Investing in Your Future
Photo from iStock
Audrey Davies
According to Ramsey Solutions, 77% of Americans are in debt. This statistic shows the heinous truth: most Americans are not financially literate. High school students are constantly being prepared for adulthood, but obviously not enough in terms of understanding money. In order to graduate, Hamilton High School Students are required to take four years of English, three years of math, three years of science, three years of social studies, and two years of physical education. However, nowhere on this long list of requisites is there a personal finance class. I believe that if Hamilton High School were to require each student to take personal finance, students would be more adequately prepared to live in “the real world,” and be less likely to end up in debt.
HHS has a great business department with five knowledgeable teachers. Among the many business classes offered is personal finance. In personal finance class, students learn how to do taxes, buy a house and car, balance a checkbook, invest in the stock market, budget, acquire health and car insurance, plan for student debt, save for retirement, read/calculate a paycheck, compare job offers, and so much more. While some students may be able to learn about these topics at home from their parents, that is not the case for everyone. If you don’t have a parent with a breadth of financial knowledge, it can become quite difficult to learn how to do all of the aforementioned skills on your own. However, if every student had to take personal finance, they would learn how to do all of these things from highly qualified professionals.
According to HHS personal finance teacher Mrs. Amanda Fields, a big issue faced by 61% of Americans is not having enough savings to cover a $1,000 emergency. Having $1,000 in savings is necessary as an adult to cover unexpected expenses, such as a car repair, job loss, or medical need. Fields believes that taking personal finance could combat this issue (and many others).
In their last year of high school, seniors turn 18. With this comes many new opportunities and responsibilities- such as being able to open a credit card. New credit card owners are not always educated about how a credit card works, and often end up in debt. Over 47% of Americans have credit card debt. Taking personal finance allows teens to learn how a credit card works, which one to choose, and strategies to avoid debt.
As graduation nears, seniors have to think about what post-high school plans they would like to pursue. For many, college is the goal. Whether it is a 2 or 4 year school, college expenses can add up. Some students have a full-ride scholarship or parents willing to pay, but for many, they need to foot their own bill. Navigating FAFSA and figuring out student loans can be a tough task without any prior knowledge. Along with that, interest rates on student loans accumulate quickly, so it is important to learn the best ways to budget in order to pay off loans quicker to avoid higher interest payments. However, personal finance teaches students strategies and how to plan for and pay off student loans.
In high school, many students obtain a part time job. When that first paycheck comes in, it may be confusing for teens. Where is all of my money going? The reality is, many students don’t understand the difference between gross and net income. Taking personal finance will not only teach students how to read their paycheck stub, but teach budgeting strategies as well. When you learn how to budget in high school, it becomes much easier to budget as an adult and plan for your finances.
Mrs. Fields has three pieces of advice she would like to leave for teenagers when it comes to finance:
1. Create a budget!! Actually spend time to create a plan of where your money is going to go. This makes financial decisions so much easier and takes away a lot of stress. Budgeting is truly the foundation for any positive financial future.
2. Live within your means! Never feel intimidated by what those around you have - you have NO idea what kind of debt they are carrying to get those items.
3. Never pay interest on credit cards or loans - except the big three (home, auto, and student).
Hamilton High School should mandate taking personal finance class. It teaches students real world strategies about money, and could prevent future debt. If Hamilton does not require the class, I strongly encourage you to take the class or urge your children to.
