Financial literacy is something schools often neglect to teach but something graduating students sorely need once they enter the real world. With the basic financial skills taught in a personal finance course, students stand the greatest chance of having a successful life after graduating. Consider the following reasons as to why schools should teach financial literacy in schools:
1. Life’s Biggest Decisions Require Financial Literacy
Life’s most impactful decisions all relate to money. Though most students rely on money from their parents during their time in high school and college, upon graduation, they learn the truth about finances quickly. From living on their own in college to working their first jobs out of school, once they graduate they are thrust into a world that demands they know the ins and out of proper money management. However, without classes detailing best practices for handling money, many graduates are unequipped to handle the decisions they will face as adults.
2. Americans Want Financial Literacy Taught in School
Most Americans prefer that students learn the truth about personal finance while they’re in school. Just as parents understand that school provides students with tools to help them excel in every other aspect of their lives, they believe it is the school’s job to prepare their children for financial proficiency. According to statistics, 63% of Americans believe it is a school’s job to teach students finance solutions and tips to for better money management. From elementary school to high school, most parents believe that the earlier schools can instill the basics of financial success to students, the better.
Though students can very well learn financial literacy on their own, few take the initiative to do so. Instead of waiting for students to fall prey to the threat of student loan debt and poor spending habits, schools should set students up for success as early on as possible.
3. Lack of Financial Proficiency Comes with Consequences
Students that fail to gain the finance solutions necessary to make the best money-related decisions will be met with serious consequences very quickly. For example, many graduating high school students are told to apply to college and use financial aid to fund their degrees. However, few students understand the loan the payment process and are often caught off guard when the loan comes due.
Moreover, instead of making sure to only use their student loans as needed, many students choose to spend all of their loan money frivolously on everything from tattoos to new clothes. These poor spending and saving habits often cause students to graduate college several thousand of dollars in debt that could otherwise have been avoided.
4. Financial Literacy is Necessary for a Healthy Life
Personal finance classes show students how to live a financially healthy life. By promoting proper saving habits, teaching the importance of budgeting, and teaching students about the danger of loans, these types of classes can significantly impact students’ futures. With better money management skills, financially savvy students will turn into successful and self-assured adults.
Personal finance skills are crucial for students to live a healthy and happy life. While some are taught these tips at home, all students stand to benefit from the knowledge gained in personal finance classes
