Lack of Financial Literacy in Students by Brenden

Lack of Financial Literacy in Students by Brenden - January 2023 Scholarship Essay

Many current and past generations struggle with financial terms due to the lack of financial literacy taught in schools. Financial literacy classes should be mandatory in high school or college to further benefit our society. This would help students properly manage debt and avoid other financial pitfalls. Lack of financial knowledge also fosters debt, gambling addictions, recessions due to high savings, and loss of assets. Americans' inadequate family and retirement savings, as well as their high levels of credit card and student loan debt, are the results of a lack of financial education.
The capacity to comprehend and efficiently manage one's financial resources is known as financial literacy. It is a vital ability that is necessary for people to be able to make wise financial decisions and attain their financial goals. Despite its significance, formal education needs to pay more attention to providing financial literacy the attention it requires. This is a serious worry because people may find it difficult to navigate the complexities of personal finance and may be more susceptible to financial dangers without even a basic comprehension of financial concepts.
There are several reasons why financial literacy instruction should be mandated in schools. First, a person's financial well-being can be significantly impacted by their level of financial literacy. People who use it can better understand how to manage their finances, put money away for the future, and choose financial services and goods with knowledge. This can assist in shielding them against financial fraud and unscrupulous loan practices and prevent them from making costly financial blunders.
Second, a person's capacity to meet their financial objectives may be significantly influenced by their level of financial literacy. Fundamental knowledge of financial concepts is necessary for beginning a business, saving for retirement, and purchasing a property. With this information, people can succeed or avoid expensive blunders.
Third, being financially literate is necessary to participate in the contemporary economy. It is more crucial than ever for people to be able to make educated decisions about their finances due to the complexity of financial goods and services. This involves knowing how to evaluate and select financial goods, use credit sensibly, set money aside, and make investments for the future.
In conclusion, financial literacy is a critical ability that people need in order to be able to manage their money wisely and achieve their financial goals. Therefore, financial literacy instruction must be made an obligatory subject in schools. By investing in financial education, we can enable people to make wise financial decisions and reach their financial objectives.