Forms pile high atop the desk of a young adult riddled with the task of bills and taxes. These foreign documents seem like the world’s end, and the work to eliminate them is only more daunting.
A car dealer opens the door to his office, grinning and hoping that today, another foolish college student will come in and purchase an overpriced car with interest rates so high that profit is skyrocketing for the dealership.
A high school student, burdened with a tired mind and eyes, enters his first “personal finance” class.
Millions of young Americans are thrown into the country’s economy and need help to stay afloat. 10-40s, debt and loans are mysteries to many, yet they are vital information to every citizen.
Schools across the country are introducing personal financial literacy-enhancing classes. This includes Lakeland High School, which puts students through a personal finance class to prepare the students for life outside of the classroom.
Money management skills such as budgeting and saving techniques are taught in these classes, and students are shown how to categorize their spending to fit their needs properly. Many high school students need to pay more attention to the importance of a budget due to reliance on parents doing those things.
When the student is then left on their own after school, being able to save money for bills and taxes can be difficult. The self-control taught in these classes is incredibly beneficial after high school.
While it may seem like common knowledge because everyone does it, filling out tax forms and bills seems to be one of students’ most significant concerns.
“Yes, because filling out tax forms is in our near future,” Chloe Neff said.
The class allows students to learn the tax cycle that takes place annually and how to fill out each form correctly to know that they are keeping all the money that they can. This saves millions of dollars every year when taxes are filed correctly.
77% of American families have debt affecting their daily lives. Whether car, house, or school debt, it piles up in millions of dollars in the country. The nation’s total personal debt is at an all-time high– 14.96 trillion dollars.
Teaching students how to avoid this debt initially can cut back on some of the tremendous debt pileups in America. Giving alternatives to expensive college tuition is prominent in the class and of high importance, considering the students are likely to attend an after-school program such as college within the next few years.
Credit card debt is also heavily addressed in the course.
Showing students the consequences of a credit card and untracked spending allows them to understand what a credit card is and how to approach best the topic of owning one. Interest rates and fees vary endlessly from card to card, and knowing which is best suited to you is highly beneficial for those looking to invest in a credit card and start building their credit history.
Not only are the skills attained in this course beneficial after high school but also during. The class gives kids real-life situations and emergencies through simulations. Teaching the students to react reasonably and wisely with their money to these unpredicted emergencies and charges shows the students to be prepared for anything.
“Clothes, drinks, coffee, Stanley. I spend my money every single day. I wish I could save the money for college and of course, more clothes,” Neff said.
While teaching preparedness and future skills, the class also shows kids how not to get distracted from their goals and save money to invest in their future. By informing the students about different ways to save, such as stocks, bonds, and savings accounts, students are free to save money for their future.
Suddenly, that pile of bills on the desk seems smaller. As the person remembers the skills they learned in their High School personal finance class.
The car salesman shakes his head as he only sells cars with reasonable prices and interest rates. The customer thought back to that personal finance class he took all those years ago and saved himself a couple of thousand dollars.
The student is confident in their future, knowing that the personal finance class they are sitting in will help them achieve their dreams.
