. Out of that half, only one-fourth of those students are able to plan and keep to a budget, and more than one-third don’t pay attention to their spending at all. Many students are borrowing without understanding the basics of finance and as a result, make costly mistakes that can affect them for years after they graduate from school.

Many students say that they look to their family (specifically their parents), friends and colleagues for financial advice; however, many of those people have made plenty of financial mistakes of their own. According to the National Financial Institute in 2007, less than 30% of American adults view their financial knowledge as very good. So with a good amount of Americans not being confident in their financial decisions, how will these new students learn how to keep afloat in such a hard economic time? Well, people are turning to high schools and colleges to educate our youth.

In a recent survey conducted by Visa Inc., 85% of parents said they want a course in personal finance to be a high school graduation requirement. We are not just talking about the basic economics and balancing a checkbook either. Parents want their children to learn important concepts such as the time value of money, risk and reward, interest compounding and the importance of savings. All of these concepts are used by almost every adult on a daily basis, so why not teach students how to deal with these things the right way at a young age? It can’t only help students be more financially prepared and stable for the future.

The problem is schools do not have the time, money or resources to implement finance classes into their busy school year. At this point in time, only four states have made personal finance classes a requirement for their students. A majority of states require some form of financial literacy to be infused with current curriculum; however, the teachers that give the financial instruction have no educational background or training in teaching finance, which ultimately brings us back to square one; receiving flawed education from people who are making financial mistakes themselves.

But there is hope! According to the National Endowment for Financial Education, students who receive as little as ten hours of personal finance classroom instruction per year are able to use the material learned to improve spending and saving habits. Studies also show that students who are financially literate are less likely to borrow more money then they need, have a better grip on spending, and are in considerably less debt compared to those who have not been taught in the subject.

Many people, such as the U.S. Secretary of Education, Arne Duncan, have brought awareness to the rising demand of these classes and have said that the government is looking into ways to help schools pay for these classes and materials for students. Many believe that this is a 21st century skill that will help our country stay in the running for top jobs. With that being said, many financial institutions have been producing various educational programs for schools to use with their students.

One solution that educational software company, CompassLearning, had was creating an online program for high school students to complete in personal financing. Instead of taking up class time and resources, students would take the course entirely online with interactive programs and activities such as budgeting for students.

Jump$tart is also another alternative. It is a national partnership of organizations whose goal is to provide students from pre-kindergarten through college-age youth the resources to become financially literate.

Credit unions all over the country have also done their part to help America’s youth become more financial literate as early as the 1970s. During that time a group of credit union volunteers created National Youth Involvement Board (NYIB) to focus on youth marketing, education and leadership. The NYIB is still providing students financial resources to help them become successful when they reach the real world. The Credit Union National Association has also partnered with the National Endowment for Financial Education to provide financial planning classroom materials and volunteer teachers to at high schools around the country.

Hopefully, as more light is shed on this issue, more and more students will finally receive that financial education they deserve. We want our children to be more successful then we are, so why not start teaching them at a young age the importance of personal finance and savings? I believe it will only help them stay away from the same problems that many of us are facing today.