Teaching Financial Literacy to Students: An Essential Skill for Future Success

Why Financial Literacy Matters for Students

At the age of 17, I find myself diligently contemplating about my financial future. Despite gaining exposure to financial discussions and participating in economics and personal finance competitions, the anxiety of managing money in adulthood remains. Regrettably, my circumstance is hardly exceptional. A considerable number of students across the United States graduate high school without the elementary financial skills required to navigate the intricacies of adult life.

The Need for Financial Education

A research conducted by the National Financial Educators Council reveals a sobering fact: merely 24% of millennials possess basic financial literacy. A Bank of America survey discloses that 53% of college students do not feel equipped for the real world’s financial responsibilities.

Most high schools overlook the need for money management, budgeting, or financial literacy courses leaving students ill-prepared to handle finances post-graduation. The education system falls short of acknowledging a common denominator among Gen Z students — their anxiety about their financial future.

My Experience with Financial Literacy

This past summer, I had the privilege of participating in the Bank of America Student Leaders Program where I worked at the Port Discovery Children’s Museum. This program offers high school juniors and seniors like me an opportunity to work in local nonprofits. Moreover, I received financial education coaching via the Bank of America’s Better Money Habits platform which underscored the importance of personal finance skills.

These skills will prove vital when I start my own business, helping me budget for startup costs, manage cash flow, and make informed investment decisions.

Advocating for Financial Education in Schools

By the end of the Student Leaders Leadership Summit in Washington, D.C., it was clear that our schools need to provide more financial education. We brainstormed ideas like integrating these topics into existing curriculum and creating engaging programs like a “Financial Literacy Challenge” which would guide students through real-world financial decisions.

The need for financial literacy education has never been more pressing. Economic instability is a reality that our generation needs to be prepared for. Teaching personal finance in our schools, right from elementary levels continuing through high school, shouldn’t be an optional subject; it should be a core component of every student’s education.

Leveraging Financial Planning Month

October, recognized as Financial Planning Month, is the perfect opportunity for educators, policymakers, and community leaders to highlight the significance of financial literacy. Schools and communities can use this opportunity to introduce financial education programs, conduct workshops on budgeting, saving, and investing, and invite speakers from financial institutions to provide real-world insights.

Financial literacy encompasses a wide array of skills that students need to navigate the complexities of modern life. From understanding credit scores and student loans to making informed decisions about insurance and retirement planning, these skills are foundational for personal and professional success. Equipping our future generation with robust financial literacy is not just beneficial; it’s a necessity.

Joseph Phelps is a senior at Mount Hebron High School in Howard County. He is a 2023 National & International Champion in the National Economics Challenge and runs a nonprofit organization, WEngineer, which provides over 1,600 middle schoolers with free STEM education.

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