Maria Nadar
July 19, 2022 0 Comment


We all know that investing and saving is essential for our future. As students transition into adulthood, they face a variety of financial choices that can have a significant impact on their future. For this reason, school-going students must understand the basics of investment and saving, and this will equip them to make sound financial decisions that can help them secure a comfortable future.

There are many ways to promote financial literacy among students. For example, schools could offer classes on personal finance or partner with local banks or credit unions to offer financial education programs. Furthermore, financial education could be integrated into existing subjects such as math or social studies. By exposing students to the basics of investment and saving at an early age, we can help them build a foundation for a bright financial future. 

Let’s take a look at some of the reasons why teaching students about investing and saving is essential.

Prepares them to avoid harmful financial mistakes.

As any adult knows, managing finances is a vital life skill. Unfortunately, many young people today do not receive adequate instruction on how to handle money. As a result, they often make financial mistakes that can have long-lasting consequences. For example, failing to pay credit card bills on time can damage one’s credit score, making it difficult to qualify for loans or other forms of credit in the future. Similarly, overdrawing one’s checking account can result in costly fees that can add up over time. Encouraging financial literacy among young people is crucial to helping them prepare for the future. Teaching kids and teens about budgeting, saving, and investing at an early age can help them avoid making common financial mistakes. For example, kids can be taught to follow the 50-20-30 (or 50-30-20) budget rule where according to the rule, you should spend up to 50% of income on necessities and obligations that you must have to fulfill. The remaining half should be divided as follows: 20% for savings, and 30% for anything else you desire.

With a solid foundation in financial literacy, young people will be better equipped to make sound financial decisions that can lead to a lifetime of financial stability and success.

Helps in understanding the implications of college loans

With the increasing cost of college, students are relying on loans to cover the cost of tuition for their higher education. Moreover, when high school seniors agree to take out loans for an expensive college, they may be oblivious of what they are signing up for. Students who are not financially literate may not understand how student loans work or what other options are available to them. Financial education taught through classes in school and by parents helps students to fully understand how their loans work, including how interest accrues and the dangers of defaulting on loans. This education will allow students to prepare for repaying their loans as adults.

It helps boost the economy

Financial literacy is critical because it provides a solid understanding of the impact that individual financial decisions have on the economy. Kids who learn about managing finances from early on will be better prepared to make decisions that promote a healthy economy. Financial literacy also provides individuals with the knowledge they need to navigate finances in times of emergency, such as during an economic downturn. While the future cannot be predicted, those who are financially literate will be better prepared to weather any storm.

Instills financial responsibility in kids

Giving back to the community is an important value to instill in young people. It creates more opportunities for them to give back to those in need by teaching them the value of money and how to spend wisely. There are a number of ways to teach young people about financial responsibility. For example, you can have them research different investment opportunities and explain what they would do with the money. They will be better able to invest back into their communities as a result of solid financial education.


Financial literacy must begin at an early age. When kids are taught about loans and mortgages in school, they gain a better understanding of these financial contracts. This allows them to make wiser decisions when it comes to their own finances in the future. In addition, by learning about financial literacy early on, kids are more likely to develop good habits that will lead to financial stability later in life. Therefore, financial literacy must be made a priority in schools. With the right education, kids can grow up to be financially responsible adults.