In school students learn the basics of math, English, history, and science. There are some others skills that are important for students to know before they leave school. There are now courses that teach financial literacy and money management. Some wonder why is money management education important for students? There are several reasons why students should attend a money management course.
Internet shopping is easy and is becoming very popular. All it takes is a credit card and a couple clicks of a button to spend money. Shopping and spending money is very easy. A student has to learn that it is important to save money and delay making unnecessary purchases. The earlier they learn this the better off they will be.
Young people today have a lot more debt than previous generations. Student loans are costly and it is easy to build up thousands of dollars a semester. There are also more credit cards being used today than in the past. Before a student knows what happens they can deep into debt. Financial literacy programs will teach a student how to accumulate less debt, pay off debt, and stay on top of their finances.
People are Going Bankrupt:
While every now and then life situations happen where a person may lose control of their finances, bankruptcy is becoming more common and people are declaring it at a younger age. According to research one in five people ages 18 to 24 declared bankruptcy. Many of these people had more debt than they were able to manage. Financial education could help a person stay out of debt and teach them tips on how to pay it off.
The younger generations are delaying the time they start savings for retirement. One reason is because they delay the start of their careers. Younger workers are also more likely to change jobs and they may not roll over the money for retirement that they have begun to build up. It is not uncommon for a person not to find a stable job until they are in their 30s. If a student learns the importance of saving from the time they are in school they will put money away at a younger age. It is more likely they will avoid taking time out of the workforce as well.
Not Everything is Fair:
While some people may be from a family where it is important to save and talk about money, not all young people are some lucky. Some people come from families that are struggling to get by. Other families do not talk about financial matters. If a child is not learning financial planning and education at home they need to learn it from somewhere. Schools are designed to help young people build up the skill they need in life including money management.
These are some of the important reasons as to why students should be taught about financial management and planning. These tips can help a student become successful and help them become financially secure.