The Importance of Financial Literacy in Schools: A Call for Change

Financial literacy is a crucial life skill that every individual should possess. However, many schools fall short in teaching this essential knowledge. There are several reasons for this, including the absence of financial education in standardized tests and math standards. Despite these challenges, integrating financial education into the curriculum can have a profound impact on students' future success and well-being.

Why Schools Lack Financial Education

One primary reason schools do not emphasize financial education is the lack of relevance in standardized testing. Financial knowledge is not typically included in state math standards, meaning that teaching these skills often does not meet the demands of assessments. Additionally, it is not immediately clear that teachers possess a deeper understanding of financial matters compared to the average individual.

Many teachers, myself included, teach a limited amount of financial skills such as checks and bank accounts, usually after standardized testing has concluded for the year, allowing some freedom to explore these topics.

Learning Financial Skills from Parents

The general belief is that parents should be the ones to teach their children about money management. In my case, I learned the basics from my parents, starting with a small allowance, opening a bank account, and understanding the concept of investments, all thanks to my journalist father. By the time I finished college, I had a solid grasp of financial concepts.

However, it is clear that a comprehensive unit on money and financial management would be beneficial for high school students. A course that covers this during the social studies requirement, explored over five years, could provide a foundation in civics, government, manners, morals, ethics, health, sexuality, and comparative religion, all taught as academic subjects.

The Negative Impact of Ignorant Adults

Another concern is the preference of American public schools to keep students ignorant about basic life skills. Harmless adults who acquire significant debt and struggle with money management are easier to control. This lack of financial literacy can lead to a lack of power and autonomy in their lives, forcing them to rely on the government for support.

Existing Programs and Recommendations

Many schools do offer programs focusing on personal finance. For instance, high schools often have a course called 'Personal Finance,' which covers topics such as credit cards, investing in stocks, and budgeting. If your school does not have such a course, it is advisable to attend school board meetings and advocate for its implementation.

Unfortunately, many educational systems emphasize fundraising activities over financial literacy. While raising funds for school activities is important, the focus on these activities might discourage the development of actual financial management skills. These activities teach kids to beg for money rather than how to earn, spend, and budget wisely.

In many schools, fundraising has become shameless, with numerous events that can be perceived as begging for money. This could lead to students graduating without the necessary skills to manage their finances effectively, potentially leading them to homelessness or other unfavorable situations.

The State of Teacher Compensation

The financial struggles of teachers often go overlooked. The funding for education primarily benefits teachers, but the reality is that teachers are grossly underpaid, especially in the early years of their careers. Teaching is a demanding profession, and fair compensation should be achieved once teachers have taught for at least 20 years.

Moreover, the pay structure discourages teachers from leaving the profession before they reach their retirement age, often in their late 50s or early 60s. This is a contentious issue as it may lead to a shortage of well-experienced educators in the future. While financial literacy should be taught to ensure students can manage their money wisely, the current system of compensation does not adequately support the educators who are tasked with this responsibility.