Many young adults move away from home with little to no knowledge about finance. This creates issues when people don’t know what a third rate of interest is or aren’t sure how to create a sustainable budget. This lack of knowledge is part of the reason why consumer debt and bankruptcy have gotten so high. I think this problem could be managed if financial literacy was incorporated into high school education.
It’s not just people freshly out of high school who struggle with this, one-fifth of adults are confused and lack confidence when it comes to personal finances. This means many adults are hesitant to discuss finances with their children, which only furthers the cycle of confusion. A 2011 Charles Schwab survey revealed that of the 1,132 teens that were surveyed only 32% of the teens knew how credit card interests and costs work, in this same survey 42% of the teens said they would like if their parents spoke more about finance and money. Because of this and the ever changing nature of the finance industry, high schools should include financial literacy in the curriculum.
Many financial mistakes could be avoided if people received the correct education. Students learning about finances in high school won’t put an end to bankruptcy or end credit card debt; what it will do is help people feel more in control and comfortable when dealing with personal finances and it will help people make wiser choices when it comes to their money. This is why I think it would be beneficial if students were taught about finances while they’re still in high school.