BY LAURAINE NICHOLLS
Just recently, I had an after-dinner talk with my parents and younger sister about balancing a checkbook. Unfortunately, not many other people my age can say the same.
The purpose of getting an education is to strengthen minds so that people will easily learn to deal with challenges that may arise in the future. One of those challenges may include the handling of money.
According to an article written on Investopedia.com, an American website that specializes in finance education and investing, financial literacy is defined as “the education and understanding of various financial areas including topics related to managing personal finance, money and investing.”
In a report published by Champlain College on national high school financial literacy, it is shown that “young people often do not understand debit and credit cards, mortgages, banking, investment and insurance products and services, payday lending, rent-to-own products, credit reports, credit scores, etc.”
That excruciating list of things that young people do not understand is absolutely terrible, as the understanding or lack thereof has a significant impact on their daily lives.
According to a survey featured in a Bank of America report on Young Americans and Money, conducted in 2016, only 31% of young Americans between the ages 18 to 26 agreed that their high school education did well with teaching them about good financial habits.
Although that survey was conducted three years ago, the results are terribly low and that has to improve.
Within the following year, a survey known as the 2017 T. Rowe Price Survey showed that “69% of parents have some reluctance about discussing financial matters with their kids.”
Whole schools are woefully behind in teaching financial literacy, quite a lot of parents are not fully equipped to discuss vital information about finances with their children.
While parents should teach their children about finances, they might feel uncomfortable discussing money or just simply lack the knowledge needed to give their children accurate information. That is where the financial literacy in the classrooms can step in and help out.
High school curricula across the nation should be adjusted to incorporate financial literacy in order for students to learn all the vital financial information that they will need to navigate lifer after high school. Without the reinforcement of financial literacy in classrooms, students after high school will most likely lack the knowledge that they will need when it comes to money.
When given the opportunity to help improve the education system, consider recommending the implication of financial literacy. Not only will it help students with understanding the handling of money, it will also help them in the future.