There several money lessons that you need to learn after high school. This is because you are about to enter into college. When you move out of your home to live on campus, you will be in charge of fending for yourself. You have to learn how to take care of yourself, feed yourself at the right moment and more importantly, manage your finances.
In the past, financial lessons are something that is not really given much attention in school. Teachers focus on helping you count, compute and accomplish complicated calculations. But with the increasing problem of student loans, it is evident that we need to change what is being taught in our schools.
In an article published on Time.com, it is revealed that the student loan situation is not just affecting the personal lives of young adults. It is also starting to affect the economy. The article revealed that in 2003, graduates owed a total amount of $253 billion. A decade later, the debt is already $1.08 trillion – more than 300% higher. Since young adults and new graduates are burdened with debt, they are unable to invest on themselves. They cannot buy a car, a home or even finance a master’s education without having to borrow money again.
Where should you get your financial lessons?
This does not have to happen because money lessons can come from anywhere. Life in general can provide you with all sorts of learning that can help you live a better life. But sometimes, even the obvious lessons can slip past us. Even those that you should have been learning in school can go unnoticed. This is especially true when you do not know what you are looking for.
According to the compilation of financial literacy studies in FinancialEducatorsCouncil.org, parents are expected to be the main source of money lessons. This was based on an online survey with 622 participants. 65% believed that parents should teach their children financial literacy, 16% believe high schools should do it while 12% believe it should be done through the youth’s own initiative.
In truth, all three, parents, school and the youth should work together to ensure that the essential money lessons are imparted to those who are about to go to college. Thankfully, more and more people are made aware of this need and they are slowly but surely, acting on it.
5 non academic financial lessons you will learn in school
For those of you who are still in high school or you are a parent with kid in middle school or high school, you may want to consider these 5 money lessons that you will learn in school. Unlike your other lessons, these are non-academic. Your teachers will not be discussing this in the classroom but these are important lessons that you can pick up yourself.
Do your homework always.
In any endeavour that you will make, whether it is financial or not, you need to do your homework to make sure that you understand what it is exactly that you are getting yourself into. We got a lot of financial lessons as children and in most cases this is not a part of what you will hear. It is important for you to realize that venturing into anything new should immediately begin with research. If you do not understand something, you have to find out. Do not wait for it to be revealed to you. Be proactive. Just like you will get into trouble (especially with your teacher) if you fail to do your homework, the same will be true when you get out of school. Your lack of preparation could lead you to make a mistake that can ruin your financial life completely.
Listen to your teacher but ask questions when necessary.
In the past, students are only expected to sit in class, listen to their teacher and take down notes. That is no longer how education is being conducted. Now, students are encouraged to participate in class, ask questions and formulate their own assumptions about the lesson. When you get out of school, you will be placed in a situation that will require you to get the help of an expert. If this happens, you should still avoid taking the situation sitting down. You are still expected to understand what the professional is trying to help you with. And if there is something that confuses you, do not be afraid to ask. This is how you can avoid getting scammed out of your money.
Being late has consequences.
Remember how being late will put you in detention? This is also something that you should remember all your life. It may not be like the other money lessons but this is equally important. There are consequences to being late – especially when it comes to your payments. You will be imposed with late penalty fees, finance charges and your credit score will also suffer in the process. You need to learn how to be more punctual. It will say a lot about your character if you have a habit of delivering on time.
Memorize what’s important.
In school, we are always memorizing something. Lesson, equations, and important people in history – all of these are oftentimes required before you graduate. When it comes down to it, you will realize that the habit of memorizing should not stop when you reach adulthood. You need to memorize your due dates, financial goals, and even the mistakes that you have made in the past. It may not be the same as the memorization in school but remembering the essential money lessons will help you avoid mishaps and wrong decisions.
Enjoy your time for recess.
Lastly, you need to enjoy recess. This is something that you look forward to when you were young. You should not lose that even as you get older. Give yourself a break from time to time. You deserve the rest and you should make sure that you will enjoy every minute of it. When you decide to take a break from the usual hustle and bustle of your life, it is important to really forget about your worries and relax. You may view it as a waste of your time but studies reveal that it is actually important in boosting your productivity.
Some of these lessons may not be “money lessons” but you will find them to be essential in helping you improve your financial situation.
6 reasons why financial literacy is very important
In an article published in USAToday.com, a particular school was featured for teaching the high school students how to set financial goals. It is revealed in the article that having goals give students the initiative to be more conscious of their financial decisions. Experts quoted in the article mentioned that a lot of the consumers are in the dark when it comes to making financial decisions. This is because they lack in the financial literacy department.
There are many reasons why you need to be financially literate and here are 6 of the most important.
- You need to know the rules. It may seem like a cliché but life really is a game. Every action that you will take will determine if you will win or lose in life. If you do not know the rules, how can you even hope to win? Money lessons will help you understand the rules of the game called life and how you can avoid losing the big and small battles that you will encounter along the way.
- You need to know the procedure. Knowing the procedure will naturally follow when you know the rules of what you are trying to accomplish. Having the steps will make your journey a lot easier to handle and it will allow you to keep tabs on your progress. Not only will it be easier, it will also be faster for you to accomplish your goals.
- You need to know your options. To make the right decision about something, you have to know what your options are first. If your list of options is incomplete, how sure are you that what you are choosing is the right one for your unique situation?
- You need to know the consequences. When you know the options, you will also find out the consequences that are associated with each option. That is how you make the right decision. You weigh the pros and cons to see which gains and sacrifices will be beneficial to you.
- You need to know your rights. Financial literacy will help define your rights so you can protect yourself. For instance, if you are in debt, you need to know the debt relief laws so you know when your rights are being violated. Not only that, you will also be made aware of the legitimate options that you can pursue.
- You need to know the solution. Lastly, money lessons will also inform you of the solutions that you can use to help you out of tight spots. Being able to implement the solution immediately will help keep the situation from getting out of hand.