Why Personal Finance Should be Part of the Curriculum

Jan 23, 2019 by

In life, there are few things more important than being able to manage your personal finances as this will determine your quality of life. Despite this, personal finance is not part of the education curriculum which is problematic and can lead to financial issues for many young people which can have lasting damage. Here are a few reasons why personal finance should be taught in schools.

Help Youth Build Towards a Brighter Future

First, teaching youngsters how to manage their finances will help them to build towards a brighter financial future. Smart money management involves saving money and avoiding unnecessary spending but without this knowledge people will splurge and not know the value or importance of saving.

Avoid Debt

Following on from this, if students were taught how to be smart with their personal finances from a young age then it would help many people to avoid debt. Debt can follow you like a storm cloud and have an enormous impact on your future and stop you from making many major life purchases. Failure to educate on smart money usage and the dangers of debt could lead to an entire generation in debt which could create huge problems where this is seen as the norm.

Allure of Being Rich

In a time of social media and a constant barrage of advertising and celebrity news, the allure of being rich has never been greater which means that many young people dream of being wealthy and spending significant amounts of money. This is dangerous because this is not smart money usage and it could lead to spending which they cannot afford.

Ease of Spending

Leading on from this, it has never been easier for people to spend money due to the rise of cards and contactless payments. This can make it much easier to spend more money than you anticipated and also could have a negative impact on the mental arithmetic skills of today’s youth.

Ease of Banking

Money management has never been easier thanks to the rise of online banking. Places like Think Money have online basic bank accounts which can make it very easy to manage your money. This might include a prepaid debit card which can make it much easier for young people to control their spending and learn how to use their money sensibly.

Smart money management is a highly valuable life skill that could help someone to enjoy a high quality of life even if they do not have a particularly high salary. Sadly, this is overlooked in schools which means that many of today’s youth do not know how to manage and use their money sensibly which could create huge financial problems down the line. This could easily be changed with personal finance management being compulsory in schools.

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