Why it Would Help
If the educational system provided financial literacy classes, it could change the way that people operate later in life. People would be know how to save money, how to invest, and how to avoid debt. If more people were able to hold onto their money, society would be much wealthier overall, which would lead to fewer problems.
Financial literacy courses that provide background on simple financial matters would make a positive difference in the lives of students. Here are some important areas of focus:
Provide a basic understanding of investing and how it works. They don't necessarily have to know how to pick stocks or mutual funds yet, but having a basic overview would be helpful. For example, show them the power of compound interest, and how regular investing can help them take advantage of it.
- Credit Cards
Educate young people on how to use credit cards responsibly. For example, they should understand how to find the lowest interest credit cards, so that they don't have to pay that much for interest charges. They should also understand the average credit card debt of each household. This way, they can avoid getting into debt problems when they get a little older.
- Financial games
Traditional games like Monopoly, Pay Day and video games like RollerCoaster Tycoon allow students to role play possible real-life financial scenarios. Embeded in this can be lively discussions and lessons on what decisions make the most sense.
When we help young people tap into their passions and provide them with entrepreneurship opportunities, many financial literacy lessons fall into place. For example they can consider how much to charge for services, where and how to invest money, profit/loss, etc.
Providing students with a financial literacy education prepares young people to be more secure and when they get older. While money isn't everything, having a grasp of basic financial matters can make a world of difference in the lives of students.