Should Financial Literacy Be Taught In Schools Essay Sample

Every day high school students wake up and attend school in hopes that what they learn there will adequately prepare them for their futures. Unfortunately, however, many young people graduate high school and are thrust into the real world without sufficient knowledge of how to manage their finances. The amount of financial decisions that an individual must make continues to rise, yet far too few young people are familiar with terms like debit and credit cards, mortgages, banking, investing, insurance, rent-to-own items, credit reports, credit scores, etc. Financial literacy courses should be required in high schools in order to prepare young people for the future and avoid unnecessary financial pains. 

Finances play a massive role in major life events. From the moment young adults graduate, they are faced with all sorts of complex financial situations. “Career decisions, buying your first house, getting married, having children—finances all play a massive role in each of these life events.”, Forbes writes. Not only is money management required for big things, but it’s also needed for mundane things in everyday life such as going out to grab something to eat or going out with friends. Implementing personal finance courses in schools for adolescents provides them with the likelihood of being prepared to face these prevalent issues as they grow older. While financial knowledge helps people navigate through the big and small decisions in life, it also helps young people to avoid financial struggles.
A lack of financial knowledge has painful results. CNBC writes that “[A lack of financial education] has led to many people racking up credit card and student loan debt, living paycheck to paycheck, and not saving enough for retirement. It has resulted in people not being able to buy a home or being able to put enough food on the table.” The evident consequences of inadequate financial knowledge aren't merely a daily worry. Long-term results like divorce, poor health, depression, and bankruptcy are all possible outcomes of financial distress. According to Forbes, “ Millennials are starting their careers with a combined $1.52 trillion in debt.” Teaching high school students about debt, multiple ways to pay for college, and the significance of not borrowing more than they can afford could help them avoid these alarming proportions. After all, high school is a crucial time to learn these important skills.

High school is often the only place/time to learn how to properly steward one’s finances. Kids are not learning about this topic at home. Champlain College states, “Only 23% of kids surveyed indicated that they talk to their parents frequently about money, and 35% stated that their parents are uncomfortable talking to them about money.” If children are not learning at home, shouldn’t they learn this important lesson in their classrooms? Furthermore, if high school children wanted to learn about finances after graduation, they'd presumably already be grappling with money troubles due to the enormous financial burden that attending college entails. The New York Times writes that financial literacy classes teach high school pupils “how to budget and save” and that “it’s crucial to adulthood.”

In sum, money's significance in today's society is escalating. Money plays a major role in everyone's life, whether it be for small things like going out to eat or big things like buying a home. However, the understanding of how to manage one's finances is not growing in unison. The necessity of stewarding one's money, as well as how to do so, should be taught to younger generations in order to avoid devastating consequences such as debt, bankruptcy, and poverty. High school students should have adequate financial preparation for adulthood because everyone can agree--the real world is not easy. The futures of the younger generations are at stake.