Why Financial Planning Should Be Included in School Curriculum

Financial planning is a critical life skill that should be taught in K-12 schools and colleges. While Virginia has implemented an economics curriculum that includes basic personal finance topics, many schools are still falling short in providing essential financial knowledge to students. This article explores why financial planning education is important and discusses the potential benefits of incorporating it into school curriculums.

The Importance of Financial Education

Personal finance is often seen as a specialized area of knowledge, making it challenging to integrate into the already crowded curriculum. However, the lack of financial education can lead to significant issues later in life. For instance, without understanding concepts like budgeting, savings, investment, and taxes, students are at a higher risk of making poor financial decisions that could haunt them throughout their lives. This includes overspending, accidental debt accumulation, and a lack of financial freedom and security.

Why Financial Literacy is Not Mandated

The reason why financial planning is not widely taught in schools is multifaceted. Firstly, schools are already stretched to cover the required subjects, leaving little room for additional topics. Politicians and financial institutions also have strategic reasons not to promote financial education. Government-funded programs and financial institutions often have indirect incentives to keep people financially illiterate. This can lead to a situation where people rely on forgiveness or other forms of financial aid, which could be avoided with better financial understanding.

Historical and Cultural Context

The education system in the United States was initially designed by Thomas Macaulay to produce a workforce for industrial factories. This historical context has led to a curriculum that focuses more on academics than on life skills. As a result, essential skills such as financial management are neglected. This narrow focus on traditional academic subjects contributes to the lack of financial education in schools.

Proposed Curriculum Changes

What is the solution? Integrating financial planning into the school curriculum would address this gap. It should be part of a comprehensive life skills class for freshmen and sophomores. This would help retain students who might otherwise drop out. Additionally, reinstating civics classes to teach students about local and state government institutions would provide a broader understanding of how civic actions impact personal and communal finances.

Real-World Benefits of Financial Education

The benefits of financial education extend beyond academic performance. Students who learn about personal finance are more likely to:

Manage their finances effectively Make informed decisions about credit and loans Save and invest for their future Plan for retirement Reduce financial stress and anxiety Support their families and communities financially

Furthermore, by teaching financial literacy, schools can equip students with the skills needed to participate effectively in everyday life and prepare them for college or future careers. Encouraging a culture of continuous learning, schools can emphasize the value of education as a lifelong process.

A List of Basic Life Skills for High School

Time management Health and nutrition Cooking and meal preparation Budgeting Financial planning and investment Basic computer and digital skills Critical thinking and problem-solving Communication skills Resilience and adaptability

Integrating financial planning into the school curriculum is a critical step towards preparing students for the real world. By doing so, we can empower them with the knowledge and skills necessary to navigate life's financial challenges and achieve long-term financial stability and success.