Finanacial Literacy: How Money Works by Curtricia

Finanacial Literacy: How Money Works by Curtricia - August 2015 Scholarship Essay

If I could add any subject to the American high school curriculum it would be Financial Literacy. So many young adults graduate high school knowing how to work complicated algebraic math problems but are clueless about how to manage their own personal finances. This is extremely unacceptable because it is common for these same young adults to go off into society and ruin their credit because of lack of knowledge. Financial Literacy would teach high school students to manage their credit and personal finances successfully and completely. The Financial literacy class should present valuable, real life situations where students can learn how to deal with probable financial situations. It should include topics such as bank accounts, household and personal budgets, credit and charge accounts, interest and annual percentage rates, borrowing, investing, insurance policies, renting, home ownership, wills, trusts and personal taxes. The learning process should be tactile and hands on, as well as exams and tests to ensure the information taught is understood and retained.

In the final analysis, it is important for all young adults to be afforded an opportunity to learn about how to handle personal finance. To conclude, according to Experian (a credit reporting bureau), the average American credit score is 687, as of 2015. Credit scores range from 330 to 830. Given this information, the number 687 is not extremely bad, it is actually good, however having an excellent versus good credit score can save you thousands in interest fees, per year. If more people were educated on personal finances and how to manage, this could directly affect their credit scores and this too is another reason why Financial Literacy should be added to the American High School curriculum.