Importance of Basic Financial Education at High Schools

 

·         High school education is not only educating them the book knowledge or let them learn about the academic curriculum. High school education the foundation for the next stepping for students, they should be taught along with finance education, teach them about the basics, so that they will have an idea of what it is, when it comes to understanding or take up a course in future, it will make them easier and not only it is like a lesson of understanding, learning, finance basics will help everyone in the day-to-day life we deal with. 

 

·         Making it as subject or inserting the concepts will be ease. Coming to finance education, it not only about dealing with money or how to make money or possible ways, it’s all about our expenditure, investment, returns, profit/losses, tackle with savings, spending on activities. 

 

·         A simple concepts or terms at the beginning make students to understand the situational circumstances and move on with it. Saving money should be a disciplined approach. Learning it in early childhood gives us best way to make expenditure or income.

 

·         This will be difficult at the beginning. But it will give us financial freedom when we desperately need it. Financial literacy is understanding the source of money and how that money can be planned and utilized for the present and future requirements. It gives understanding of various financial areas like personal finance management, money expenditure and investment.

 

·         Knowledge of appropriate decision making about personal finances such as insurance, real estate, education expenditure etc.,

 

·         It gives an opportunity to upgrade level of knowledge and information. Help in understand the basics and technicalities of financial literacy, financial planning and investments.

 

·         Effectively managing finances, also in calculating Compound interest, mutual funds, stocks, credit scores concepts. Make oneself think about or questioning themselves such as “Are we living a debt-free life”, “Are we investing well, and saving the tax”.

·         Enough savings for the emergency. Finance education is required to stop living from paycheck to paycheck, investing, become financially secure. To save money on our vacations: inspite of all of our best intentions.

 

·         To raise cash quickly: when financial emergencies occur in life, one must find themselves to go for easiest ways to raise cash. Money can often be raised in ways that have minimal long-term consequences.

 

·         Priorities reflected in spending: when most of money goes towards providing what’s important to you, you tend to live a more fulfilled life and feel more satisfied with the way you spend your money. It’s also easier to stick to your personal finance plan when its objectives are to get you what you really want out of life.

 

·         Protect yourself from a recession, Tax advantages for self-employed, All about credit card delinquency. It also teaches on how to stick to your budget. Teach about money with an allowance.

 

·         Investing when financial times are difficult: when times are tough and money’s tight, one of the first things you may neglect is investing. Investing is a way to build up for future.

·         Set and achieve fulfilling personal financial goals. Mandatory spending, discretionary spending, emergency fund, retirement fund.

·         To manage crisis: we encounter a lot of crises in life from economies to allocation of limited resources. Finance education helps us to manage such crisis by making sober decisions. We get to how to be independent of thought. We will get to know about different loan schemes available, how it works rather than knowing them. It’s good to have safe knowledge prior by learning finance in secondary education.