Why Financial Literacy Should Be Taught in Schools

Building financial skills takes practice.

We asked our members: What new subject should be taught in schools and why? Here's one interesting response.

Entering the world of adulthood and independence has so many exciting milestones, none of which include paying taxes, setting up super funds or navigating interest rates.

As a uni student who has only recently left high school, I've come to realise just how little I know about money. I've come to the brutal realisation that Australia's youth are being done a great disservice by not receiving any independent, consistent financial education throughout our schooling.

Diving headfirst into the crash course of starting univesity, I've quickly tried to get myself up to speed with the financial jargon of the modern era to help manage my personal finances (a feat comparable to learning a new language).

I've read some financial education books, done some online learning, and have spoken to my nearest and dearest for their pearls of financial wisdom.

There are undoubtedly hundreds of great resources out there for those wishing to improve their financial literacy, but while I was researching, I still kept wishing that I didn't have to play catch up with the money world after leaving school. I felt that I was sailing the financial seas unskilled and unequipped to sail!

However, after talking to my friends who felt the same, I quickly realised that it wasn't my ignorance but the lack of financial education in our schooling system that is leaving high schoolers and young people seriously behind in the modern world of money.

Let's compare a theoretical Financial Education subject to the standard compulsory English class each high school student takes. On average, English may not be the most popular subject, but it's consistently on the timetable throughout high school, with all students graduating fluent in English.

A Financial Education subject should do just the same. It could be run throughout high school across more than one year level, and it shouldn't be just a one-day event which bombards students with an overload of information. A course integrated throughout the whole of high school would allow students to gradually collect and expand their financial literacy, and would prevent the need for a 'catch up' phase once we're out on our own after graduation.

In the same way that learning a language or new skills takes time, building financial skills requires practice and years to gradually accumulate bits and pieces of knowledge.

Giving young people the opportunity to become familiar with the world of money would provide them with a great advantage to enter adulthood with the confidence and security that they are able to manage their own money and look after themselves.

I really hope that Financial Education will become a compulsory subject in all Australian high schools. It would give all young Aussies equal and improved footing on which to confidently enter their adulthood.

Congratulations to Emily for winning our writing challenge: What new subjects should be taught at schools and why? Emily wins a $50 Mastercard e-gift card for her submission. Keep an eye on our Competitions section for any upcoming writing challenges. Also, be sure to follow this guide on how to win the writing challenge.

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