Gone are the days when financial education was not considered an integral part of the overall education system. In today’s world, it is crucial to know your finances to be able to maximize your earnings with a few trading tricks.
But sound financial knowledge cannot be acquired in a couple of days or weeks; it takes years of study to understand the market.
Which is why it is important to start early. Hence, the need to include financial literacy in schools and colleges has become crucial. Once the fundamentals are right, they can try advanced things like learn option strategies and more.
Here are a few reasons why schools and colleges must teach financial literacy to students:
- Expense Management
Teaching financial topics to students in schools will help them manage their expenses efficiently. During this time, instead of spending their pocket money recklessly, they will learn how to save and use it in better places.
Suppose a kid spends his pocket money buying candy; after having the right financial literacy, they will try to save that money to buy something better later. It will also teach important things like budgeting, investing, emergency funds, and more which will come in handy later when you have a Demat account and start trading.
- Debt management for college students
College students often make poor financial decisions that can make them land in debt. These situations can be avoided if the students have sound financial knowledge. Plus, as mentioned above, the students will learn how to create an emergency fund, which will help them sail through rough times.
Also, with the right budgeting skills, they will be able to pay off their debts without delays. Plus, they will learn about loans and how they work; this will help them stay away from loan offers with high-interest rates and processing fees.
- Creates a Strong Financial Foundation
With the right financial knowledge in the early years, students will be more prepared to handle advanced things like learning a trading trick, retirement planning, and more.
In fact, it makes them able to intelligently handle things like buying a home, planning a marriage, and setting other financial goals.
- Making Informed Career Decisions
With the right financial knowledge, students can make better career decisions. Students laced with the right financial skills can understand the trends and where the job market is headed, which can help them pick a suitable career.
In fact, if students want to pursue a career in the finance sector, a school education will provide the ideal head start. If they know a lot about investments and trading they can begin to invest in stocks from an early age.
Not only the finance sector, students can use their knowledge of the economy and job sector to ace interviews, especially the salary negotiation part.
They can have a say in the benefits and facilities provided by the company.
Conclusion: The Bottom Line
The importance of providing financial education to students has grown tremendously. It’s not about having knowledge about trading or NSE charts, it’s about being aware of how to handle money and make sound financial calls from an early age. Plus, students can learn about the job market and the economy to be able to ace their interviews, especially the salary negotiation part.
Adding to that, the right education will protect college students from falling into the debt trap. Plus it will help in future with things like long term trading.