Argument for the Inclusion of Financial Literacy in Public Schools

The Case for Financial Literacy in High Schools

In the United States, a lack of financial knowledge has been an ongoing problem for many years. Until recently, school districts throughout the country have not offered classes in financial literacy. This has begun to change, as twenty-one states now require a personal finance or literacy class to graduate from high school. Fifteen of those states, however, merely integrate financial literacy into other classes without requiring a dedicated course (NGPF, 2022). Through the widespread implementation of comprehensive financial literacy programs in schools, critical skills in money management, tax preparation, and retirement planning could be taught to reduce personal financial problems and improve the quality of life for all Americans.

Money Management

Money management education can prepare students for the practical realities of adult life. Learning to balance a checking account can reduce fees for overdrafts and allow people to know how much money they actually have. Students would also learn to track where their money is going, helping them to build and adhere to a budget. Furthermore, with credit card debt at an all-time high, knowledge of how and when to use a credit card would be invaluable. Students who study money management will be better prepared to avoid common pitfalls and make sound financial decisions.

Tax Preparation

In addition to money management, knowing how to prepare taxes and understanding the role of taxes can be helpful throughout life. General knowledge of why the government needs to collect taxes and how the process affects a person's finances is a necessary component of civic and financial understanding. Consequently, being able to prepare your own taxes could save the money that is paid to professional tax preparers. A basic understanding of what taxes are and how they affect us can be beneficial for the rest of our lives.

Retirement Planning

Finally, an understanding of retirement planning is essential for long-term financial stability. Knowing when to start saving and understanding the consequences of waiting too long to save for retirement is something everyone should know. Having a plan for retirement and learning how to begin saving would be highly beneficial to a student as they prepare for a career. Learning how to determine how much money would be needed to live a desired lifestyle after retirement is a crucial skill that empowers individuals to take control of their future.

Conclusion

While relying on family or friends to teach financial literacy is not a terrible thing, having classes taught in school enhances that knowledge and ensures a consistent, high-quality education. Teachers of financial literacy should be truly knowledgeable about money management and be able to demonstrate that knowledge in their own lives. Money management, tax preparation, and retirement planning are all skills that need to be learned before being confronted with these issues and having to figure things out without any training. Financial literacy classes could help with improving credit scores, reducing personal bankruptcies, and ultimately leading to a higher quality of life for many Americans.

Reference

Updated: How many states require HS personal finance course? - Blog. (2022). NGPF. https://www.ngpf.org/blog/advocacy/how-many-states-require-students-to-take-a-personal-finance-course-before-graduating-from-high-school-is-it-6-or-is-it-21/