Financial education is important for everyone. A person should know how to manage his money well. Money is influential in all our lives, this whole world is running on money. The journey of financial education should start in school life only, so that when a student graduate they should have a deep understanding on economy, money management, taxes, saving, budgeting, etc. Financial Literacy is absolutely necessary for everyone.
As per the reports of Forbes in 2022, 87% of teens say they don’t really understand their personal finances. This is the problem we’re facing today, most of the students have no idea how to manage their money well, they don’t understand taxes, budgeting, savings, etc. The need for financial literacy is more than ever. Many school districts in the United States have started financial education for high school students.
What Is Financial Literacy?
Financial Literacy refers to the knowledge and understanding of various financial concepts be it personal finances, money management, taxes, savings, budgeting, bank accounts, credit scores, etc. The whole idea behind financial literacy is to make people aware of their finances so they can make good decisions with their money and utilize it properly.
You must be financial educated or literate in order to navigate through the complex world of finance and make some good decisions that aligns with your goals and values. Financial education should start in the early age only. Parents should start teaching their kids about money, budgeting, and savings.
Financial Education for High School Students
Financial Education is a must specially for high school students. This is the perfect age to understand the complexities of finance world. The need for finance education is more than ever. As per the information available, twenty-five U.S. states require financial education for high school students to graduate; many more have bills pending.
If you already have a financial education program in your school then that brilliant. If there is no financial program in your school then below are a few topics that you can start reading about. Following are the topics that you can start reading and understanding for financial literacy.
- Start with understanding basic financial concepts such as what is incomes, expenses, cash flow, etc.
- Learn about Budgeting and money management i.e. how to create a budget, how to track expenses, what is savings and emergency funds, etc.
- Understand the type of bank accounts i.e. savings account, current account. Learn about online banking, credit, and debt management.
- What is credit score and why is it important?
- what type of investments are there?
- Understand investment strategies, retirement planning, retirement accounts, compound interest, etc.
- Taxes are extremely important, learn about Income tax basics, Tax deductions and credits, Filing tax returns
- Understand the Real Estate and Homeownership. Read about Buying vs. renting, Mortgages and rates
So these are some of the topics that you can start reading. Financial education does not come in a day of two. You have to be patient and make a study routine for yourself. Give 15 to 30 minutes of your day to financial education and see what good changes it brings in your life.
Is Financial Literacy Important for Students?
Financial Literacy is your biggest skill specially in today’s world. The world is moving so fast, you must have a deep understanding of finance in order to make inform decisions that align with your goals and lifestyle.
Financial education is extremely important for students, it’s a life skills that allows them to make the good use of their money. On a student jouney, you may have encounter various type of financial debt, such as student loan, etc. Without the understanding of finance, you won’t be able to handle things on your own. This is why you must have a good knowledge of finance to make good decisions.
Budgeting is an essential life skill for students specially in college life. There are various type of expenses in a student’s life such as tution fee, housing, everyday costs, etc. With financial literacy you will be able to budget your money well. Your money works for you when you know how to budget, how to save, and how to invest.
There are many financial frauds that happens everyday even with highly educated people. These frauds happens due to lack of financial education. Understanding basic concepts like credit score, interest rates, and financial scams enable students to avoid committing financial mistakes and protect themselves.
Conclusion
Schools should start having a financial education program in academic curriculum to make students more aware of money management. Graduates should have a deep understanding of how money work, how economy work, so they can prepare themselves accordingly.