Managing your finances is one of the basic routes to stay happy and content. Having your finances intact makes your life secure and worth living.
Your level of understanding of your finances impacts your overall life. Finance is a broad term that includes investment, savings, budgeting, spending etc. A little miss on your finances can turn your life from riches to rags and vice versa.
Many people focus on financial knowledge from an early age to be effective in their approach. At the same time, some people do not believe in financial management in the early years.
Very few high schools teach the subject of financial management. Other subjects are given more preference than finances. However, finance is a part of everybody’s lives, from teenage to adults to aged people.
Managing the finance is not everybody’s game. If one wins, then other may not. Therefore, one should look carefully for personal finance whether a student or a retiree person.
In this blog, we have tried hard to show you the ways about what is the significance of personal finance while studying.
Significance of Personal Finance While Studying
Personal Finance is an essential skill that should be taught at the school level to give sufficient knowledge of finances. This blog states the importance of teaching personal finance at the school level:
Money- the all rounder
Once a child completes his/her school, every decision that they make will impact their finances. Entering graduation and after that reaching retirement, every step is taken keeping in mind about finances.
Many milestones are covered between the two mentioned stages, such as getting married, career choices, finding a job, having a child, buying a new home, buying a new car with the help of car finance with no credit check.
Every milestone is either affected by your financial status and knowledge or affects your current financial status or knowledge. Apart from these significant decisions, finance is a part of your everyday life and plays an important role.
For example, where do you eat, what do you wear, and where do you buy things? And many other things. Every day we face situations that require us to make fundamental financial decisions such as how much to spend on food, paying monthly bills and rents etc.
An adult may be able to make balanced decisions, i.e., saving and spending simultaneously. Still, it may be difficult for a young person to make an informed financial decision keeping all the factors in mind.
- The majority wants personal finance as a high school subject
Parents and other adults feel that financial education should be made compulsory in high schools as they have been through this stage and wish to make their children financially independent and safe.
It helps the children get a kick start and form their interest in handling their own finances. According to a survey, 64% of people want financial management to be a high school subject.
Despite all other factors that go against financial management as a subject, many people believe that acquiring financial knowledge at a young is beneficial for the child and his family.
As per the research, many individuals are ready to trade off their favourite things to make personal finance a subject in high schools, such as vacation, dating apps, night outs etc.
- Unwanted consequences
Finances are one of the primary reasons for stress in the UK. When people cannot manage their finances and get stuck in a financial swamp, they undergo a lot of stress, ultimately leading to anxiety and depression.
Everybody can relate to this stress, from a child to an adult. Lack of finances or financial instability can lead to many distress in personal life, such as divorce, bankruptcy, ill health, and depression.
In today’s times, when life has become super fast, and digitalization has taken over the world, many feel financial pressure.
This pressure is caused by a lack of financial knowledge and how to manage your finances effectively. Many financial emergencies can be avoided if the following points are taken care of:
- If people create an emergency fund and keep it aside, then financial needs can be taken care of with that money during an emergency.
It becomes complicated to borrow money or arrange money from somewhere during a medical emergency. It can be traumatizing if there is no money arrangement during your emergency.
- These days, students are starting their careers by keeping them in debt. Student loans are a good option to finance their education, but their repayment becomes problematic when there is no source of money.
The student loan must be paid back on time. Else, it can cause trouble for them. Once they are stuck in the vicious cycle of loan payments and interest, then they are left with nothing to save for their future.
Considering this situation, if they taught the basics, they could better manage their loans and monthly expenditures and save a good amount for their future. Also, if they are financially stable, it will automatically discourage them from future borrowing.
- Financial management = Happy life
More than half of the population feels that they are crippled because of the lack of financial knowledge. Teaching personal finance at the high school level will help them manage their daily finances.
If their daily financial life is sorted, it will keep them happy and sorted. There are many negatives of no financial savings, but at the same time, the positives of having financial knowledge at an early stage outweigh the negatives.
- School is the first teacher
School is the first teacher, and nobody can better explain life concepts better. Since financial education is essential, it should be taught by the school itself.
Many children have no alternatives for gaining financial knowledge apart from high school. Only a few of them have their parents as their teachers who can impart the required financial knowledge.
Hence, the school should impart financial knowledge to the children and promise them a bright future.
Because of the lack of financial knowledge, many people cannot manage their finances effectively and gradually fall out of money at a certain point.
People go bankrupt, and it becomes difficult for them to sustain themselves. To cater to the financial needs of people, many direct lenders offer loan facilities, especially in the UK. Personal loans for bad credit people are also available in the market.
These loans are provided by direct lenders only. These lenders offer online loans with minimum paperwork and legwork. The policies of these lending institutions are flexible in nature and thus one can find convenience of repaying the loan without any hassle.
Many people are looking for doorstep facility because of their bankruptcy and no financial source. Hence, it becomes even more critical to learn personal finance early to avoid any financial issues in life.