High school graduates and their parents pay close attention to the graduation criteria of schools, but do they have enough knowledge about personal finance?
Do schools teach students how to manage money? Usually not. It is shocking how little students know about personal money, but once they gain financial knowledge, there’s no stopping them! Now, the question arises, what kind of knowledge about money should high school students have before they graduate?
About 75% of youngsters do not feel comfortable discussing money matters, while the remaining quarter is keen on learning about financial issues. Parents should encourage teenagers to discuss financial matters and get them into the habit of regularly creating a budget. The budget of a youngster would mainly comprise food, clothing, and toiletries.
Teenagers will make financial mistakes as they learn the ropes of responsible money management. Parents and other adults in a teen’s life should have open conversations about money and help them learn good financial habits. Teens can improve their financial literacy by learning sound budgeting and saving techniques.
Successful people have many qualities in common, but one of the most important is mastery over one’s financial health. Therefore, it’s crucial that we keep tabs on teens, assess their level of financial literacy, and supplement their education as necessary. Below are the five most important aspects of personal finance that every high school student should be familiar with before graduating.
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Budgeting
Teens need to be able to make a budget and stick to it before they graduate. Teens should grow up financially sensible to have a firm grasp on income, spending, and savings to avoid falling into debt and paying exorbitant interest rates at a later stage in life.
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Bank Accounts
Teens should be aware of how bank accounts function and the costs that may be incurred, including ATM fees and account fees and the circumstances under which they are incurred (minimum balance levels, activity fees, etc.). Most of today’s youth choose to conduct their lives online, making it necessary to seek free basic online Digital Wallets. Even if the use of checks becomes extinct in the future, it’s still important to demonstrate and explain the process. Explain how debit cards are used, how Digital Accounts work, and the need to keep all account information private.
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Savings
Teens need to learn the value of saving money. Putting up money for unexpected costs is just as important as saving for a vehicle, a vacation, or any other large purchase (repairs, healthcare, etc.). Your teenage child must still be aware of the cost of living, even if you are paying all their expenses. It is never too early! The intrinsic worth of money is a wonderful place to begin this conversation. Then, you may tell them that saving is the biggest purchase they’ll ever make and that the sooner they start saving, like saving Pocket Money Online, the better off they’ll be in the long run.
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Credit Scores
Teens should be aware of the potential repercussions of neglecting their financial well-being. Don’t forget to mention how things like late payments and carrying a lot of debt may hurt a person’s credit. Credit scores are extremely vital for getting approved for short-term and long-term loans and credit card applications. If as a teenager, you start building a good credit score, the chances of maintaining it as you grow older are higher.
