The Importance of Financial Literacy by Camryn

The Importance of Financial Literacy by Camryn - January 2023 Scholarship Essay

Over half of Americans are living paycheck to paycheck. Credit card and student loan debts are higher than ever and still rising. Financial literacy is a life-changing skill that benefits everyone who encounters money. Many schools offer financial literacy as an elective however, it should be a nationally required course. Schools are obligated to educate students and prepare them for the future. Teaching students how to be financially literate is essential to equip students with the proper skill set for adult life.
By teaching financial literacy students can avoid making poor financial decisions in the future and become self-sufficient. Implementing this required course would help thousands of students achieve financial stability; not only for themselves but also for their families. Many students come from families where there is financial illiteracy. Education on crucial life skills such as learning to create a budget, track spending, stay debt free, and plan early for retirement will provide them with competency and the ability to spread their knowledge.
States who have implemented financial literacy course requirements have seen credit scores rise and crime rates drop tremendously. Taking the first step to educate young students about the ins and outs of money management has undeniably positive effects on everyone. Students who are adept in financial literacy have been shown to accumulate less student loan and credit card debt, and have an emergency savings account. They also learn the importance of investing; allowing them to start young and capitalize on time being in their favor.
These skills will allow these students to experience financial stability, freedom, and knowledge of how to handle their finances. Studies have shown financial instability influences mental health, creating issues such as anxiety and depression. However, once financial literacy is established students will be properly equipped and ready to handle the financial ups and downs of life.