Finance is a practical skill that most teenagers never quite learn in high school. But while finance has not been a substantial focus in high schools of the past, there are compelling reasons to consider integrating money matters more deeply into the curriculum.
Today we will explore those reasons as we dive into a reflection on why high school students need to learn finance.
Student Loans are No Joke:
Most high school students have no idea just how imminently student loans will be affecting their lives. Since most high school students do not have an extra $30,000 a year lying around, the majority of them will need to take out loans that they may one day struggle to pay back.
No matter what, the student loan situation will probably be a burden for most future college graduates. However, with even a small understanding of finance, students can make decisions that will mitigate the burden of debt.
For example, it is not advisable to take on debt that exceeds the student’s projected annual income. This means that if a student expects an income of $40,000 when they graduate, they should not borrow more than $10,000 in a year.
Whether or not they can actually afford to keep their debt that low will depend on the situation of the student.
However, with the right information, they at least have the opportunity to make decisions that might benefit them in the future.
Better Understand the Domestic and Global Economy:
High school graduates should leave school with all of the skills necessary to understand the global and domestic economy. Why? Economic updates are more than just abstract stats and figures—they are key pieces of data that could have a real impact on individual lives.
Understanding the economy can give them important insights into trends that might impact their local economy. It can also serve to inform them of broader issues, such as global income inequality—an issue that will almost definitely impact their lives in some capacity.
Students Need to Know How to Get Credit Wisely:
Credit cards are great when they are used responsibly. However, when they are not used responsibly, they can result in financial ruin for the card holder.
Bad credit is an issue that can follow a student for many years. However, it can be avoided with a basic understanding of the financial aspects of a credit card. Knowing what type of credit option is right for them can go a long way towards keeping their bills paid, and their future credit score high.
Over-spending is a common impulse for new credit card holders, especially when they are of a young age. A keen understanding of the risks of spending more money than you can afford to pay back can go along way towards fostering a more financially responsible future generation.
They May Find a Career in Finance:
Last but not least, they may find a career in finance! Jobs rooted in the financial sector of the job market often have higher than average salaries. However, a relevant educational background is required for the vast majority of them.
If students can get a taste of finance in high school, they may be much more likely to pursue a degree in finance as well.
Here are just a few finance oriented career opportunities, as well as their median salaries.
- Financial Analyst: Median Salary $81,000
- Financial Manager: Median Salary $121,000
- Stockbroker: Median Salary: $67,000
As you can see, all of the options listed above come with very comfortable incomes that may very well be appealing to college students weighing their future career options.
The impact that finance has on everyone living in the United States is not optional. It is for that very reason that developing at least a basic understanding of finance should not be optional either.
Most high school students have no idea how close they are to entering into a world of big bills and debt. Even students do not have student loans in their future are still graduating into a world that runs on money.
Why not give those students every resource that they can get to help them thrive in that world?