Personal finance management should be included in the subjects taught in primary and/or secondary education. Such a measure will help make sure that young people turn out better versed in savings and even in loans. This can be an appropriate preparation for the students to become responsible and knowledgeable adults in the future who are familiar about how to effectively manage personal finance
To date, there are calls to make personal finance a compulsory subject in schools. Many individuals believe it should be made a part of the academic curriculum. Financial education is perceived to be a long-term solution to inevitable and pressing problems regarding consumer finances. Here are four more reasons why personal finance management should finally be taught in school.
1. Providing financial literacy to young people.
Many think that financial literacy is just about counting and calculating. There is a bothering observation these days that many consumers can perform even complex algebra and mathematical equations. But such a skill is not enough. To be able to make important financial decisions, a person need to be familiar about terms like PPI, APR, and the like. There has to be a natural understanding about savings, banking, and finance.
2. Eliminating personal insolvency and irresponsible borrowing.
There is an observation that most of those individuals who are into debt troubles are those who are not too familiar and knowledgeable about finance. Effective and proper budgeting is a basic in personal finance that can equip people with the right skills to possibly succeed in business and to help dive the economic growth forward. The school can be the best place for young people to learn how to properly manage their own money.
3. Making young people take personal finance seriously.
Teaching young people about personal finance early in their lives will help them take the matter more seriously. Compulsory financial education in schools can help develop interest in handling money properly. Teachers can be influential enough to instill financial values to young people to help mold those youngsters as more responsible and disciplined individuals in the future in terms of finances.
4. Making personal finance management a basic skill.
Not all students can graduate high school and attend college. If not given the opportunity to take financial management classes in higher education, young people will remain unfamiliar and clueless about the subject. If the proposed subject will be taught earlier, more students will have the privilege to be familiar about it. This means more citizens in the future who are financially literate.
Personal finance requires sound decision making process. If not properly equipped with the right knowledge, how can one make effective financial decisions in the future? It is also ideal to train children and teens to manage their own personal finances early in life. By the time they grow up, they will not be stressed about how to handle money and debts. This way, financial woes and troubles of individuals can possibly be reduced and eliminated.