Discover the Basics of Personal Finance Education in Schools

Teens encounter a set of decisions related to money that is unique to their age group. For that reason, it’s prerequisite to create financial education programming that guides them through those decisions. If you focus on the money choices they have to make in the near future, they’ll learn more readily and stay engaged with the lessons.

One seminar that’s popular for personal finance education in schools is purchasing a vehicle. Anyone who remembers their first car-buying experience will grasp how important it is to know the basics of applying for an auto loan, negotiating with salespeople, budgeting for the purchase, and being able to identify all the expenses – both overt and covert – involved with owning a car. Those expenses include insurance, gas, parking, wear and tear, and maintenance.

A second popular workshop for teens helps answer the question, “How will I pay for college?” Those youth who plan to pursue higher education need guidance on potential funding streams, budgeting, career choices, ROI, and selecting the right educational institution to meet their needs. Learning how to live on one’s own is a key part of this decision-making process, so aiding youth to move toward independent living is another crucial area to cover.

Focusing on these popular topics helps ensure the success of a personal finance class for high school agers. The same fundamentals should be part of any virtual personal finance training, too.

Another invaluable component of personal finance in schools should be the obstacles kids face in terms of personal finance management. The situation into which they’re born; the behaviors they’ve picked up; the influences of advertising, parental modeling, and peer pressure; and their access to high-quality financial systems – all these features represent potential supports or barriers to financial success. Personal financial education in schools must address these issues to have maximum impact.

Few children receive formal money education in school. Parents should be teaching their kids about money, but are they? In a recent study by the Financial Capability Network, 86% of parents surveyed said they talked regularly with their children (aged 7-17) about personal finances. And among those who claimed they did so, 85% said they discussed the subject at least once a month, while half reported that they talked about money with their kids “often” or “twice per month or more.” http://info.everfi.com

Part of these discussions for teaching kids about good money management should include information about setting up optimal systems for handling one’s money. Personal finance education in schools or at home should cover how to set up savings, checking, and retirement accounts. This simple planning step can underpin the development of healthy fiscal habits that can last through one’s lifetime. Guiding the process of financial management can help youth avoid the pitfalls of making costly personal finance errors.