Whether you like it or not, Money rules the world, but how do you manage that money? Why do millions of people graduate high school every year, knowing the Pythagorean theorem and the quadratic equation, but not how to track their expenses, create budgets, and invest? Despite its undeniable significance in our daily lives, personal finance education is often overlooked, leaving individuals to navigate a complex financial world independently.
As a teenager working in the supermarket industry, if I had a dollar for every time I had to explain the difference between a debit and credit card, why you can’t get cash back on credit cards, or even how simple money management works to many different people, I’d probably have around eighty to one hundred dollars. That’s not much in comparison, but the fact that it happened that many times is a very scary thought. No matter the career or educational path you choose—whether it’s engineering, business, or medicine, or what type of academic institution you plan on attending, personal finance skills are essential. Regardless of how much money you earn, you’ll face similar financial decisions, making it incredibly valuable to have a strong understanding of how to manage your money effectively and efficiently.
According to numerous sources, including Forbes and the Associated Press, around 69% of American households have a thousand or less in emergency savings, and around 40% of the population still has credit card debt. These numbers are in no way shape or form an improvement or any positive outcome of the situation.
Personal finance is an essential life skill, and incorporating it more thoroughly into school curriculums could better equip students to handle real-world obstacles. Offering dedicated courses on topics such as budgeting, saving, investing, taxes, and more would provide students with the knowledge needed to make good financial decisions as they grow older, especially in middle and high school. Introducing an assessment similar to the Keystone Exams to measure proficiency in these areas could ensure that graduates leave school with not only academic knowledge but also the practical skills required for daily life. This initiative could promote financial literacy across upcoming generations and help prevent financial difficulties stemming from a lack of education in this very critical area.
Resources for learning about Personal finance and investing:
- Khan Academy: Khan Academy offers a free course on personal finance, where you as the learner can get informed on basic compound interest, debit and credit management, and many more.
- NerdWallet: Offers a list of best budget-making/saving apps for the new year
- Acorns: Offers saving and investing options
Sources:
