Teaching Financial Literacy in High School: A Necessity or a Waste of Time?
As high school students approach the threshold of adulthood, many are left unprepared for the financial responsibilities that await them. While parents are often seen as the primary source of guidance, the school system also plays a crucial role in equipping students with essential financial skills. This article explores the importance of teaching high school students how to file taxes, balance a checkbook, and manage personal finances.
Why Should High Schoolers Learn About Tax Filing?
Many adults, including myself at the age of 70, can recall a time when they had to learn to file taxes or balance a checkbook without any formal instruction. Yet, these skills are not typically covered in high school curriculums, leading to a generation of students unprepared for the financial tasks they will face post-graduation.
When I finished high school and moved out, the local bank provided me with a quick overview of how to manage a checkbook. The process was surprisingly easy, and the instructions were clear and straightforward. Similarly, tax forms like the form 1080EZ were simple to fill out and understand. However, it seems a bit illogical to spend valuable instructional time teaching high school students such simple and straightforward tasks.
The Changing Landscape of Personal Finance
With the rapid shift to digital transactions, the relevance of traditional banking practices like writing checks is diminishing. Today's students are more likely to rely on electronic transactions and online tax filing rather than paper checks. The tax laws also change frequently, often making previously learned information outdated by the time students need to apply it.
A Parental Role in Financial Education
Another significant factor in financial literacy is the role of parents. Parents teach children the basics of managing checkbooks, opening bank accounts, and filling out tax forms. With the roughly 8,760 hours available in a year, students spend more time with their parents than they do in school. Consequently, parents can play a crucial role in passing on essential financial knowledge.
The Consequences of Dropping Business Courses
The current financial landscape prompts a critical look at the decline in business and personal finance courses in high schools. Many schools have reduced the number of available courses, including introductory business courses that provide a comprehensive overview of handling personal finances, managing small businesses, and filing taxes.
During my junior high school days, we took these classes that taught us how to deal with taxes and small business management. These courses were incredibly useful, providing me with the necessary skills to start investing in the stock market. Today, with growing personal wealth and the need for independent financial management, the importance of such courses cannot be overstated.
As a retirement investor, I manage my own pension and handle my expenses and investments. Personal financial literacy is more important than ever, especially in a world where financial challenges are increasing.
Conclusion
To prepare our youth for the financial world they will enter, it is imperative that high schools incorporate essential financial education into their curriculums. Teaching students how to file taxes, balance a checkbook, and manage personal finances is not only practical but also crucial for their future success.
Parents and educators alike must work together to ensure that the next generation is financially literate and capable of navigating the complex and ever-changing financial landscape. By fostering a culture of financial literacy, we can empower students to make informed decisions and build secure financial futures.