Students and Financial Education
Please note that this blog post represents the opinions of Alexandra Fletcher and is not representative of the official stance of the FCSS-FESC.
Ask yourself right now, what do I know about personal finances?
For many students and young people, the answer is not much. This fact is surprising given just how much of an impact personal finance has on us and on our lives. Basic knowledge and understanding of personal finance and economics are essential to the survival of students as we step into the adult world.
Personal finance refers to the financial management of an individual or a family’s resources. It is a term that covers managing your money as well as saving and investing. Furthermore, It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. Personal finance focuses on meeting the needs of an individual and catering to their short and long term goals. Whether you have enough money for your monthly bills or you want to plan for your retirement, it’s all determined by personal finance.
Understanding personal finance and being financially literate helps a person to distinguish between financial decisions that will be beneficial and ones that will be damaging to their financial future. As people become more aware of the far-reaching consequences of financial illiteracy one question becomes obvious. Why is personal finance not taught in schools? Let’s break down some of the reasons.
The Education System
A principal cause of the lack of financial education available in Canadian schools is due to the failures of the education system. The people working in the education system have the important job of identifying the most relevant and important skills students should possess, and implementing them into the curriculum. Unfortunately, the skills and subjects in the curriculum are is outdated. The subjects and topics being taught in schools today might have been relevant to students a couple of decades ago, but the world is changing and evolving, as are education priorities. It’s important that the curriculum adapts to the changes of the world and of the way students learn, to help better prepare and educate us. The curriculum lacks courses that teach students real skills that we can apply in our lives and in our futures to be successful, including but not limited to financial literacy.
Additionally, experts believe students won’t be interested in learning about finances. As a student, I can say it’s quite the opposite. We want to learn about finances because it means gaining the knowledge and understanding to take control of our lives, our success and even our freedom. The problem doesn’t lie in the material being taught, it’s all about using effective teaching methods and making the topic interesting: activities, real-life scenarios, simulations etc. When presented with the proper perspective students will tune in to teaching and turn off the cell phones. Another issue is the delegation of resources and priorities. The school system is also given the power to delegate their resources, which means they have to prioritize some subjects and aspects of school over others. The question is, why isn’t a crucial life skill like financial education, one that will affect students almost everyday of our lives not a priority of schools?
Teachers
Another obstacle is that many teachers are not always qualified or do not feel qualified to teach finance classes. Just like financial education is not a component of the school curriculum, it is not a part of the teachers’ degree curriculum.
Parents
Many believe it is the responsibility of the parents to educate their children about finances. However, many parents are often unable to educate their children about proper financial habits because they lack the knowledge themselves. A survey conducted by Ipsos, a multinational market research and consulting firm, in May of 2017, took a sample of 1,001 Canadian adults. Ipos compiled 15 questions based on common inquiries about finances and discovered most Canadians did not have the answer, 57% to be exact. In addition, a research study from the University of Agder analyzed the effect parents’ financial knowledge has on children and found a significant association between parent’s savings rates and children’s savings rates.
How can you take charge of your financial education?
First, research and learn as much as you can about the basics of personal finances, like interest rates for loans and credit cards. Second, you should understand the value of investing, the difference between a stock and a mutual fund, and the significance of saving for retirement. Third, for young people, it is essential to learn to budget. The TD Ameritrade survey found that on average, teens carry $749 in debt, which demonstrates that many teens struggle with being responsible about their budgets and spending more money than they have. Budgets don’t need to be detailed and complicated, simply be mindful of much money you are earning every month, how much money you are spending and how much money you are putting aside into savings and investments.
Learning about personal finance gives you the knowledge and understanding to make smart money choices. Thus, you become more in control of your own life and are empowered to do the things that matter most to you. We all know money can’t buy happiness, but it can definitely make you comfortable.
Please note that this blog post represents the opinions of Alexandra Fletcher and is not representative of the official stance of the FCSS-FESC.
Sources:
9 Reasons Why Personal Finance is Important
Why Isn’t Financial Literacy and Money Management Taught in Schools?
Why Isn’t Personal Finance Taught in School: Data | NFEC
Why They Don’t Teach Us About Money in School
Most Canadians Feel They’re Financially Literate
10 Things Teens Should Know About Money | Personal Finance | US News
Why is Learning Personal Finance Important?
15 SUBJECTS You Should’ve Been Taught in SCHOOL But Were Not.
