Write an essay (150 - 300 words) about this topic:
Financial education should be a mandatory component of the school program. To what extent do you agree or disagree with this statement?
More and more young adults in our country are heavily indebted. Thus, it is considered by some that it should be mandatory to educate school children about the administration of money. In my opinion, people should not leave school without a sound knowledge of financial management.
To begin with, a country’s development is strongly dependent upon the purchasing capacity of its inhabitants. That is to say, people who are in debt or financially vulnerable, would not be able to spend freely or invest, for example, in a new house, thus hindering the economic growth of the country. As a consequence, the rate of inflation would rise and people would be able to afford even less, which could ultimately result in the collapse of the entire economy. A good example of this vicious circle can be seen in countries such as Argentina, where people have to buy household items in the black market because they cannot afford to buy them in regular stores due to skyrocketing prices. Therefore, it is of utmost importance to teach children early about money management.
Another point to consider is the low standard of living that people have when they mismanage their finances. Individuals who are constantly short of money could eventually end up being socially isolated and unhappy, because they couldn’t afford to participate in leisure activities, such as going to the cinema with a friend, resulting in their withdrawal from social life. However, this could be avoided with ease by offering courses in money management.
In conclusion, I strongly believe that school children should be taught how to manage their finances to prevent social isolation later in their life as well as to maintain the economic force of their country.
The obvious fact is that the financial aspects are a major part of everyday life, as adults and even as a young individual. Each of us must make financial decisions regarding entertainment, health, education and more. The question is whether to start with financial education as part of the curriculum or to postpone the later stage of life.
To begin with, it is possible to understand the value of money, how the economic system works and explain financial news and its meaning as a virtue. Without this virtue, an individual, even a young person, can be hurt to some degree. For example, a child who does not understand the concept of money can be more difficult than just choosing a gift among the more possible ones.
In addition, many adults are lacking in financial analysis capabilities. Very often, the reason may be a lack of sound or insecure platform when it comes to financial terms and concepts. Starting from a young age, building a solid foundation can very well prevent such situations.
Naturally, financial education necessarily involves quantifying and setting prices and values for services and goods. It can easily turn young people into skeptical people who lack emotion. Moreover, the tendency to self-focus and ego can increase when people start measuring everything from the perspective of making a profit.
In short, financial education has both advantages and disadvantages. In my opinion, the advantages are more meaningful than the disadvantages, making financial education an encouraging component of the curriculum. Disadvantages should be considered a certain price that young people pay due to the characteristics of the world in which we live.