This high school class should be mandatory, Anyone with a high school diploma has certainly taken a class on chemistry, physics and history.
But personal finance? Most students don't even come within 10 feet of it. Jim Cramer is sickened by the lack of financial literacy in the U.S.
What could be more important in education than planning for retirement or even learning to balance a checkbook?
Speaking of retirement, most investors probably have some sort of 401(k) plan where they keep the bulk of investments. That is why Cramer is going to start by going over the importance of tax-deferred retirement vehicles such as the 401(k) and IRA. And he's not referring to the Irish Republican Army—he means an individual retirement account.
If your company offers an employer match for 401(k) contributions, than it makes sense to load up as much free money you can get. However, if your employer doesn't match, or they do not have options worth investing in, then Cramer recommended skipping the 401(k) and going straight to the IRA.
First order, according to Professor Cramer? He would require everyone to take at least one personal finance class before graduation.
Too many people begin saving and investing too late, and many people think they have all the time in the world to start. That is why Cramer has crafted three lessons and a caveat for young investors.
First, the caveat; pay off your credit card debt. Then there are three tips Cramer gives to young investors: invest your savings, take investment risks and start saving for retirement.
