That would certainly be a good thing.
- New data reveals that 88% of adults think their state should require a personal finance course during high school.
- There are important lessons worth teaching teens before they enter adulthood.
High school students routinely take classes like algebra, trigonometry, and calculus. But how many students learn how to set up and follow up a household budget, or how to use credit cards effectively?
The reality is that personal finance classes are not a fixture in many schools’ curriculum. But that could soon change.
Parents support financial education
In a recent survey by the National Endowment for Financial Education, 88% of respondents said they feel their state should require a personal finance course prior to high school graduation. Specifically, those surveyed think students should be taught about the following:
A report by nonprofit Next Gen Personal Finance says that only 25% of current high school students have access to some type of personal finance course. But a number of states have active bills requiring personal finance education, and some are set to become law this year. That’s definitely a good thing, because teaching students to manage money could set them up to make savvy decisions once they move away from home and start living independently.
How to get your children started
It’s a positive thing to see more states being proactive about teaching personal finance. But you don’t have to wait for specific courses to hit your school district. Instead, there are steps you can take on your own to set your kids on a solid path.
For one thing, you can share your household budget with them if you’re comfortable with that idea. If not, you can create a mock budget that allows them to allocate funds for different bills as well as savings.
Next, explain how credit cards work. It’s worth telling your kids that credit cards aren’t necessarily evil, but that they can lead to overspending. Being careful with credit card usage, however, could mean enjoying perks like cash back without having to deal with the negative aspects, like interest charges and late payment fees.
It’s also very important to teach your children about having an emergency fund. You might even choose to share some stories of bills that caught you by surprise (perhaps a home repair or car repair) so …….