Too many students are unprepared for the financial challenges of college life, from deciphering credit card requests to managing student loans. Even though college rates are rising faster than financial assistance awards, most high schools and colleges do not require students to take any financial literacy courses. This is unacceptable and should be changed. College should be preparing students for life and ensuring that they’re ready to manage their financial lives once they graduate.
Why Should Financial Literacy Be Taught in Schools?
1. Money is everywhere
When they move to college, children are pushed into the real world. Their financial knowledge and money management skills will have a direct impact on every important event in their lives, including their chosen career, their first home, getting married, or having children. Money is everywhere, you cannot escape it.
Finance is part of our everyday lives, not just significant events. Every day, we are faced with financial decisions, whether it is where we eat, what we buy, where we travel, whether we go out with friends, or negotiate employment rates. Young adults lack the experience and necessary education to make these important decisions; this is why learning how to manage money during college is recommended.
2. Lacking financial knowledge has repercussions
Adults’ finances are naturally one of the most stressful aspects of their lives. Even the wealthiest people had financial difficulties at some point in their lives. Debt and/or a lack of funds can make life extremely difficult for any person. It isn’t merely a source of daily worry, it’s more than that. Divorce, bad health, depression, and bankruptcy are all possible outcomes of financial difficulties.
According to the Federal Reserve, almost half of all Americans don’t have enough money to cover a $400 emergency. How heartbreaking would it be to lose your job or have a medical emergency but no savings? This could be avoided if people realized the necessity of having an emergency fund, for example.
More than that, 33% of adults in the United States have no money set aside for retirement. Lack of savings is a serious issue, given that most people will need at least $1 million to retire. The most important tip to remember when saving for retirement is to get started as soon as possible. However, people rarely do because they’ve never learned financial literacy.
3. Financial grammar leads to a better, healthier life
Taking into consideration the arguments above, it’s pretty clear that financial literacy classes would be highly beneficial for our society.
- It encourages people to save money. Consider what would happen if your kid graduated from college and immediately began saving for their future. Actually, consider what would happen if we all did.
- Budgeting fosters accountability and awareness. When someone handles an active budget, they will nevertheless examine their spending. They are conscious of their financial resources, which allows them to make smarter financial decisions.
- Calculated financial decisions have a good impact on one’s credit score, which has ramifications throughout one’s life: finding a job, applying for a credit card, renting an apartment, purchasing a home or car, acquiring insurance, and even signing up for their electric bill. Having a good credit score can save you tens of thousands of dollars in interest payments over the course of your life.
- More jobs means more money and that means less debt. Any booming economy promotes such a lifestyle.
- Financial knowledge leads to financial well-being and a healthy attitude toward money. In the end, people’s opinions toward money can have a significant impact on their character. If they’re well-off, they’ll want to give back.
4. Asking for essay help while learning finance shouldn’t be difficult
You might not be able to take personal finance classes and get straight A’s. That’s because writing assignments take a long time to complete. If you’re already late with your assignment, you could search for ‘write my essay in the UK’ on your search engine and schedule an appointment with a professional writer. While they’ll be helping with schoolwork, students can continue learning about finances and perfect their budgeting skills. Learning how to manage money will help you more than writing a financial assignment, trust me.
5. Schools are the perfect spot to learn financial literacy
This survey shows that Americans resort to alternate sources of money guidance and information in place of school-sponsored finance classes. These examples include money management books and debt reduction books. For example, 41% of respondents claimed they self-educated themselves about finances, while 37% said their parents taught them. Only 12% stated their teachers taught them about personal money. Since students spend most of their time in school, the main financial freedom reference should be the classroom. Student’s shouldn’t have to rely upon large economics textbooks or other self-study material just to learn the minimum knowledge needed to successfully navigate the modern financial world.
Choosing the wrong financial path might impede students from achieving life goals such as acquiring a home or raising a family. Financial education promotes healthy family interactions and financial independence from a relatively early age. For all of these reasons, financial grammar should be taught in schools.