5 Essential Money Lessons You’re Never Taught in Schools
- 21K School
- 3 min read
Most high school graduates know mitochondria are the cell’s power source, but they do not understand the distinction between stocks and bonds. Even though they are taught how to calculate a triangle’s hypotenuse, students cannot complete their tax returns.
The sad reality of our current educational system is that most high schools do not offer a personal finance course, meaning that most kids graduate and enter the workforce without knowing about money. Perhaps even the most fundamental concepts, like budgeting in schools, are not covered in the classroom.
Also read, 5 Money Saving Tips to Survive in School Education during a Recession.
In this blog, I’ll list five essential money lesson plans to learn from a young age:
Five essential lesson plans on money
1. You don’t necessarily need a reason to save
Although it may seem obvious, understanding this is crucial. Saving is frequently thought of as having a specific goal, such as a house, car, etc. In a world where events are predictable, saving for a plan makes sense. However, this is not the case in ours.
Understanding that investing a little money, even if you don’t have an explicit use for it, might help you avoid experiencing extreme stress when unpredictable circumstances arise.
Although the benefits of saving could affect how you live in the future, if you use it to prepare for specific goals, which, let’s face it, usually include purchasing something, it can get emptied. You would forfeit the actual value of having savings if that were to happen.
2. Making a budget can simplify your life.
People who routinely create monthly budgets for all of their necessities must have seen improvements in their lives, which include a reduction in stress and ease in daily activities.
It is accurate to say that creating a budget entails developing a plan for how you will use your finances. You won’t overlook making your regular bill payments if you have a decent budget.
Before using it for amusement, you will also save some money. Therefore, an understanding of budgeting in schools is quite essential.
3. Discipline takes you to freedom.
Adopting discipline is one way to enjoy freedom. What does freedom mean? Of course, it varies for each individual. If helping others in need is something you are interested in, having money might allow you to do that. How do you discipline yourself? You may regularly save monthly by automating your savings while adhering to your established budget.
4. Although money can’t please you, it can provide you with choices.
Being too motivated by money or making money for its own sake is not the most vital aspect of life, and it can even be disastrous. But it is essential to consider that striving for financial security is a good thing, and I believe it is something we can all work toward.
Being financially stable can provide you options, not because everyone must lead a consumerist-fueled lifestyle. You can accomplish your aim through money, not the target itself. As unique as life itself is, the target can be.
But having plenty of money can also give you the freedom to make decisions that will significantly influence how you live your life, and this is something to consider.
5. Time and its importance.
Time is significant in many facets of life. As an illustration, you risk missing your flight if you are only a few moments late getting to the airport. When it comes to money, you will be fined if you pay your payments past due.
Time plays a crucial role in saving, too. For instance, if you keep some amount every month, the earlier you start saving for retirement, the more money you have when it’s time to retire.
Here’s another article you may find useful – How to Protect Your Wealth in an Economic Downturn during education.
Money management and budgeting in schools are just not covered in classrooms. To compensate for that, there are fortunately many resources available. Start with the money lessons listed above, and keep your mind open to new information with 21K school. In this manner, you can gain financial control and design the life you want. This is why more schools need to teach sale skills from early grades.
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