Picture a young adult: eager to step out into the real world, armed only with ambition and dreams, yet unequipped with the tools necessary to navigate an increasingly complex financial world. Unfortunately, this is the reality for many young people who leave high school lacking financial literacy to make important and informed financial decisions. To prevent this, it is important to acknowledge the importance of financial literacy and advocate for its required integration into school curricula.
Financial literacy is the knowledge of how to make smart decisions with money. A financially literate person is aware of their habits and keeps track of money to achieve their financial goals. Additionally, they can make sound financial decisions in the face of uncertainty. Being financially literate is so crucial because it can help support various life goals, such as saving for education or retirement, using debt responsibly, and running a business.
Financial literacy can be obtained through reading books, listening to podcasts, subscribing to financial content, or talking to a financial professional. However, this information would be even more widely accessible if it was a required part of the curriculum in secondary schools. This would ensure that everyone is taught the importance of financial literacy and allowed to learn important skills.
In a 2023 report, it was highlighted that 88% of U.S. adults who participated in the survey said high school did not leave them “fully prepared” for how to handle money in the real world. These worrying statistics are further backed up by the fact that only 17% of U.S. adults said they took a personal finance class in high school. Along with this, 80% of adults agreed they would’ve had a better start with money if they’d learned more about personal finance in high school.
These staggering statistics reveal a critical gap in our education system—one that leaves young adults ill-prepared to navigate finances. However, these disappointing statistics aren’t completely shocking when people realize that among the 50 states in the U.S., a mere 25 mandate the completion of a stand-alone personal finance course as a prerequisite for high school graduation. Texas, a state known for its size, influence, and commitment to education, is absent from this list. In Texas, it is only required for a financial literacy course to be offered, but the coursework can also be integrated into other subjects.
U.S. adults who took a personal finance class are five times more likely to say they graduated high school fully prepared for handling money in the real world. Ensuring every young adult feels confident and prepared to manage their money is essential for their overall success. For this reason, financial literacy classes should be offered in all public schools to ensure that future generations are equipped to handle their finances.
Those opposing making financial literacy classes required in every high school might argue that mandating financial literacy classes in every high school would stretch already limited resources. Schools may struggle to find qualified teachers and give sufficient time and funding for additional coursework, especially in districts facing budget constraints.
However, the long-term benefits far outweigh the initial investment. By equipping students with essential financial skills, schools can help prevent future financial hardships. Additionally, investing in financial literacy programs for schools may result in a significant return on investment since more qualified and confident workers are heading into the workforce prepared to make smart financial decisions. These financial decisions include owning valuable property, saving money, avoiding excessive debt, finding better job opportunities, and even, ensuring economic stability and prosperity.
It is important to promote financial literacy in schools and acknowledge how it empowers students for financial independence and success. Thus, financial education should be prioritized as an essential component of the school curriculum to ensure future generations are equipped with the skills and knowledge they need to succeed.
