Why Should Kids Learn About Finance at School?

It is no longer enough for students to learn professional and interpersonal skills to be successful in life. There is one other essential skill that schools must focus on—financial skills. Why should school students learn about finance? Here are five reasons why!

Money Impacts All Aspects of Life

As children step into adulthood, they go on to make important career decisions and in the following years, even choose a life partner and then go on to have children. Earning, spending and managing money becomes a part of every aspect of their lives. Hence, acquiring financial skills is essential. According to scientists at Oxford University, young brains are better at acquiring new information and older ones are good at retaining it. Therefore, it is best to start financial education from a young age.???

Sound Financial Knowledge Reduces Risk of Debt

Even in a developed country like the United States, millennials are starting their career with a combined debt of 1.52 trillion dollars. Teaching kids about debt and the ways to plan their finances will help them avoid this situation. Explain all possible scenarios to them along with the possible solutions. This will serve as a window into the future and they will be equipped with the knowledge to handle it.

Promotes Progress in Life

Lack of financial knowledge holds people back. A series of bad financial decisions will create an unavoidable crisis that is difficult to get out of. Sure, advice from a friend could help, but it is not always reliable because financial crises are different and so are their solutions. Gaining financial knowledge will not just prepare a child for a future crisis, it will help them anticipate it and prevent it altogether. This, in turn, will give them the confidence to grow personally and financially in life.

Parents Insist on Financial Education at School

Knowing the importance of financial knowledge from their own experience, parents want their kids to receive financial education and become responsible human beings.? A survey by Credit Karma/Qualtrics reveals that 63% of parents want schools to provide financial lessons to their children. Although the debate about when financial education must be given to children still continues, the majority agrees that it should be implemented in the middle and high school levels.

Inculcates Responsible Spending

Children are usually attracted to everything they see in a shop. Financial knowledge will help them decide how much they can spend. It will get them into the habit of responsible shopping. When they learn about budget and savings, children will learn to prioritise and buy only those things that are necessary. It will teach them to save for a rainy day and spend wisely.