The Jonathan D. Rosen Family Foundation was formed in 2009 by noted entrepreneur Jonathan D. Rosen to address financial literacy education and financial independence training. Our goal is to provide individuals with the knowledge necessary to make sound financial decisions. This knowledge will improve their lives and ultimately their communities. Without these essential skills, many will be ill-prepared to tackle the difficult economic road ahead. The JDR Family Foundation operates under the rules and provisions of a not-for-profit 501(c)(3), and is governed by a board of Trustees.
Teaching children financial literacy is crucial in developing a strong understanding of money helps them make smarter financial decisions in the future, and is an essential tool for individuals to gain financial freedom and success in today’s society. Many students are simply uninformed about money management and the importance of investing and preparing for the future. This lack of financial education is reflected by frivolous spending and poor decision making by today’s youth. With the current economic climate, financial literacy for children is more important now than it has ever been.
Can we count on families to teach our young population? We don’t ask parents to teach math and physics. Why should they be expected to teach financial literacy? If we look at the data concerning our next generation of adults, we see that 18- to 34-year-olds nationally are more likely to be less financially capable than older Americans:
- 23% spend more than their household income,
- 68% do not have money set aside to cover expenses for three months (the so-called rainy day fund),
- 34% engage in non-bank borrowing (e.g. using payday lenders)
- On an average they can answer only 2.6 correct out of 5 questions covering concepts of economics and finance expressed in everyday life.
Can we count on our schools to teach children personal finance? School systems are facing greater economic challenges than ever before. Time and budget limitations have forced certain elements of an already inadequate financial curriculum to be cut further. Life skills classes like home economics and personal finance have been pushed aside in favor of other obligations. Unfortunately, without essential skills, many will be ill prepared to tackle the difficult economic road ahead.