Debt is at a record high level among young adults ages 18 to 29. Aside from college tuition and prices of other necessary expenditures being on the rise, another causation for the high levels of debt is a majority of young adults do not possess the knowledge or the necessary skill set to manage their own personal finances. Through preliminary research, it was found that twenty-one states in the United States claim to require a personal finance course; however, each personal finance “course requirement” varies on definition and application by state. Only ten states require a one semester non-substitutable (not replaceable with a similar course) personal finance course in order to graduate. In addition to this, no colleges/universities were found to require a personal finance course before the completion of an undergraduate degree program. Since these educational intuitions are deemed responsible for “preparing the youth and young adults for the adult world,” research was conducted to determine how financially literate current young adults are and where the source of their knowledge stems from. A quantitative survey of one-hundred-and-thirty-three anonymous young adults (18-25 years old) was conducted to inquire on confidence levels, knowledge of financial terminology, and the application of that terminology to common life situations. Results showed that individuals were familiar with terminology but not its application. The survey also revealed that young adults are not confident with handling large financial decisions, nor do most young adults practice healthy financial habits (i.e., budgeting). In addition to the survey, personal interviews of ten individuals were conducted in order to evaluate more expansive results. The interviewed participants also did not budget and gave various reasons for it: not necessary, do not have major expenses, and/or have an inconsistent income. In the survey and the interview, it was concluded that young adults primarily give credit to their parents versus formal education in the schools they attended/currently attend for their financial knowledge. Therefore, based on the preliminary research and the survey and interviews conducted, this paper further explains the rationale for and benefits of implementing a non-substitutable personal finance course within secondary and higher educational institutions and challenges associated with doing so.

The Value-Added Tax (VAT) is a broad based consumption tax on goods and services. Similar to a Retail Sales Tax, the VAT has the final burden of the tax fall on the end consumer. However, the tax is collected throughout stages of production, which means the government collects it sooner and the retailer is not the only company remitting tax to the government. As of this writing, the VAT is used in over 150 countries around the world. The United States is the only developed nation that does not have a federal VAT. While there are several plans for VAT implementation in the U.S., one of the more promising is the Competitive Tax Plan by Michael Graetz. In it, Graetz suggests a 10 to 14 percent VAT in order to pay for reduction in corporate income tax and an increase of the individual tax filing thresholds to $50,000 for single taxpayers and $100,000 for married taxpayers. As the nation goes further into debt, it is important that the United States looks for alternative sources of revenue. A VAT could prove to be the best option, as it is a proven solution used by many other nations.