When it comes to raising our children, we all want to provide them with the tools they need to succeed in life. We teach them important life skills like reading, writing, and arithmetic, but what about personal finance? Many parents overlook this crucial area of education, assuming their children will learn about money management as they grow up.
However, the truth is that personal finance is a complex subject that requires deliberate and consistent teaching to instill good financial habits.
Teaching children about personal finance is essential for their future success and well-being. And now students at Winooski High School in Vermont are learning about money management in their personal finance class.
The class covers topics such as budgeting, banking, and building credit, and students are even taught how to figure out how many hours they need to work to afford items they want in their first apartment. While an increasing number of states are adding financial education to their high school curriculum, most schools do not require students to take a dedicated personal finance class before graduation.
Only eight states currently require a semester-long personal finance course, with 10 more states in the process of implementing the requirement. Despite this, the momentum for states to guarantee financial education for students is growing, with financial literacy legislation introduced in 30 states this year, including Vermont.
In 2018, Vermont’s State Board of Education adopted standards to teach personal finance in kindergarten through 12th grade. However, local school districts are responsible for implementing the standards, and a bill to make a personal finance class a high school graduation requirement statewide has stalled in the Vermont legislature.
Despite this, about 20% of high schools in the state, including Winooski High School, require students to take a personal finance class to graduate.
Research has shown that high school students who take personal finance classes make better financial decisions as young adults, leading to improvements in credit scores, reductions in delinquency rates, and less reliance on credit cards and payday borrowing.
Therefore, students like those at Winooski High School are advocating for everyone to take a personal finance class to better prepare them for financial success in the future.
5 reasons why children should be taught personal finance
1. Develop healthy financial habits. By teaching children about personal finance at an early age, you can help them develop healthy financial habits that can last a lifetime. They will learn how to budget, save, invest, and manage their money responsibly, which will serve them well in adulthood.
2. Avoid financial pitfalls. Many adults struggle with financial issues, such as debt, bankruptcy, and poor credit scores. By teaching children about personal finance, they can learn to avoid these pitfalls by understanding how to manage their money wisely.
3. Build financial confidence. Understanding personal finance can be daunting for many people, but if children are taught about it early, they can develop confidence in their ability to manage money effectively. This can help them avoid financial stress and anxiety in adulthood.
4. Faster independence. Personal finance education can help children become more independent and self-sufficient. They will learn how to manage their finances on their own, without relying on others to make financial decisions for them.
5. Develop a sense of responsibility. Personal finance education can teach children about the importance of taking responsibility for their financial well-being. They will learn that their financial decisions have consequences and that they need to make informed choices to achieve their financial goals.
In conclusion, teaching children about personal finance is essential for their long-term financial success and well-being. By giving them the tools and knowledge they need to manage their money effectively, you can help them build a strong foundation for a successful financial future.
