Nowadays, it is common for high school students to graduate school without being financially literate in most corners of the globe. The main reasons behind this are poor structured school curriculum and financially illiterate parents. However, there various effective measures that can be implemented to tech students to master their money management skills.
Part of the explanation lies in ineffective educational frameworks designed by those prioritize theory-heavy subjects -math, philosophy, and law – over practical subjects -financial literacy and business. With traditional schooling system, many schools are fixed to offer only theoretical lessons, resulting in low practical ability in real life. As a result, most high school students are graduating without knowing compound interest. Another contributing factor is parents with limited financial knowledge who are graduated from same standard educational systems. Since parents are coming from the same flawed school system, they may not teach their kids monetary knowledge, thereby reducing the number of financially educated graduates.
There are two main measures that should be taken to address this issue. To begin with, governmental authorities and school administration should redesign the teaching system by mostly focusing on real life applicable skills like economic awareness. This can be achieved by introducing new curricula on monetary education. If such initiatives are implemented, students are more likely to graduate as economic proficient. Another effective solution is to make parents financially literate, so they may teach their kids that monetary skill. This can be done by conducting workshops in personal finance and providing unlimited access to online materials. As a result, parents are likely to learn that skill and willing to rise their kids with financial intelligence. This approach has proven, as it has led to increase both parents’ and children’s financial proficiency.
In conclusion, the high level of financially illiteracy among high school graduates is mainly driven by factors such as fixed educational systems and financially uninformed parents. To take this issue effectively, governments and school executives should offer courses on financial literacy with conducting free finance focused workshops for parents.