Financial literacy is a basic life skill that has a direct impact on personal well-being. Basics of personal finance like money management, savings, investing and debt will lay a strong foundation for money habits if imparted from a young age.
Learning important money skills at an early age provides a lot of opportunities to apply them in real life and can mean the difference between prosperity & poverty.
High school teaches various subjects—all valuable to know for sure. But how often on a day-to-day basis do you need to calculate the area of a trapezium or recite the periodic table? Personal finance is a necessary life skill that must be taught in schools. Here are three reasons why:
Concept of Evolution of Money
1. Money is everywhere – At 18 years, kids are thrust out into a world where each and every step they take from college to retirement will be directly impacted by their money management skills. And it’s not just the major decisions; whether it’s where they eat, what they buy, going out with friends or negotiating prices, every day they are faced with financial decisions. Young adults lack the experience and education to make these decisions – big or small.
2. Teaches awareness & responsibility – One of the positives that come with having a financial education is the sense of responsibility and consciousness that one will gain. People’s attitudes around money can be instrumental in shaping their character, plus promotes the desire to give back.
3. Where else will they learn it? – Young adults mostly learn from their parents who are generally self-taught while others turn to alternative sources for money advice and information without enough background research. Their lack of financial knowledge might have painful consequences.
Concept of Save-Spend-Share
Financial literacy classes in school, teach students the basics of money management: budgeting, saving, debt, investing, and giving. That knowledge lays a foundation for students to build strong money habits early on and avoid many of the mistakes that lead to lifelong money struggles. Despite some debate over just how young is too young when it comes to learning about personal finance, or where that education should occur, high school is definitely the right place to sow the seed.
Vidyadaan school has been a pioneer in implementing innovative teaching methods that enable its students to have a holistic learning experience. Introducing finance to students from Grade 5 is a step forward to achieving the school’s mission and vision.