Up to 41% of high school students say they do not learn financial literacy in school. With higher education costs looming and many teenagers transitioning into financial independence, it is critical to teach students about bills and budgeting, credit and taxes. Financial education is crucial in today’s world especially when people on average take eighteen and a half years to pay off their student loans and many cannot afford to save for emergencies. Financial education can be especially useful to young adults as they begin making career and financial decisions that will impact the rest of their lives. Many of young adults today turn to social media in order to get financial knowledge. It would benefit students for financial education to be more accessible in schools to avoid misinformation and financial mistakes.
Financial Education & Credit
Students who undergo financial education are more likely to be financially savvy and save more. They may be more knowledgeable when it comes to saving money on education, allowing them to avoid debt and improve their credit usage. Many of those who are not financially literate are likely to end up with poor credit which can lead to a large amount of problems going forward. Low credit can affect your ability to borrow money, get a mortgage, get a car, and even rent. Students today need to know more about credit and how it can affect their future. School administration can be a huge help to students’ success by educating them on credit and the basics of how to responsibly spend.
Financial Literacy Leads to Financial Wellness
Financial wellness can look like an ability to take care of one’s bills and debts, and feel secure about their financial situation. Financial literacy can lead to financial wellness, helping students build confidence about their futures. Mental health and stability are so integral to one’s financial wellbeing and it is important for students to develop this from a young age. Financial literacy can lead to an improvement in student mental health by empowering students to feel more confident, secure, and knowledgeable about their finances. Financial wellness oftentimes can be correlated with better mental health which, in turn, leads to greater employee productivity and more satisfied and loyal employees. Financial literacy and financial education can help students through the transition to higher education and the workforce, creating a more successful and competent generation.
Positives of Pre-existing Financial Education
Some high schools already require students to take a financial literacy test before transitioning to higher education. Students who score well on these tests tend to outearn those that don’t and can start to make larger financial decisions. In recent news, Florida has decided to implement a financial literacy course requirement for all high schoolers. This can contribute to many students’ individual success across the state. It may even help some students find or narrow their future career paths. Students who receive a financial education are less likely to drop out and are able to make more sound financial decisions throughout their lives. With higher education enrollment dropping, it is imperative to incorporate financial education into K-12 institutions to support student success and wellbeing long after graduation.
How Neolth Can Help
Neolth improves student mental health by empowering students to prioritize their mental health and wellbeing. Taking care of mental and emotional needs is crucial for academic success as well as overall wellbeing. With our new Financial Wellness content, students can simultaneously learn about topics like credit, homebuying, and debt while caring for their mental health. Our library of evidence-based relaxation practices coupled with Expert content on a variety of important topics empower students to take ownership of all facets of their health and wellbeing.
About the Author:
Mike Friala (he/him) is a senior at SUNY New Paltz studying Economics. He joined Neolth primarily to explore his own mental health, hone in on his writing, and to write about the importance of the overlap of financial wellness and emotional and mental well-being. He’s volunteered abroad in South and Central America and tutors students with disabilities, which has pushed him to find and do work that can help others. He feels that Neolth is a platform that does good work spreading awareness on mental illness and explores ways to positively help those who are suffering.