Many students are graduating higher education without any knowledge related to finance and, this can result in financial problems when they become adults. This issue can be caused by two main reasons: lack of financial education and over-reliance on parents and the most suitable solutions are introducing financial literacy classes as well as providing real-life money simulations.
First and foremost, school system does not teach money management classes that can be one of the main factors, leading to misunderstandings of how money works in their twenties. Another reason why this issue is becoming commonplace is that parents take responsibility to manage overall finance in their home because they do not trust on their children. In other words, the children has never bought products, bargained with sellers or even used ATM machines in their whole life.
Conversely, there are of course viable solutions to tackle this problem. One of them could be financial awareness courses which are taught by well- qualified teachers to enhance students’ financial- decision abilities. In these classes, students understand not only saving money, but also allocating it effectively. The other primary solution is that teachers need to show how to manage money practically like classroom shopping activity, saving challenges, which are the ways to acknowledge more about money. For instance, tutors give them a week to save funds, while spending wisely or students play a game in the classroom about either shopping or selling by dividing into groups. Those solutions would be useful to develop children’s managing and spending skills in terms of finance.
To sum up, students face economic challenges whether allocating correctly or saving due to aforementioned reason. Introducing money management lessons and providing opportunity to practice it in real-life situations can effectively solve the problem.