Should Financial Literacy Be Taught in Schools?
By: Lilla Tardia
Introduction
Most students graduate from high school knowing the history of the United States, how to solve complex algebra problems, analyze literature, and more. However, they have never learned how to manage money from creating a budget to understanding credit scores to paying taxes. As teenagers become adults, they are expected to make important financial decisions that can affect the rest of their lives. According to the Council for Economic Education (2024) and The National Endowment for Financial Education, increased confidence and superior decisions in life under a monetary perspective are a direct result of financial education. Financial literacy has a significant impact on how prepared students feel as they enter adulthood. Therefore, schools should require financial literacy classes as they help students make informed financial decisions and prepare for long- term success.
Knowledgeable Judgement
A large benefit of required financial literacy classes would be the fact that they teach students how to take care of their money. This allows them to avoid debt and costly mistakes. The Consumer Financial Protection Bureau defines financial well-being as having control over day-to-dayday- to day transactions and being able to handle unexpected challenges related to money. that include money. In addition, in 2024 the Federal Reserve Board reported that most Americans would have difficulty paying for an unexpected expense, demonstrating how current, common, and unmediated the problem of financial insecurity has become is. Learning about credit cards, loans, interest rates, and debt management while still young can help people understand the long term consequences of monetary instability. Instead of learning these lessons through expensive mistakes, students can develop healthy habits in the classroom. Without guidance,students may develop poor financial habits that they carry into their adult lives, they will bring irresponsibility and carelessness into their adult lives, potentially forcing them to deal with the consequences for years after. As a result, financial education can reduce financial stress by allowing young adults to make informed and aware decisions.
Economic Well-Being
Financial literacy classes should be required because they also prepare students for long-term financial success and provide equal access to important life skills. The Organization for Economic Co-Operation and Development describes financial literacy as an essential life skill, while the World Bank also explains that financial capability helps individuals succeed further in life. Some argue that schools should not require these classes as students are already buried under busy schedules or that these skills should be taught by parents or guardians at home. However, not every child has a family member with the knowledge or resources to teach budgeting, investing, and credit. Personal finance education requirements vary across states, meaning that many graduate without even being introduced to these necessary skills and others are already deep into the education. Since most schools already provide equal educational opportunities, requiring financial literacy classes would ensure that every student has the tools needed to become a responsible and stable adult.
Conclusion
In conclusion, schools should require financial literacy classes due to the fact that they provide students with the knowledge and skills necessary to become successful in the real world. Better decisions, responsibly managing money responsibly, and preparation for future financial challenges are direct results of these classes. Learning how to understand monetary education should be a basic knowledge as it is a life altering skill.