Money Talk by Agurah

Money Talk by Agurah - August 2015 Scholarship Essay

Many students often stress about how they are going to manage when they graduate from high school and leave their parent’s household. They stress about how they are going to manage financially, because they are clueless about economics. Numerous students have survived to tell horror stories about the struggles that come with being broke. To prevent these stories from being reenacted, students should be required to take a financial literacy class before graduating from high school. This is necessary, because having financial knowledge aids individuals in making smarter monetary decisions, some parents are not capable of teaching their child finance, and the course would be more accessible in school.

Teens and young adults need to be financially informed, because this age group is learning how to fend for themselves in preparation for when they move away from home. With guardians not being in close proximity, there may not be anyone around to guide youths and help prevent them from foolishly becoming bankrupt. Once someone falls into the pit of pennilessness, it is challenging to climb out without a pecuniary ladder. According to Professor Gutter, “‘college students who came from states where there was a course required were more likely to budget, were more likely to be saving, and were less likely to have maxed out their credit cards in the last year and were more likely to be paying off their credit cards fully’” (Bernard 2). Of course financial literacy will not unquestionably guarantee financial success, but “understanding concepts like the time value of money, risk and reward, and…the importance of savings” (Bernard 1) will decrease the risk of vulnerably falling into a black hole of economic hardship. At this stage of life, most people start to construct their financial reputation, and a weak foundation can lead to fissures later on in life. It is not surprising that “statistics suggest [that] teens and young adults are assuming too much credit card debt and are not knowledgeable about finances,” (Davis 2) because only “13 states require students to take a personal finance course or include the subject in an economics course before they graduate from high school” (Bernard 1). Those who are financially poor cannot contribute to the economy. This hampers the economy, which then deleteriously affects other citizens. They may then suffer unfair financial blows, and have to pick up the slack.

Individuals obviously need financial knowledge to survive and compete effectively amongst society. Parents are supposed to nurture their young and teach them how to care for themselves when they venture off into the real world. The sad reality is that not all parents are competent and not all parents will, or can teach their children how to be financially responsible. As a matter of fact, there are parents out there who are not financially responsible themselves. The first Advisory Council is considering mandating financial education in all schools, but “‘it will take a parent movement’” (Bernard 3) to incite change. This is because a parent fighting for their child’s education will have more motivation and faith in their cause than the government, who is fighting for a population they are not personally connected to. Unless this cycle of financial ignorance is broken, it will continue to repeat.

School is the most accessible place for students to gain financial knowledge. Lauren Willis advocates “one-on-one counseling with unbiased advisers” (Burns 2). Unlike a finance teacher in a school, these people may be hard to find. Due to the power of money, it is safe to assume that people who are financially rich will be more likely to afford a personal financial advisor. Why do only a select amount of people get to obtain financial awareness? Are some people more worthy and deserving than others? No youth deserves to get left behind based on factors they cannot control, such as their family’s financial background. Even if finance is not taught as its own separate class, it can be incorporated into another class. This has easily been done by “Mathew Frost, who teaches 11th and 12th graders American history and economics at Sunset High School in Dallas” (Bernard 1). Frost incorporates financial lessons into each class day via realistic activities. As a result, his students learn the importance of maintaining good budgeting. Of course there are many sources out there that students could use to become financially inform, but think realistically. A lot of students do not know these sources exist and would not have the urge to find them on their own accord. School is an effective way to deliver these materials to a large number of students.

Due to “so many personal finance decisions turning into disasters” (Burns 1) it is evident that financial ignorance is rampant in society. This ignorance is passed on to society’s children. It is ridiculous that “of the 5,775 high school seniors in 37 states who participated in a [JumpStart Coalition for Personal Financial Literacy] study… students on average scored 52.4 percent on 30 questions” (Davis 2). According to the standard grading scale, a 52.4 percent is a failing grade. This failing grade will taint the students’ future financial experiences if this issue is not addressed. Teaching students about finance in school, is a step towards solving this problem.