Leveling the Playing Field Through Financial Literacy
Money management can be a daunting and stressful topic. It can be difficult to discuss households and challenging to squeeze into school curriculum. These circumstances deter individuals from prioritizing their financial well-being from a young age, and we must take a stance to rectify this issue.
In my second year of college, I started working for an organization under Take Charge America, called Take Charge Cats. The last two years I have grown significantly in my role as a personal finance educator. My role consists of going to classrooms and institutions through Tucson, Arizona, to teach workshops on specific topics under personal finance. Workshops are free of cost, with topics ranging from making a budget, to managing credit, to preventing identity theft. My experience working as a Take Charge Cat has significantly transformed my view on education and personal finance awareness.
Only five states require any sort of financial literacy to be incorporated in schools. Subsequently, a large portion of schools in the United Stated do not teach financial literacy to their students, and those who do often lack the motivation to accommodate a thorough curriculum. The reality is that, in many cases, a source of income is not enough to drive financial stability. Saving, investing, and creating a personalized budget are all imperative factors that can ultimately determine financial success for a large percentage of Americans. We as a society needs to work harder to cultivate a generation of students who are educated on topics regarding personal finance before they enter adulthood.
Personal finance literacy is absolutely pivotal to the well-being and success of students, yet there are many qualms people have about investing in making it more accessible. Some argue that because personal finance is not a relevant issue in the lives of young students, they are not inclined to engage or take personal finance lessons seriously.
However, a study conducted by Capital One shows that 45% of graduating high school seniors feel that they are not ready for financial responsibility. This demonstrates that individuals who are likely about to take out hundreds of thousands of dollars in loans, use credit cards, commit to car payments, are readily admitting they feel unprepared. This shows that students actively believe that they need financial guidance in their lives and would be receptive if it was provided. As a result, including financial education as a seed for a lifetime of financial well-being would be incredibly beneficial.
Another common argument is that the responsibility of personal finance education should fall upon parents or guardians. Unfortunately, money can be a very uncomfortable topic for adults to talk about with their children and is often left not talked about at all. A study shows that parents are more prepared to speak to their children about drugs than they do about personal finance.
It is also important to note that not all adults have good spending and budgeting habits. A study shows that 63% of Americans are unprepared for a $500 emergency expense. To prevent proliferation of negligent habits, a lateral financial education should be integrated into school curriculum.
With the shortcomings of the public school system it can be difficult to predict when funding for this curriculum will be available. In the meantime, there are many things we can do to contribute to create a financially savvy community. The first step is to properly educate ourselves on the details and proper money managing habits. The next step is to continually educate others on these habits. Through just bringing up financial matters more frequently, we can reduce the discomfort and taboo surrounding the topic.
My increasing interest in outreach and education as well as working for the Take Charge Cats has allowed me to understand knowledge on topics pertaining to personal finance has the potential to revolutionize the financial well-being of all individuals. My hope is that together we can foster a community that promotes awareness of these topics to students at an early age.
