The importance of Financial Literacy by Anthony

The importance of Financial Literacy by Anthony - June 2025 Scholarship Essay

If I could choose one class to become a required elective in every school, it would be financial literacy. It's not just an academic subject, but rather a subject that touches on life skills. Managing a budget, building credit, student loans, debt, and so many more areas are encompassed within financial literacy. Unfortunately, it is not offered to many.

I was fortunate to be part of the Finance Academy in High School. It was a specialized program that introduced me to a wide range of financial topics that included budgeting, saving, credit, taxes, insurance, investing, and more. As the course progressed, I realized how relevant everything we learned was to everyday life. While other classes prepared me for college or career paths, the Finance Academy prepared me for life itself. It gave me confidence and clarity when thinking about my future and how to manage the financial decisions that come with it.

The knowledge gained from this program has benefited me tremendously. I learned how to track spending, plan for unexpected expenses, and make informed financial decisions. I understand what impacts my credit score, how interest works, and how to compare financial products like credit cards and loans. It’s this type of information that sticks with you and every student should have access to.

Oftentimes, young adults are expected to navigate complex financial situations without any formal guidance. Students graduate knowing advanced math including calculus but many don’t know how to file taxes, avoid overdraft fees, or build an emergency fund. As a result, many fall into avoidable debt, make uninformed decisions about student loans, or miss out on opportunities to save and invest early.

Requiring financial literacy would help prevent these struggles. It would empower students with the tools they need to succeed. It’s about more than just numbers; it’s about teaching responsibility, goal-setting, and long-term thinking. Imagine the difference it would make if every high school student graduated knowing how to create a realistic budget, evaluate a loan, or plan for college expenses. That kind of knowledge can shape someone's entire future.

While I was lucky to be in the Finance Academy, I know not all students have access to such resources. Many families aren’t in a position to teach these lessons at home; not because they don’t care, but because they themselves weren’t taught. That’s where schools can step in to ensure equity. Making financial literacy a required class guarantees that all students regardless of their background get the same opportunity to learn these vital skills.

There’s a common misconception that financial education is only for those going into business or finance. But in reality, everyone deals with money. Everyone pays bills and taxes, makes purchases, faces emergencies, and eventually has to think about long-term goals like buying a home or saving for retirement. Financial literacy isn’t about turning everyone into an investor or accountant but it’s about helping people live with less stress and more stability.

Financially literate individuals are more likely to save, invest, avoid debt, and contribute to the economy in positive ways. They’re better prepared to make informed decisions. While it’s a personal benefit, it’s also a public one.

My experience in the Finance Academy showed me how powerful this knowledge can be, and I often find myself wishing more people had access to it. I’ve shared numerous tips and tools with friends who didn’t get the same opportunity I did, and I’ve seen how grateful they are to understand something as basic as how a credit card works. That kind of information shouldn’t be reserved for the lucky few. It should be customary.

In a world where financial decisions are increasingly complex and high stakes, knowledge truly is power. That’s why I believe financial literacy should be a required class in every school; not as an elective or an extracurricular, but as a core subject. Because no matter what career path someone takes, financial decisions will follow. And with the right education, every student can be better prepared to face them with confidence.