Financial Literacy by Evelyn

Financial Literacy by Evelyn - January 2023 Scholarship Essay

One elective or extracurricular activity that I believe should be a required class is financial literacy. Financial literacy is the ability to understand and manage one's finances, including budgeting, saving, investing, and managing debt. It is a critical skill that is essential for personal and professional success, yet it is often not taught in schools.

In today's society, where access to credit and consumer debt is easier than ever, financial literacy is more important than ever. Many young adults graduate from high school or college without the basic knowledge and skills to manage their money, leading to poor financial decisions and even financial ruin. According to a report by the National Financial Educators Council, only 17 states in the U.S. require high school students to take a personal finance class, and even then, the curriculum is often inadequate.

Requiring financial literacy classes would provide students with the foundational knowledge and skills they need to make informed financial decisions. Topics that could be covered include budgeting, saving, investing, credit management, and retirement planning. Financial literacy classes could also cover important issues such as consumer protection and fraud prevention, which would further protect students from the financial pitfalls that often accompany a lack of financial knowledge.

Furthermore, a financial literacy class would also benefit students as they transition into adulthood. With the knowledge and skills gained in such a class, they would be better equipped to make sound financial decisions, which would lead to more stable financial futures. Additionally, it would help them in their future careers as well.

In conclusion, financial literacy is an essential skill that is too often overlooked in formal education. By requiring financial literacy classes, schools would be providing students with the foundational knowledge and skills they need to make informed financial decisions and live financially stable lives. It is important to note that this class will benefit not only students' personal lives but also their professional lives in the future.