Getting an Early Start on Financial Literacy
The thing that all schools are missing is a financial literacy program. The sheer amount of people that do not understand money is frightening, which may explain why more people than ever in history are in debt.
Getting students to engage in the learning process and making school relevant is difficult. If students are shown how to use money, and are taught how to understand it, they may take these skills into their future and achieve their goals. Schools that teach students how to use money will help teach them about having a family economy and break the cycle of poverty.
With 97% of students graduating from college, and a whopping 65% going to college, it is imperative that students are taught how to handle their money and avoid debt. We now have two generations of people that have college debt that they are taking a lifetime to pay off.
Money is a very global thing. It touches every part of a student's life. If the student is taught about money and understands how it works, then it may improve every part of that student's life and future. There are plenty of students that live under the poverty line, and a financial understanding course in their school may help teach them to stop spending and help them understand how they may invest in a better future.
Money is a global issue that is going to affect every element of a student's life. They will learn how to make decisions based on how those decisions will affect their future. They will learn to calm their spending and understand that their money is meant to be kept and not spent. Financial literacy is simply a body of knowledge, and investing is one of the subjects. We can teach students this sort of thing the same way we can teach biology when teaching science.
There are four components to a financial literacy curriculum. There is personal finance, economics, monetary policy and then the mixing of all three as the fourth component where students may see how each component interacts. Ideally, the curriculum needs to be deep and encompassing. It needs to link to the student's life goals.
Planning is a big issue. Students need to understand that unplanned spending is the same as giving money away. Maybe if it were explained differently to students (and people), then they would be more eager to take note and listen. What if students were given real-life examples, such as making the choice between planned spending and getting paid. If students spend without planning, then it is no different from working and not getting paid.