by Michelle Aranovsky
World Editor

    Our generation has been unofficially dubbed “Generation Broke,” and this is not because we are incapable of earning money. Young adults aged 18 to 34 make up the second-highest group of bankruptcy filers in the nation. The average debt of a young adult has increased more than 55 percent since 1992, while the demographic spends about one quarter of its income trying to alleviate its debt. 

    One reason for this increase stems from the fact that young adults today carry double the amount in student loans than they did ten years ago. However, there is more than one root to the problem. Many young adults, including those coming from Los Gatos, treat money as a replenishable resource without limits.

    It is imperative that students understand the basics behind earning money, keeping it, and causing it to grow. Ignorance is dangerous when it comes to money, the economy, and the future. In order to become better prepared citizens, we must take it upon ourselves to become financially responsible.

     While some states, including Utah, Missouri, and Tennessee, have mandated one semester of financial literacy education prior to high school graduation, most other states, including California, have not. Because the California public education system has decided that teaching financial literacy is not under its domain, young adults must seek information from other resources. Consider sitting down with your parents, or financial guru Suze Orman, for an in depth talk of how finances and investments work. Alternatively, consider creating a “Get Started” Teen Bank Account at the Santa Clara County Federal Credit Union. At SCCFCU, teens who complete a series of online tests about money management will have 50 dollars credited to their account. Now that’s an investment in your future.

(Sources: MSN, SCCFCU, JumpStart Coalition)