When you hear economic experts speak like Jeffrey Small Arbor financial education is one of the biggest areas which we lack in the schooling system. Our kids in fact are able to learn about business and how finance within that world works, they are also able to learn about math and how numbers work, yet they are never taught about applying this in the real world.
There are many areas of education which can be taken care of by the parents of course, but experts suggest that finances shouldn’t be one of them, and that instead our teens should be taught about personal finance. Here is exactly why so many are calling for this to be added to the syllabus.
Teaching About Debt
There is absolutely no doubt that there is a huge number of people who have issues with debt in this country, mainly debt which they cannot afford and which they cannot control. What we cannot do however is have youngsters growing up and just assuming that debt is bad, simply because they have parents who may complain about it. The reality when it comes to debt however is that it is a positive thing and it is necessary for a healthy economy. The reality when it comes to debt of course is that this should be managed, and be a debt which is affordable and easy to control.
Giving Them Confidence
A lot of adults speak about the fear which having money gives them, be it earning or caring for their money. The whole point of an education is that we are teaching these young men and women to survive in the real world and now of the best ways in which they can do this is to have a positive attitude when it comes to money and to have the skills and the confidence to look after it. An early education in money handling will ensure that they have total control when the time comes to start earning.
The greatest danger to our young adults is that they start spending heavy when they start to make a little money. This is all well and good for a short while of course, and it is after all a part of learning. Our young adults however should have a solid understanding of what exactly money means, how quickly it can disappear and what the importance is of paying for the important things first. If we don’t do this then we risk yet another generation of children who think that money will last forever or that they can take on debt to cover their expenses, which of course is far from a long term plan. We have to equip our kids well and we must ensure that they are on the front foot when it comes to paying what is important, saving and then spending money which they have left over.
This is very much a critical part of education.