Introduction
Financial literacy is defined as “the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing” (Investopedia). With so much emphasis placed on money in our society, it is no wonder that many people believe that teaching financial literacy in schools is a good idea. However, there are several reasons why this may not be the best course of action.
Reasons Why Financial Literacy Is Not an Appropriate Subject for Schools to Teach
One of the main reasons why financial literacy is not an appropriate subject for schools to teach is because it is not part of the core curriculum. Subjects such as math, science, history, and language arts are the primary focus of schools, and adding another subject to the mix would only add to the already heavy workload of teachers and students. According to a study conducted by the National Center for Education Statistics, the average high school student takes seven courses per semester (NCES), and adding financial literacy to the curriculum would only increase this number.
Another reason why financial literacy should not be taught in schools is because many young people may not have the maturity to understand the complexities of personal finance. It is commonly accepted that financial literacy requires a certain level of maturity, and introducing this subject to students who are not ready to handle it could lead to confusion or even financial disaster. As stated by financial planner and author Laura Adams, “It’s important that we think about what age is most appropriate to start talking to kids about money…it’s really hard to know when they’re ready to absorb the information” (Forbes).
How Teaching Financial Literacy in Schools Could Lead to Negative Consequences
In addition to being outside of the core curriculum and potentially unsuitable for younger students, teaching financial literacy in schools could also lead to some negative consequences. One of these is the false sense of security that students may develop due to their inability to predict future economic trends. While students may learn the basics of budgeting and investing in school, they may not be prepared for unexpected changes in the economy that could have a significant impact on their finances. As noted by financial adviser and author David Bach, “No one can predict the future…you need to prepare yourself for the possibility that things will not always go as you plan” (CNBC).
Furthermore, teaching financial literacy in schools could also be a waste of time and resources, since most students will not use the information they learn in school. A survey conducted by the National Financial Educators Council found that only 23% of teens reported using the financial concepts they learned in school in their daily lives (NFEC). This indicates that most students do not find the information taught in school to be applicable to their day-to-day lives, making it a waste of time and resources.
Finally, teaching financial literacy in schools could lead to competition among students over money issues, which can create tension in the classroom. According to a study conducted by the University of Michigan, students who are exposed to financial literacy education are more likely to compare themselves to their peers in terms of wealth and spending habits, which can lead to feelings of envy and resentment (ScienceDirect). This type of competition is not conducive to a healthy learning environment and should be avoided.
Conclusion
In conclusion, teaching financial literacy in schools is not beneficial for a variety of reasons. First, it is not part of the core curriculum and schools are already overloaded with material. Second, many young people may not have the maturity to understand the complexities of personal finance. Third, teaching financial literacy in schools could lead to false security due to difficulty in predicting future economic trends, a waste of time and resources, and competition among students over money issues. For these reasons, it is best to avoid teaching financial literacy in schools.
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