Personal Finance Advice Ought to Be Compulsory In School
Even though everyone
has to learn to manage personal finances once
they reach adulthood, it is amazing that the
educational system has not adjusted so that
even grade school children can be taught the
basics of personal financial planning. Realistically
speaking though, the youth from grade school
upwards should already be immersed in at least
the basics before they can be allowed to manage
personal finances for their own survival.
Children who are aged at least twelve should
already be dabbling in personal money management
so that they can get an idea of how money
is used in the real world, and how sound personal
money management can allow them to dodge any
pitfalls that come with irresponsible handling
of money. One area in personal financial planning
they should really become familiar with is
how pensions and mortgages function because
we all have to face retirement at some point,
and mortgages are a basic fact of life for
homeowners.
Because so many young adults get into credit
card debt, children entering their teenage
years must realize that credit cards are an
easy way to get into a mountain of debt, and
that credit card companies stand to gain by
charging a credit card owner huge interest
– interest that is much bigger than
that provided through a personal loan –
should the credit card owner pay late.
Simple terms like a profit margin and a mark
up can already be imbibed by children, especially
those who are eager to learn how trade and
bartering works. This should enhance their
negotiation skills so that they are well prepared
for their adult years.
Since students have a lot of subjects on their
plate already in school, one way to make teaching
Business and Personal Finance manageable for
them is for the educational system to reduce
the load for certain subjects to fit in this
new subject of interest. After all, there
are some subjects which have little practical
use so it might make sense to remove these
subjects altogether. Other subjects may be
useful but might be heavy already for the
student to absorb along with all the other
subjects – hence, the school system
might reduce the load for that subject to
make room for personal financial management
instead.
Maybe if more children were able to grasp
the basics of personal financial management,
there would be less young adults who get into
trouble due to accumulated debt that may be
very difficult to get out of. And maybe more
young adults would be able to start off their
careers and personal lives on a sound financial
footing, with less fear that they will run
into a pothole of financial problems that
would derail their progress at that age.
In turn, the economy of the country would
benefit because less adults would be mired
in debt, more adults would be productive,
and more adults would know what they are getting
into when they enter into financial transactions.
This would free up the courts that are bogged
down in resolving financial disputes involving
soaring personal debt.
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