Why Personal Finance Should Be Taught In Schools

A great number of people leave institutions, after investing 16 to 20 years of their lives with little or no financial knowledge or investment. This is why the rat race for financial independence might continue for a long time, as the awareness of the importance of financial education is gotten later, rather than sooner.

Personal finance refers to how money is planned for and managed in order to live a fulfilling life. Your financial health is a product of the financial decisions you take.

Personal finance should be taught in school with as much practicality as is needed, with topics ranging from how to access loans, if loans are required at all, to mortgage, labour laws, credit scores, pensions, rent, mortgages, investment and savings plans, assets and liabilities etc. An average student in a University should understand what constitutes a wise financial decision and what would not. Educational institutions are systems used to groom young minds to appreciate life and its elements, and it is important that it is the primary tool for driving financial intelligence.

Benefits of Teaching Financial Literacy in Schools

Habits are the foundation of success and it is always easier to build habits at a young age when character is still being formed. Much more is the fact that there will be adequate time to practice all the financial principles learned, make all the financial mistakes and recover early.

Personal finance is more about behavior than knowledge, so it is important that an actionable plan to manage finances is formed as well.

Saving is easier

As a student, there is a high chance that there will be little or no responsibilities yet, so it is easier to save from the money you get. You can set aside money for emergencies and save towards a future. It is also a good way to keep yourself out of debt.

Unlike the real world, being in school most times come with little pressure to show off. You are more likely to spend less than you earn because there will be little or nothing to spend money on. Financial literacy teaches students the death traps being in debt can be, and how to break free from them.

Giving

Giving is one of the ways to build wealth. You will learn the importance of finances but much more, how to divorce your worth from the money you make. Giving is a principle that helps you stay unattached to money, which invariably multiplies it as well.

Learn the encompassing nature of finance

Learning finances in school helps you know how much of a massive role money plays in life’s events. You will know that money is a part of our everyday life and this further helps you to make the right money decisions when faced with a choice.

Money is a product of value offered. Learning financial literacy makes you desire to have the skills that will bring money to you. You will learn non negotiable financial skills like persuasion, sales, public speaking, making pitches etc.

Be rid of painful consequences

Learning financial literacy will make you stay rid of the painful consequences and stress the lack of knowledge brings. You will avoid fatal mistakes and be able to redeem time.

Peace

Financial literacy brings peace, especially when gotten in time. You will be healthier and happier because of it. You will also learn to appreciate life objectively and the richness it brings. You will have imbibed good habits, become more responsible, proactive and be better positioned for opportunities.

Schools are one of the biggest hosts of young people for a long time. Due to this, there is no better place where they will grasp and utilize financial knowledge than in schools when given the opportunity to. And this makes it the best place financial knowledge should be received.