Band 6+: In many countries, students who leave high school have no understanding of how to manage money. Why is this the case? What can be done to improve students' understanding of how to manage personal finance?

An increasing number of people who are not proficient in managing their money has become a contentious issue in many nations. This problem stems from the absence of practical skills in schools and the lack of parents’ engagement in discussing money-related topics in early ages. This essay will discuss the causes further and offer some solutions to address this issue.

The main reason why people are bad in managing their finances is because they were not educated about personal finance when they were at schools. For example, in Indonesia, students learn about accounting and economy in general, but they are not trained how to earn an income and organize them properly. Additionally, this problem is exacerbated by parents who do not introduce their children about money-management skills and behaviors, such as the amount that should be saved and controlling consumptive behavior.

There are several ways to address this problem. One effective method is that governments should implement an education system that educates students about real-life skills at early ages. In other words, they should be taught about finding jobs, cooking, and managing their money, as this knowledge will help them to navigate challenges in their lives. Furthermore, parents should inform their children about tips and tricks of saving money and how to invest their money prudently.

In conclusion, financial problems that arise in adults is owing to the absence of practical skills mentoring in schools and it is aggravated by parents who do not introduce them about basic financial literacy, such as saving and investing. By incorporating practical skills at schools and homes will pave the way for a better society with less financial difficulties.