Financial Education is a Must in High Schools

by Alexa Le

On the brink of adulthood, life is a confusing whirlwind of options, paths, and potential. For many, it is the first time that they are truly on their own, preparing for an uncertain future. It is made infinitely more difficult when you do not have enough information to make informed choices, especially in regards to decisions that can have a pivotal impact on your life. This is the situation that many teenagers are facing as they graduate high school, entering the “real world” with little to no knowledge of finances.

Whether or not a teenager decides to attend college, the financial decisions one makes during this time will follow them into their later life. If they need to take out a loan from the bank, the chances are that they will have no idea if someone is taking advantage of them financially. This lack of awareness can cause these young adults to make detrimental decisions that could hold them back from achieving their full potential.

A report on a financial literacy exam taken by high school seniors showed that they scored an average of 48% on the exam, in which a 60% would have been considered having passing knowledge of the subject. This troubling find is exacerbated by the realization that many high school seniors will soon be placed in debt to attend college, especially as student loan debts recently reached an all-time high. As of 2021, 43.2 million student borrowers owe approximately $39,352, many of which borrow that amount to obtain a bachelor’s degree alone.

It is disappointing that students are tested on being able to memorize the periodic table of elements, but the last time they learned about interest rates was plugging numbers into an equation for sixth-grade word problems in math. The purpose of an education is to prepare students to go out into the world with the necessary skills to succeed and become productive members of society, yet many schools are not doing an adequate job of doing so.

Finances are a difficult topic to understand, especially with the large amount of misleading information circulating on the Internet. Yet, many students must turn to Google to learn how to open a savings account or what a credit score means. We must have an approved curriculum with certain requirements so that the students have at least a fundamental understanding of finances. Ideally, this education should begin in middle school, but should absolutely be required in high school. Currently, many students get these financial literacy skills by joining clubs and outside organizations, yet this certainly is not enough.

Obtaining financial literacy at a young age is a necessity. Having skills such as budgeting, investing, and overall money management can prevent many from making mistakes that could have been so easily avoided with a basic education of the subject.

It is often said that the children are the future. By providing them with a proper financial education, we truly are doing the world a great service.