Money can be a tricky subject. It brings up a lot of emotions and stereotypes that can be uncomfortable to face and hard to break. As a result, many of us don’t start understanding how we can get the most from our money, or how things like mortgages and ISAs work, until we’re much older and can do our own research.
However, having a good understanding of financial topics can be essential for starting life in the right direction. Lessons around finances in school can be a great resource for helping students learn the skills they need in the future. Here, we explain why.
It helps them prepare for their future
A good understanding of budgeting and saving is essential for financial well-being. Whether students go on to university or to full-time employment, they’ll need to understand how to set a budget and how to avoid overspending. Giving them these tools when they’re in school means that when they graduate, they’ll already be set for success. This is more beneficial than having to learn as they go when there are so many other factors to consider.
For students going into the world of work, learning about saving money will also stand them in good stead for learning about pensions and ISAs. The earlier they start to save, the better off they’ll be further down the line.
It improves independence and reduces dependency
Issues around money can stem from a lack of knowledge about financial processes. If someone is reliant on another person to tell them how to manage their money, how much they have to spend, or even how to get help if there’s an issue, this can lead to total dependency on someone else.
Whilst there’s no shame in asking for advice, having a good relationship with money can reduce the risk of young people getting caught up in scams, as well as allow them to understand what they’re being told when they’re setting up new accounts or taking out a credit card. They won’t need to rely on others to tell them what decisions to make.
It teaches them the value of patience
Whether you’re saving up for a winter coat or something larger like a house deposit, most of us will need to save some money at some point in the future. Whilst you should never overstretch and buy something you can’t afford, having to wait a little while to get something you want can actually be beneficial. Not only does it teach patience, but it can reduce impulse buys, and it also makes it more exciting when you can finally purchase the item you’ve been waiting for.
Many students may not have experience with this. Perhaps their parents give them an allowance, or their purchases are small, or they can’t afford to buy extra items for themselves. Gaining an understanding of how saving can help them meet future goals may stop them from spending everything at once when they do finally start to earn their own income.
School is more than just the curriculum
School is a place where students can learn life skills, as well as what’s on the curriculum. By covering financial topics, teachers can empower students to understand their own money and give them a better start when they leave the classroom.
Do you teach your students how to save money? Share in the comments.
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Six Top Personal Finance Apps for Teachers
5 Smart and Savvy Ways to Save Money as a Teacher
About the Author: Anne Fleming is an accountant who is passionate about financial education for all. She is particularly interested in sharing information to help young people and those in disadvantaged situations.
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Christine Weis is a passionate educator, classroom management coach, wife, and mom of two busy boys. She enjoys teaching, writing, and creating resources for teachers.
Kids nowadays need to know how to save and other handy personal finance tips. Our early generation might not be taught about this, and we learned the hard way, however, we need to teach our kids about money. We need to help to break the cycle.
I think younger people definitely need to be savvy about money and have tips for saving. It is easy to go off course, and there are so many expenses to save for.
I completely agree with you. Im 42 already but still struggle with personal finances. I hope my sons will be more prepared for independent life in adult life.
I just read your article about teaching students how to save money and I must say, it’s fantastic! The way you explained the importance of financial literacy was really impressive and easy to understand. Thank you for sharing this valuable information!
I absolutely agree the importance of teaching children how to save money. Sometimes kids can’t or won’t learn this at home – so school is a great choice.
Yes, teaching kids how to save money is important. Learning to save helps set goals, and shows how earning interest helps money grow over time. As a parent, yI like to set an example by talking about how I save money for items I purchase.
All true. It’s never too early to start teaching your kids the importance of saving money.
Such an important thing to teach kids! Someday they’ll have to budget funds, so it’s smart to have an understanding of how things work early on.
This education does not always come from home. For this reason, it is vey good for the school to fill in this very important information.
This is such an important topic! Teaching students about saving money is a valuable life skill that will benefit them for years to come. Thank you for sharing this insightful post!