Four essential financial skills that must be learned in life are: opening a bank account, building and maintaining credit, investing, and saving for retirement. The problem is that these essential…
Four essential financial skills that must be learned in life are: opening a bank account, building and maintaining credit, investing, and saving for retirement. The problem is that these essential four are rarely being taught alongside STEM and other subjects in schools as part of critical skills. But, this knowledge can pave the way for financial success and inclusion later in life. Some kids are exposed to the occasional special assembly revolving around subjects like how to save for college or why it’s not a good idea not to spend everything you earn from your first job. Yet widespread financial education isn’t happening on a large scale — which is a big problem. As pointed out in a Forbes article, only 20% of people have someone in their life they trust to share money secrets . That’s a scary statistic.
However, this isn’t to say that financial education isn’t on the radar of some of the country’s leaders and politicians. According to a March 2022 survey by the Council for Economic Education , 23 states require high school students to take a personal finance course, and 25 states require high school students to take an economics course. On the flip side of the coin, three states plus the District of Columbia do not include personal finance measures anywhere in their education standards. Future Financial Literacy
Things may be looking up, though. As noted in a 2021 piece in The New York Times, more than 20 states are considering mandating financial literacy in their schools. In addition, Congress is making progress toward driving increased financial education in the classrooms. For example, representative Matt Cartwright (D-PA) introduced H.R. 1547—Youth Financial Learning Act, which aims to award grants to integrate financial literacy education into public elementary and secondary schools.
Efforts are also being made at the state and local government levels. According to the National Conference of State Legislatures , 38 states introduced new financial literacy legislation in 2021. These are certainly steps in the right direction. And these steps are hopefully a positive start to a future of financial inclusion for everyone. Balanced Personal Budgets: A Goal Worth Pursuing
Currently, millions of young people learn how to handle their finances on the fly. Maybe they see a parent or grandparent write a check now and then. More likely, they don’t. So many people now conduct most or all of their banking online . This means it’s away from the eyes of children. So, they don’t learn the ins and outs of these everyday transactions with their ebank .
This needs to change. Far too many people, particularly those from underserved communities, have been left out of the mainstream financial system. It will only be more difficult for their children and grandchildren to build a better life if they don’t understand managing a transaction account or creating a budget.
Indeed, building a solid financial literacy foundation is critical to driving more financial inclusion. The more people who become familiar with the ins and outs of the financial system and the resources available to them, the better positioned they will be to actively improve their financial well-being.
Take access to fair and affordable credit, for instance. Many people want to buy a car, own a home, or have the capital to start a business. They can only make these big ideas happen if they have at least a modicum of understanding of what wealth is and how to steward it appropriately. Demystifying Money for the Good of Current and Future Generations
As a society, we already have many significant, bold objectives that we hope to achieve sooner rather than later. Financial literacy should rank right up there, and the best place to make it happen is in the schools.
What’s the core benefit of weaving money management into the K-12 curriculum? For one, bringing financial education to the classroom creates a life cycle of financial literacy. Kids who learn about money at an early age can build on that basic knowledge as they get older and can understand more.
Another advantage is that educators become smarter about their own financial decisions. Teaching our teachers to successfully navigate the mainstream financial system and become more financially literate themselves gets them excited about the topic and helps them better teach children.
A final benefit is the long-term effects of demystifying money on whole families […]
source Commitment to Financial Literacy Creates a Pathway to Increased Financial Inclusion
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