The Importance of Teaching Financial Literacy

How much of the material you’re learning during your high school experience are you certain you can apply to your everyday life? Sure, the fundamentals of our curriculum work to build upon scholarly skills that we can leverage later in the workforce, yet the majority of our courses do not directly correspond with the responsibilities of adulthood.

Financial literacy, the art of effective money management, can be a harsh reality for many young adults entering the age of independence, but it doesn’t have to be this way. It is up to Abington Friends School whether or not its graduates will excel in this crucial department of responsibility, or pay the price. 

Becoming fluent in financial literacy is a life skill that can save students from making poor financial decisions down the road. AFS, as an educational institution, owes us the opportunity to gain security in an area of practice that’s foreign to many our age. 

Teaching the importance of maintaining a good credit score, navigating loans, and unpacking the meaning behind high interest rates is crucial to avoiding debt and being taken advantage of when making big financial decisions. We can nip this problem in the bud prematurely by teaching these skills early, and exposing students to proper terminology and the economic basics.

Investing, and an introduction to the stock market, is important now more than ever with the surge of inflation. Inflation, the increase in the rate of the cost of goods resulting from a decrease in the value of the dollar, can be combated with feasible investments. 

Instilling in students the value of investing will inspire them to compound their money overtime at a rate that doubles inflation and in turn beats the system. In doing so, you make your money work for you. 

Building a savings plan deserves a space in the classroom just as much as a more traditional, core principle such as writing an essay. Tracking spending habits and establishing an emergency fund offers students the chance at an early retirement and financial stability. 

It is never too early to start having budgetary discussions in school, only too late. We no longer have the comfort of depending on social security taking into account the cost of living today, and no one wants to work forever.    

Start investing in students by teaching them financial literacy.