Exploring the Benefits of Taking a Personal Finance Elective in High School
When it comes to education, we traditionally think of courses in math, science, and literature as the foundation for a well-rounded student. But what about personal finance?
Learning about how to manage one’s own finances is a crucial component of life skills that high school students must acquire before venturing out into the adult world. Personal finance courses may not be compulsory in many school districts, but they should be, as they have many benefits that can last a lifetime.
Here, we explore some of the advantages of taking a personal finance elective in high school.
A strong foundation for financial literacy
Personal finance classes in high school introduce curriculum materials that will educate students about saving, investing, budgeting, and credit. Students learn about the unexpected costs in owning a house or buying a car, and calculate the impact of compounding interest on a credit card. They learn how to read a paystub, calculate their net income and calculate income tax.
By taking a personal finance course as a teenager, students set themselves up for a strong foundation of financial literacy. They carry this knowledge with them, building upon it as they progress in life.
A better understanding of how to manage money
Many students may believe that finance is only for the wealthy or the financially savvy. However, personal finance courses teach students that people of all income levels need to manage their money effectively. By taking such courses, students understand how to set SMART goals, create a personal budget, and manage their finances successfully.
This better understanding of how to manage money equips students with a crucial skill they will use throughout their lives. It teaches them how to make informed decisions relating to debt, savings, investments and budgeting and to take control of their own finances.
Important for career choices
Much of our financial stability is connected to our chosen career paths. High school students may not know what career they want to pursue, but personal finance courses can help them prepare for the future.
This is especially true for students interested in entering the accounting, finance business and entrepreneurship fields, whereby their understanding of finance and investments will be crucial to their position. Personal finance courses give students the knowledge and skills necessary for their future careers.
Building up good credit
Taking a personal finance class in high school also preps students for building up good credit. Credit scores are vital to many financial matters, such as obtaining loans and purchasing homes. Students learn about credit reports, maintaining credit scores, and how to use credit wisely.
By being responsible with credit, students may enter adulthood burdened with less debt, and thus stand a better chance of achieving their long-term financial goals.
Conclusion
Personal finance electives are an essential addition to high school curriculum because it equips students with the skills to manage their own finances effectively. By taking these courses, students gain a better understanding of the essential components of finance, ranging from basic budgeting and investing to preparing them for future careers in finance-related fields. The takeaways of a personal finance course will not only last students a lifetime’s worth of better financial decisions but offer a critical life-skill that they can pass down to future generations.
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