Why Young Adults Need to Learn About Personal Finance in School

Children are sent to school for the purpose of learning and developing talents and skills that will prepare them for future life in the real world. While it is true that they are taught grammar, math, Biology, languages, and skills like baking and other practical arts, they are usually found lacking in the subject of personal finance.

To manage your own personal finances is basic and essential when you want to become self-reliant and when you want to put your life in order and start a home of your own. To have the fundamental understanding of personal finance means that you are better prepared to face life ahead of you. It is very common, for instance, how young couples get on with their lives together with high hopes for the future, only to be met with disappointment and soon find themselves entangled in debt. This situation is just a result of not learning the essentials of personal finance.

Without gaining these basic skills soon enough, they may find themselves sinking deeper into debt. Then they start to lose whatever assets they had acquired, their homes, and possibly threaten their relationships. Not knowing what would happen if you spend more than you earn, or why is it important to save even just a small portion of your earning, or why is it necessary to be cautious when using credit, is a sure reason for falling into the mire of debt. If you try to handle your own household without basic learning, the future would be bleak and failure is not far ahead.

This is the reason why young people in high school should be taught these primary tenets. They need to acquire these skills early on in order to be ready when they are on their own, whether in going to the university, in having a job, or even living at home.

Now, therefore, is the perfect time for them to learn how to live within a budget, to not spend more than what they earn, and to save, before they face real life and have regrets later on. The worst thing they can do for themselves to build up a ton of debt, have bad credit and not be able to make those important life purchases down the road, like a home or a car.

Being equipped with the fundamental knowledge in personal finances will mean a world of difference in the future for high school children

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The Concept Of Finance In Different Contexts

The word finance has the sane connotations wherever it is used. It means liquid funds or cash reserves to be utilized for various purposes. For a very poor man, finance has only one meaning and that is to be able to generate enough to get him two meals a day. For a common man, it means to be able to pay off all his loan installments, his kids school fees, and his and his wife’s requirements depending upon their social circle.

For a small shop owner, the word finance means the funds he needs for his next purchase for the big occasions like Christmas and New Year. To an industrialist, the same word means his ability to complete the ongoing projects and to sign off new contracts with other companies. For a country, finance means reserves to be spent on the development of infrastructure, imports, healthcare, research and development agriculture and all other essential sectors. But in all situations, the essence of the word remains the same. It’s only the degree and magnitude that change.

Finance in itself is a big subject that is taught in business schools according to scientific rules. These finance schools produce youngsters trained in the principles of finance that go on to hold the reigns in big multinational companies. People having knowledge of sound principles of finance make the financial policies of the companies and they are accountable if any financial irregularities are found in the balance sheets or the accounts of any company.

Banks and other financial institutions are the backbone of any economy and they serve the financial needs of the people by making available loans and other mortgages to let them carry on with their projects like buying a car, electronics, home or any other thing. Banks even provide finances to let a person complete his higher education.

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