What If High School Graduation Requirements Included a Finance Course?

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I recently wrote a series of six articles for The Epoch Times about basic finance. The articles could become the basis for a high school course, even a prerequisite for graduation. Most public-school systems don’t offer such courses in their curriculum. If you haven’t seen this series, please read through these to get a sense of the content and importance of understanding finance early enough in life to get you off on the right foot when it comes to saving, investing, financial planning and budgeting, and the measures and methods for evaluation to make smart financial choices.

While financial literacy—budgeting, loans, credit cards, interest calculations, insurance, retirement planning, and saving—is taught in some high schools, it is more the exception than the rule. According to a CNBC report, the extent to which financial literacy is taught varies significantly from school district to school district. There are few schools offering robust programs, most of the rest that do offer finance only touch on the subject in the context of a broad economics or life-skills class.

Teaching personal finance in high schools is crucial for several reasons. Graduating high school students face immediate financial decisions, such as college expenses, housing costs, transportation, and insurance. Being grounded in finance will help when it comes to making financial choices and decisions. The financial decisions made right after high school can affect individuals throughout their lives.

From student loans to retirement planning, understanding and appreciating financial concepts will give young people a head start in their lives, with a greater chance of wealth accumulation given all the years they have ahead to build upon net worth and wealth. A quality curriculum can teach essential financial management skills, including financial analysis and budgeting, managing credit and loans, investing, and risk assessment. These skills empower students to navigate financial challenges adeptly and adroitly.

Most adults agree that personal finance should be taught in high school. However, only a few states currently require dedicated personal finance courses for graduation. Advocating for federal requirements could bridge this gap—and may be needed—as many young people are in dire straits financially today, living paycheck-to-paycheck and only one emergency away from financial devastation.

Financial scams have become increasingly sophisticated. Beyond learning how to be careful when it comes to crypto, foreign exchange, precious metals, and other investing schemes that find their way into our private lives through texts, email, or phone calls, a course that includes lessons in how to protect yourself from these scams and misinformation would be added insurance that you aren’t caught in a phishing scam or nine other common online scams to watch out for. (https://www.twingate.com/research/phishing-9-common-scams#).

The six-part series I wrote covering basic finance can be read here on The Epoch Times as I mentioned. Here is just an example of the course structure and syllabus I designed for high school seniors:

Example Syllabus (Courtesy of Rodd Mann)

Example Syllabus (Courtesy of Rodd Mann)

Teaching financial literacy at a younger age helps young adults develop healthy, lifelong financial habits. The main principles of financial literacy include earning, saving, investing, protecting, spending, and borrowing. Within these broad categories are tips and tricks, as well as arcane theories and advanced tools and techniques. This article only suggests the basic components of money matters should be covered in a high school course and required for graduation.

Imagine how many young people today, tapped out on their credit cards, struggling to make their student loan payments, coming to grips with the many costs associated with owning a car, and experiencing the anxiety that comes with knowing they’re only perhaps one emergency away from having to file for bankruptcy.

Many of us are having to deal with financial stress and uncertainty today; we are plainly just worried and anxious about money. We can control a lot of things in our lives when it comes to money—if we are willing to take the time to study, learn, and inculcate good money habits. For what may be beyond our control can quickly turn into a financial nightmare if we suffer a loss of work, escalating debt, unexpected expenses, or any combination.

Even before the COVID pandemic and resulting economic shock, an American Psychological Association (APA) study found that 72 percent of Americans felt stressed about money at least some of the time. The recent economic difficulties mean more of us are now facing financial hardship in one form or another. Financial stress can lead to:

• Insomnia—Tossing and turning at night worrying about unpaid bills or a loss of income.
• Weight gain (or loss)—Anxiously overeating or skipping meals to save money.
• Depression—Money problems can leave you feeling down, hopeless, struggling to concentrate or make decisions.
• Anxiety—Money can be a safety net; without it, you may feel vulnerable.
• Relationship difficulties—Money is often cited as the most common issue couples argue about.
• Social withdrawal—Financial worries can cause you to withdraw from friends and retreat into your shell.
• Physical ailments—Headaches, high blood pressure, and heart disease, for example, which may become worse if you cannot afford the health care you may need.
• Unhealthy coping methods—Drinking too much, abusing drugs, gambling, or overeating.

In the broad world of money matters, much has changed, especially since the pandemic. Risky investing has become intriguing as so many people have made so much money that most of us know of others that have become wealthy putting money into cryptocurrency, non-fungible tokens (NFTs), stocks, or others of the many investment choices available today. Consequently, it is crucial that we get grounded in the basic tenets of money and investing. Just by doing that alone will take a big chunk out of the overall risk inherent in investing, and replace it with a higher degree of comfort that we will reach, along with achieving our financial goals and objectives.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.