Why Financial Planning Should Be Taught in 9th Class: Importance and Benefits
Financial planning is a critical life skill that many individuals don’t have until it is too late. According to a report by the National Financial Educators Council, only 24% of millennials demonstrate basic financial knowledge, and only 8% have advanced financial knowledge. Financial literacy needs to be taught as a core course in schools to promote a financially literate society. The focus of this article is to discuss the benefits and importance of teaching financial planning to students in the 9th grade.
Importance of Teaching Financial Planning
Financial planning refers to the process of determining how to manage your money to achieve personal financial goals. With the right financial education, students can attain necessary financial planning skills that will benefit them throughout their life. Here we’ll take a look at the importance of teaching financial planning in the 9th grade.
1. Early Financial Planning Sets a Strong Foundation
If students are aware of the significance of financial planning at an early age, they are more likely to take it seriously and use it to their advantage. Early financial planning not only sets the foundation for sound financial decision making but also fosters responsible money management. Knowledge of financial planning will drive these students to grow financially and become self-sufficient adults.
2. Future Life Success
By teaching financial planning in the 9th grade, students will be equipped with the tools necessary for success in adulthood. These tools include managing credit cards, budgeting, and establishing savings to improve the quality of life in the future. Additionally, financial planning lessons imparted at school will extend beyond the classroom, leading to a more financially secure future for the students.
3. Helps Students Avoid Financial traps
Young adults entering college may be inundated with credit card offers or feel pressured to take out student loans without a clear understanding of the overall cost of borrowing. Financial planning courses can guide them through these challenges and teach them how to manage the financial responsibility of credit while also keeping an eye on the overall price of borrowing, which can lead to a less financially stressful life.
4. Impact on Society
A society empowered with the knowledge of financial planning can significantly benefit the economy. It enables them to make sound decisions and invest in their future while also safeguarding themselves against financial risks. Students who are financially literate will also contribute to economic growth and development in the long run.
Benefits of Teaching Financial Planning
The benefits of teaching financial planning in the 9th grade extend far beyond personal financial independence and responsibility. Below are the advantages that students can benefit from if they are introduced to financial planning early on in their lives.
1. Vital Life Skill
Financial planning is essential for everyday life, and students who are taught personal finance skills early on are more likely to reap the benefits of these skills. Financial planning helps them understand the value of money and how to manage their finances better.
2. Improves overall Academic Performance
A report by the University of Wisconsin found that students who take personal finance courses have higher credit scores and lower debt levels than those who are not taught financial planning. As a result, they perform better academically as they are not stressed about their financial situation.
3. Encourages Good Spending Habits
Financial planning promotes responsibility, discipline, and awareness of spending habits. Students taught financial planning early on in their lives are more likely to make wise spending decisions, manage their credit scores effectively, and avoid unnecessary debt.
Conclusion
Teaching financial planning is a critical step towards empowering students with vital life skills. Early education provides students with a strong foundation and equips them with the resources they need to achieve financial independence. Providing comprehensive financial education in schools helps students make informed decisions that impact their lives as well as society’s economic health. Implementing financial planning in the 9th grade should be a priority for school districts, and parents should encourage schools to include these courses in their curriculum.
