Financial Literacy to Financial Success by Isabella

Financial Literacy to Financial Success by Isabella - June 2025 Scholarship Essay

An elective or extracurricular activity that I believe should be a required class is financial literacy. Understanding money management is essential for everyone, yet many students graduate without basic knowledge about budgeting, saving, investing, and credit. Making financial literacy a required class would equip students with practical skills they need to navigate adult life confidently and responsibly.

First, financial literacy teaches critical life skills that are not typically covered in traditional subjects like math or social studies. Students learn how to create a budget, track their expenses, and distinguish between needs and wants. This knowledge helps prevent common financial mistakes such as overspending or accumulating debt. For example, understanding how credit cards work—including interest rates and fees—can help students avoid falling into debt traps that can affect their financial future for years.

Second, financial literacy promotes long-term planning and goal setting. Students learn about saving for emergencies, retirement, and major purchases like a car or a home. This encourages a mindset of delayed gratification, which is essential for financial success. When students understand the power of compound interest and investing early, they are more likely to build wealth over time. This is especially important in today’s economy, where social security and pensions are less reliable, and personal financial responsibility is crucial.

Third, incorporating financial literacy into the school curriculum helps reduce economic inequality. Students from all backgrounds would have equal access to financial education, leveling the playing field. Often, financial knowledge is passed down through family, but not everyone has that privilege. By making it a required class, schools ensure that every student, regardless of their background, gains the tools to make informed financial decisions.

Moreover, financial literacy supports mental health and well-being. Money stress is a common source of anxiety for adults, and learning how to manage finances early can reduce this stress. When students feel confident in their financial knowledge, they are more likely to make sound decisions and avoid financial crises that can lead to emotional strain.

Finally, financial literacy aligns with other subjects and real-world applications. It integrates math skills like percentages and decimals, critical thinking for comparing financial products, and communication skills for discussing money matters. It also connects with social studies by exploring economic systems and consumer rights. This interdisciplinary approach makes learning more engaging and relevant.

In conclusion, making financial literacy a required class would provide students with essential life skills, promote long-term financial health, reduce economic inequality, and support mental well-being. It prepares students for the realities of adulthood and empowers them to make smart financial choices. For these reasons, financial literacy should be a fundamental part of education for all students.