Benefits of Teaching Personal Finance In High School

Last Updated on: 26th June 2023, 12:18 am

Knowledge of financial matters is essential for a healthy, successful and safe life, for which the term “Personal Finance” is often used. How to budget, how to save, what are the basic principles of investment and how credit negatively affects our lives, etc.

These are the basic theories, whose knowledge or ignorance determine wealth or poverty in life. In such cases, it is very important that children receive personal financial education from the beginning (especially during high school).

The following points are important in this regard:

Everything is Connected to Money

In our society, many children have to manage their own financial resources after completing their education, while many children have to manage their own financial resources to cover their educational and personal expenses.

This means that many children do not have to take charge of financial affairs until the age of 12. From that point to retirement, the decisions they make are based on their knowledge of financial matters and the child’s management skills, and money will be directly affected.

Whether you have to make a professional decision, get married or have other expenses, your understanding of financial matters plays a key role in all these decisions, but why only important and important decisions finance our daily life? He is still the main character.

Meanwhile, we go out to eat, travel, shop, and negotiate a price cut to make the necessary financial decisions at every step of the day.

Lack of financial experience and knowledge makes it difficult for many of our young people to make the right decisions.

What do the Polls or Surveys Say for financial education?

Many young people believe that they need basic financial education to progress rapidly in practical life.

In a US survey, 63% of students agreed that personal finance education should be included in their curriculum.

According to the survey, 30% of children believe that financial education should start in primary school, 33% in high school, 32% in high school, and only 5% students say environmental education should be given in high schools.

Regardless of the level at which “Financial issues” should be included in the curriculum, most Americans in the survey recommend putting “Personal Finance” on the “Political Agenda“.

Also Read: 6 Ways on How to Become Rich and Famous in 2020

Seventy-seven percent of Americans surveyed believe that politicians should step up efforts to include financial problems in school education, while 67 percent say they want to vote for a candidate in the school’s curriculum. Make personal financial education mandatory.

Tragic Consequences

It is understandable that in today’s world, “Financial Resources” are a major cause of stress in adult life.

Everyone can feel this pressure, even the richest people have felt the pain of lack of funds at some point in life.

Debt or lack of savings, in both cases, a person faces major difficulties in life. And it affects not only everyday life, but also the financial problems that lead to health problems, depression and bankruptcy.

The US Federal Reserve conducts an annual survey called the report on the economic well-being of American households.

One of the questions in this survey is: “If you have unexpected or emergency costs of 400-400, how will you make this payment?” In the Pakistani currency, it is more than Rs.65,000.

A layoff without savings or a medical emergency can be devastating for many people. By clarifying the importance of the “Emergency Fund” to students, they can better prepare for life’s difficult times.

Also Read: Impact of Blockchain Technology In Pakistan And The Fourth Industrial Revolution

A Healthier Life

According to the survey, 51% of millennials say a lack of knowledge of “Personal Finance” is an obstacle to their economic growth. The benefits of financial education cannot be denied:

• Financial education promotes savings. Imagine for a second that your school and college going student starts saving money just right now for their future. Let’s imagine if you have done it in your career.
• Budgeting makes you responsible. If you have a limited income in a month, you will inevitably have to pay attention to your expenses. In this way, you understands the importance of money and decides where to spend it and where not to.