Why It's Important to Teach Your Students Financial Literacy
The value of financial literacy for college students
Can you imagine that almost half of Americans are sure they will not have enough funds for a comfortable retirement? The credit card debts have significantly increased and recently reached its highest point, while nearly 40% of people cannot afford to spend an extra $400 in case of an emergency. Based on such unpromising statistics, there is no surprise that almost 75% of all Americans have no idea about financial literacy, which provides us with knowledge on how to manage our finances efficiently. Without this skill, many of our financial decisions may fail or lead to increasing the percentage in previous statistics.
Financial literacy is valuable for several reasons: making plans for the future, meeting financial goals, getting real profit out of your incomes, stop surviving and start living, and successfully going through financial hardships. After the recession many Americans are still in the dark regarding managing their finances, not understanding interest rates, loan terms, and credit card debts, now they have to meet new difficulties in the face of COVID-19 pandemic. To help prevent economic crises (at least, our personal) and invest in the future, students have to learn the basics of financial literacy in college.
How students can benefit from studying financial literacy
Students face financial challenges from the first day in college: paying off the loan, spending money on accommodation and products, and paying for writing papers when you don`t have time. If you can save with a writing service, for example, using a speedypaper discount code, all other problems should be managed independently. The financial literacy is an essential discipline that should be taught in schools and colleges so that students can:
1. Stay out of debt
If you have no experience with credit cards, it may seem like free money. Credit cards are convenient to pay in supermarkets, in shops and online for using services (for example, pay a writing service based on the request «Can you write my paper for cheap?»). But despite all the benefits, there are certain limits that need to be paid off. Many students pay the monthly minimum and feel safe, but it doesn`t make the credit score go down. Besides, credit cards tend to have huge interest rates that make the balance grow until this monthly minimum becomes unreal to afford. According to statistics, around one-fifth of college students have $7K credit card balance if not more so receiving a proper education to control this issue is essential;
2. Get the nature of a student loan
Getting a loan, we try to forget about it until the moment we graduate (if not longer) and spend money on entertainment and college-related services (like writing services performed on the request «Please, write me an essay»). The worst thing is that many students don`t understand how it all works and skipping the payments they approach bankruptcy step by step (but even bankruptcy won`t save you from paying it all off eventually). You need to understand all pros and cons before taking the loan and do it responsibly;
3. Save money
Many different sources recommend having a fund for a rainy day that can cover a minimum of six months of rent and living expenses. As the majority of Americans can`t afford to save and live from paycheck to paycheck, it`s obvious that they don`t have such funds. Getting the right financial education in college will allow you to manage your money properly to be able not only to pay off your loans but also to save money for emergency situations just with a fixed percentage from each paycheck stored in a separate account.