Ohio to Require Personal Finance Course for Graduation

[Au165]

I just saw this on LinkedIn, missed it last week, but I know we have discussed this in the past here and it seemed pretty universally backed that it was desperately needed. I think a half a credit is a start but I hope this eventually gets to a multi year requirement with more advanced topics covered at length.

https://www.cnbc.com/2021/11/04/ohio-became-the-largest-state-to-mandate-personal-finance-education-.html

[GMDino]

(11-10-2021, 11:01 PM)Au165 Wrote: I just saw this on LinkedIn, missed it last week, but I know we have discussed this in the past here and it seemed pretty universally backed that it was desperately needed. I think a half a credit is a start but I hope this eventually gets to a multi year requirement with more advanced topics covered at length.

https://www.cnbc.com/2021/11/04/ohio-became-the-largest-state-to-mandate-personal-finance-education-.html

I like it.  But what happens when those kids find out they aren't making a living wage when they graduate?!?!

Indoctrination!!!!

[Goalpost]

(11-11-2021, 10:03 AM)GMDino Wrote: I like it.  But what happens when those kids find out they aren't making a living wage when they graduate?!?!

Indoctrination!!!!

There are many places starting at 15.00 an hour.  It's just not the instant gratification wage that some expect.  My sister used to do some Human Resources and interviewing in hiring.  She said at times people would come in and ask for. say 80,000, to start.  To which she said, good luck with your search.  People need to understand, from a company's standpoint, you will rarely get that kind of wage to start, when basic stuff isnt even known about you.  Do you show up on time?  Have you even proven yourself yet?  Companies basically train you to get the opportunity of that type of wage.  You don't start out there.

[GMDino]

(11-11-2021, 10:24 AM)Goalpost Wrote: There are many places starting at 15.00 an hour.  It's just not the instant gratification wage that some expect.  My sister used to do some Human Resources and interviewing in hiring.  She said at times people would come in and ask for. say 80,000, to start.  To which she said, good luck with your search.  People need to understand, from a company's standpoint, you will rarely get that kind of wage to start, when basic stuff isnt even known about you.  Do you show up on time?  Have you even proven yourself yet?  Companies basically train you to get the opportunity of that type of wage.  You don't start out there.

[Au165]

(11-11-2021, 10:24 AM)Goalpost Wrote: There are many places starting at 15.00 an hour.  It's just not the instant gratification wage that some expect.  My sister used to do some Human Resources and interviewing in hiring.  She said at times people would come in and ask for. say 80,000, to start.  To which she said, good luck with your search.  People need to understand, from a company's standpoint, you will rarely get that kind of wage to start, when basic stuff isnt even known about you.  Do you show up on time?  Have you even proven yourself yet?  Companies basically train you to get the opportunity of that type of wage.  You don't start out there.

$15/hr is still not a livable wage for a a decent portion of the country. The reality is 10 years ago it would have been a solid wage but inflation has continued to make a large sounding number not a very livable wage. $15/hr is $31,200 a year. If we use the standard formulas for wage to rent ratio that means that someone making $15/hr should spend about $780 a month on rent. The issue we run into is that the national average for rent prices for a 1 bedroom apartment is $1,660 as of the October rent report for a 1 bedroom apartment.

Now I’m sure the knee jerk reaction is “don’t live on the costs where it’s expensive”. If we move it to just Ohio the average rent is $1,040 for that same one bedroom apartment still making it outside the 30% rent to wage ratio that is the standard. This was inflation isn’t unique to housing it’s simply the easiest one to show. Crippling student debt, healthcare costs, food costs and more are crippling the youth of today while other have hordes wealth like no time in the country’s history.

The reason for the great resignation and the fury bubbling with the younger generation is it’s becoming more and more clear that those starting out now will never “make it” without change. One issue is people hear salaries and they use context of when they were that age and think those wages sound large, but they always forget to account for the massive inflation that has rendered those wages…essentially unlivable.

The crazy thing is we have all accepted subsidizing corporate profits. Walmart/Amazon/McDonalds all have resources and tools to help their employees apply for government subsidies because THEY DON’T PAY A LIVING WAGE! What that means is you and I are actually allowing those corporations to grow their profits while we have to subsidize their workforce . The system is broke and for people who haven’t paid attention, the growing resentment by the working class in places like the sub Reddit /anti work should not be ignored. We think political radicalization is getting bad, the class warfare coming down the pipe will be FAR worse.

[Au165]

(11-11-2021, 10:03 AM)GMDino Wrote: I like it.  But what happens when those kids find out they aren't making a living wage when they graduate?!?!

Indoctrination!!!!

The reality is they won’t most likely. With proper knowledge though they may be able to avoid compounding the issue and be able to dig out at some point in their earlier life.

[*michaelsean*]

(11-11-2021, 09:47 PM)Au165 Wrote: $15/hr is still not a livable wage for a a decent portion of the country. The reality is 10 years ago it would have been a solid wage but inflation has continued to make a large sounding number not a very livable wage. $15/hr is $31,200 a year. If we use the standard formulas for wage to rent ratio that means that someone making $15/hr should spend about $780 a month on rent. The issue we run into is that the national average for rent prices for a 1 bedroom apartment is $1,660 as of the October rent report for a 1 bedroom apartment.

Now I’m sure the knee jerk reaction is “don’t live on the costs where it’s expensive”. If we move it to just Ohio the average rent is $1,040 for that same one bedroom apartment still making it outside the 30% rent to wage ratio that is the standard. This was inflation isn’t unique to housing it’s simply the easiest one to show. Crippling student debt, healthcare costs, food costs and more are crippling the youth of today while other have hordes wealth like no time in the country’s history.

The reason for the great resignation and the fury bubbling with the younger generation is it’s becoming more and more clear that those starting out now will never “make it” without change. One issue is people hear salaries and they use context of when they were that age and think those wages sound large, but they always forget to account for the massive inflation that has rendered those wages…essentially unlivable.

The crazy thing is we have all accepted subsidizing corporate profits. Walmart/Amazon/McDonalds all have resources and tools to help their employees apply for government subsidies because THEY DON’T PAY A LIVING WAGE! What that means is you and I are actually allowing those corporations to grow their profits while we have to subsidize their workforce . The system is broke and for people who haven’t paid attention, the growing resentment by the working class in places like the sub Reddit /anti work should not be ignored. We think political radicalization is getting bad, the class warfare coming down the pipe will be FAR worse.

When I was 18 I made $4.00 at Skyline in 1985. That’s not $15 today.

And companies aren’t responsible for what we as a country decide to subsidize. You can say they should pay more and in many instances I would agree, but not for that reason.

[*michaelsean*]

As for the OP I like it. My kids left high school knowing nothing at all about income tax or any of the deductions on their checks. They didn’t know what a W2 a 1040 or FICA or withholding is. Had no idea whatsoever about income taxes. I mean zero. It was hard to explain because they had zero understanding of how it worked. I mean I have to take responsibility because I just assumed they were learning at least the basics.

You know on like sitcoms the kid gets his first paycheck and asks, “Who is FICA and how come he gets my money?” That shit is real. At least in this household.

[Au165]

(11-11-2021, 10:44 PM)michaelsean Wrote: When I was 18 I made $4.00 at Skyline in 1985. That’s not $15 today.

And companies aren’t responsible for what we as a country decide to subsidize. You can say they should pay more and in many instances I would agree, but not for that reason.

Your wage to rent ratio at $4/hr in 1985 in Ohio was still better than someone in Ohio making $15/hr today. That’s the disconnect I was trying to explain, specifically housing prices are a huge issue. The thing we all grew up being told was the single most important piece of personal wealth are completely unattainable for many and that wasn’t the case when many of the people retiring today started out.

Corporations have no ethics, that is why it is our duty to impart them on them via laws…such as raising minimum wages. My point was we shouldn’t be “worried” about prices rising, the go to argument about wage increases, because we are already paying the price via taxes we pay to subsidize their workforce. The fact they have setup tools to help their employees get us to pay them is simply their own acknowledgment they are gaming the system, you know what companies don’t need those services? Ones who don’t willfully know their employees are not paid a livable wage.

People need to stop carrying water for corporations. Trickle down economics are a myth. More money made by corporations stays with the corporations via stock buy backs and massive bonuses to executives. In 1965 the CEO to Worker pay ratio was on average 21-1, last year it was 351-1. Again, the gap between the average worker and the top is getting out of hand and that is coming from someone who is considered an executive. I’m simply warning people that the parallels between the time immediately preceding the French Revolution and now are not all that dissimilar.