This scenario could have been much less dramatic and maybe even avoided altogether if educated Americans understood some basic principles of economics – don't buy what you can't afford and save money aside. Unfortunately, less than one-third of workers 18 to 25 participate in their company's tax-deferred retirement plan, the age group that stands to profit most thanks to the power of long-term compounding. The U.S. savings rate in 2006 was a negative one percent and few young people know about Health Savings Accounts (HSA's), probably one of the most advantageous health care plans available today. Many new college grads don't even get this far – they are still trapped doing odd jobs with no idea how to pursue the right careers for them.

So it's not surprising that, as Business Week reports ("Invasion of the Helicopter Parents", April 16, 2007), the number of so-called 'helicopter parents' micromanaging their adult children's lives is rising. The lack of financial and street smarts creates a situation in which it is seems irresponsible to leave young adults unsupervised.

Some of America's best business schools seem to have come up with a partial solution to this problem. Institutions such as Stanford University and UC Berkeley have created short business programs with a curriculum emphasizing practical skills aimed at college students and recent grads. Within a couple of weeks participants gain a marketable credential and general management knowledge covering basic accounting, finance, marketing, and other business fundamentals. Workshops on whether a graduate business education is something to consider, how to pick and successfully begin the right career, as well as meetings with various company representatives, are part of the experience. Individuals receive an opportunity to evaluate professional choices potentially increasing their future job satisfaction.

Basic economic know-how makes a big difference in the long run. A 23-year old saving $3,000 of his income per year in a tax-deferred retirement plan will have almost $870,000 more at the age of 65 than if he began saving at the age of 35. Those calculations exclude important factors such as inflation, unforeseen market fluctuations, and particular investment choices. But the general conclusion remains true – failing to create a savings account is not affordable.

Saving money aside is less costly than it seems thanks to tax deductions. Funds contributed to a 401(k) or an HSA account are not taxed by the government and make choosing a more affordable high deductible insurance plan sensible. Not taking advantage of such opportunities increases the fraction of income given away to the IRS.

The idea behind supplementary business education could be affordably replicated by liberal arts colleges. Changing mandatory core requirements by replacing a minor fraction of a liberal arts curriculum with a general management seminar would help graduate individuals better prepared to be part of the U.S. economy. Programs currently offered by business schools could evolve to serve more specific needs of, for example, computer science majors interested in high-tech entrepreneurship, or young idealists thinking of a career in the non-profit sector.

Exposing young educated Americans to business fundamentals is an important step to avoiding future subprime mortgage crises, low levels of savings, and other market problems. Young social workers, artists, and programmers would all benefit from acquiring basic financial tools helping them make smarter economic choices. Potential higher levels of job satisfaction would improve productivity levels and everyone's feeling of well-being.