It’s Hard to Manage Your Credit When You’ve Never Heard of ‘Interest’

When Kentucky state Treasurer Allison Ball and a colleague talked with high school seniors last year about credit cards and other pieces of the personal finance puzzle, something wasn’t right. “We kept using the word ‘interest’ and we kept getting blank stares,” Ball recalled. Finally, she asked the students who knew what interest is. No one did. “Here they were, about to be adults, two weeks before graduation — and they had no idea about interest on credit card payments,” said Ball, a former bankruptcy attorney. “That’s exactly how you get into trouble.” Kentucky is the 44th most financially literate state , according to a WalletHub analysis based on 15 metrics, including the availability of high school financial literacy classes and the share of adults with rainy day funds. And the state has the eighth-highest personal bankruptcy rate, with 345 bankruptcy filings per 100,000 residents . But this year […]