Introduction
Mandatory financial education in school translates into enhanced financial skills and knowledge, improved credit management skills, and decision-making ability.
Today, we will discuss the following points concerning financial education in school. First, we will review what constitutes a financial class and what topics are covered. Next, we will talk about how attending a financial class can benefit students and their lives in the future. Then, we will consider the impact of financial education on decision-making ability,
Body
What is a financial class, and what topic can be covered in it? School-based financial education programs are classes aimed at developing financial literacy in students and preparing them to make informed financial decisions in the future. Traditionally, the topics include budgeting, products and services in the financial market, and behaviors of responsible financial consumers (Frisancho 14). Now, it is critical to consider the benefits of financial education for students. Research suggests that persons attending financial literacy classes in school manage better financially compared to those who do not. According to Urban et al., classes covering financial behavior positively impact credit behavior (20). Furthermore, financial education in high school helps establish financial independence at a crucial stage of life (Urban et al. 21). Considering the benefits of financial education, another point should be examined: how it impacts the ability to make financial and non-financial choices. Financial literacy programs show the importance of considering all pros and cons when making any decision. Kaiser and Menkhoff suggest that individuals with financial education make more consistent and patient intertemporal choices (19). This outcome can positively affect numerous areas of students’ lives.
Conclusion
In summary, financial education should be made mandatory in high schools. Finance classes develop financial and credit management skills and general decision-making abilities. Today, we discussed what topics are covered by financial literacy programs. Next, we talked about the benefits of attending a financial class. Finally, we considered the impact of financial education on decision-making ability. Overall, investment in compulsory finance classes in school is an investment in one’s future.
Works Cited
Frisancho, VerĂłnica. The Impact of Financial Education for Youth. Inter-American Development Bank, 2019.
Kaiser, Tim, and Lukas Menkhoff. “Financial Education in Schools: A Meta-Analysis of Experimental Studies.” SSRN Electronic Journal, 2018, pp. 1-39.
Urban, Carly, et al. “The effects of high school personal financial education policies on financial behavior.” Economics of Education Review, vol. 78, 2020, pp. 1-35.