The recent financial overhaul is supposed to keep us from repeating mistakes that led to the financial crisis. Regulators hope to do this, in part, by educating consumers.
Knowledge@Wharton discusses these efforts and how lawmakers hope to educate consumers about money. The need for education is clear, but nobody's figured out how to make it happen.
"In a 2007 study conducted by [Olivia] Mitchell that surveyed 1,700 "early boomers" (ages 51-56), 43% of participants could not correctly divide lottery winnings among five people, and 82% of the participants could not calculate compound interest correctly on $200 in a savings account."
Mitchell suggests that financial education in schools would be an appropriate way to improve consumers' chances.
Consumers don't necessarily need to memorize formulas for life, but basic concepts are important. Life is open book, so they just need to know how to find the answer (for example, an online calculator can help with interest calculations).