Personal finance is difficult to master without guidance, but this law will make it easier for students to make smarter decisions
High school students and young people, in general, are under so much pressure to make major decisions about their futures and lives without adequate exposure to or understanding of their personal finances.
After all, how can they possess financial literacy when it’s never been taught to them? Schools and families aren’t doing enough to educate, empower, and guide young people who struggle to manage their money, make smarter decisions, and plan for their futures in an already crumbling global economy. Florida’s decision to mandate financial literacy and personal finance as a grad requirement is a major win for several reasons, including:
It will teach them the value of money
A major effect of this program will be teaching teens and young adults the value of money. With many young people relying on their families, parents, and even the state to fulfill their basic needs, while also taking care of their indulgences, it can be difficult to understand the value of money on its own. It’s not to say they’re ungrateful, but money is definitely something many young folk take for granted.
They’ll learn how to make better financial decisions
As a result of learning more about personal finance, they'll be able to make better, more informed financial decisions as well. When students understand the implications of their financial decisions, whether it's taking on massive debt, lifestyle choices, not budgeting properly, or failing to keep up with taxes, they’ll be able to make smarter choices about what they should be doing instead.
This may go a long way in helping reduce debt
Speaking of debt, this decision could go a long way in helping young people reduce personal debt as well. When you're not looking at the big picture or familiar with the impacts of your decisions in the present, you're likely to take on massive personal debt to go to college several states away, drop out without your degree, or take out a massive loan for a shiny new car. As 44.7 million people in the US struggle with student debt, amassing over $1.86 bn, this is one of the most necessary goals and outcomes of this law.
It will encourage more saving and investment
Personal finance literacy also encourages students to build their wealth and invest more efficiently while recognizing that money is finite. Idle money is depreciating in value, and spending it on things that will also lose value is also pointless. Instead, this will help young adults find ways and make decisions on how to increase their wealth, add more value to it, and allow them to save for major life decisions such as homeownership, retirement, and general financial security and freedom.
They’ll set better financial and professional goals
With a clearer understanding of money and finances, young people will remain empowered and freer to make professional, personal, and financial decisions that are good for them. Career switches, entrepreneurship, grad school, marriage, and buying assets will be easier knowing more about personal finance and what each decision entails.
It’s important to educate students and empower them to make better decisions about their future. We’re also sharing other great financial advice and helping our readers set achievable goals and look at their finances holistically. Subscribe to our newsletter today, and stay up to date.