Why Students Need to Learn Financial Literacy

Five Reasons Personal Finance Should be Taught in School 

A lot of the things we use in our daily lives we learn from our days in school. How to read, how to write, how to add and subtract… the list goes on. But there seems to be one important thing that school’s miss out on teaching: personal finance. 

In this day and age, more and more people are realizing the need for personal finance to be taught as early as high school.

Here are five reasons why financial literacy and education needs to be taught in school.

1. Financial literacy should start early 

It’s never too early to learn about finance. Things like budgeting allowances, opening a bank account, even filing taxes are all essential life skills we need in our lives. Learning how to properly manage one’s money from a young age helps prepare children for the real world. The younger children learn, the more time they have to strengthen these skills and create wise financial decisions in the future.

2. Financial literacy is a skill 

Just like reading and writing, financial literacy and management are skills. No one is born with the innate ability to understand and manage money, and not all parents have careers in finance or banking to properly teach their children. Teaching financial literacy in school can equip children with skills they otherwise may not learn at home. 

3. Money affects everything in our lives 

We have to admit it, money affects everything we do. From the parking we pay, the food we eat, the place we sleep, even the shows or images we consume, almost every single aspect of our lives requires money. Not to mention the bigger decisions we make like getting married, choosing a home, and having children.

Knowing how to properly budget money, saving up, calculate interest, deduct pay withholdings, and invest can help children manage how they use their money to ensure they don’t go into financial deficit. 

4. Gives you greater job prospects 

Because money is involved in almost every aspect of our lives, having a strong understanding of it gives students access to more jobs in the future, regardless of whether the job is inherently finance-related or not. They will be able to succeed in careers such as sales, operations, even careers in the food and beverage especially if they can prove they can manage finances well.

5. Lack of financial literacy can have consequences 

Not knowing how to properly handle it can lead to major problems in the future. Having well-off parents is not always a guarantee of a financially secure future. Even some of the richest people have fallen into debt because of mismanagement of funds. Those who are not adept at financial planning and management can fall prey to Ponzi schemes, spend more than they are making, or even face debts due to credit card mismanagement or non-consolidation of debts which will lead to payment of several interest fees.

Apart from debt and bankruptcy, the stress stemming from dealing with financial problems can lead to separation from your spouse, poor health, depression, and anxiety. Yikes!

We all need help with financial literacy, even in adulthood. If you need more tips, browse through our financial advice articles!