Students learn the fundamentals of money management in financial literacy classes, including budgeting, saving, paying off debt, investing, and more.
In this article, we look at the best financial literacy programs for high school students.
This information offers the groundwork for kids to establish sound financial practices at a young age and steer clear of many blunders that result in ongoing financial difficulties.
We have witnessed as a nation what may happen when there is no financial literacy curriculum. Every day, millions of Americans struggle financially.
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At least 78% of people rely on credit cards frequently to make ends meet because they are living paycheck to paycheck. So, it should come as no surprise that 71% of individuals are in debt and believe it to be an inevitable part of life.
In addition, many Americans are discovering that their personal student loan debt, high auto payments, and lack of financial preparation prevent them from being able to purchase homes, invest for retirement, or save for their children’s education expenses. They lack hope and are heavily in debt.
Nevertheless, things don’t have to be that way! If financial literacy had been taught in schools, many of the financial issues that Americans currently face could have been prevented. We believe that more schools ought to include financial literacy classes in their curricula.
What are the benefits of studying money principles while a student as opposed to an adult? Students that enroll in a financial literacy course early will have the most opportunity to put their knowledge to use.
Although still in high school, many students who study financial literacy put what they learn into practice straight away.
For instance, a study done by a research team in 2016 found that almost two out of three high school students who had completed a personal finance course said they were already making an average of $3,000 a year.
Most of the same group stated that they had the practice of setting monthly financial goals. And 20% already had a car they had paid for!
The fundamentals of personal finance ought to be covered in high schools across the world alongside other fundamentals like reading and math.
What Do Financial Literacy Programs Cover?
It’s crucial to educate the next generation about financial responsibility. We want the debt numbers for our children to decline! So how do we make that happen, realistically speaking?
Fortunately, personal finance is 80% action and 20% information. Hence, while teaching kids about money is important, providing them with a concrete plan to handle their personal finances is much more crucial.
The Five Foundations are simply that—a straightforward strategy created to support students in managing their money with assurance. This is how it goes:
- The First Foundation: Save aside $500 in case of emergencies.
Students should initially put money aside for unexpected expenses. If students don’t have any money saved aside, financial crises like a misplaced phone or a broken tire could cause them to go into debt. Yet if they have an emergency fund in place, major issues only become small annoyances.
- The second pillar is to pay off debt and keep it off.
Debt is ridiculous. Too many people are burdened by this enormous financial burden. They are hollow promises, including cash-back incentives, airline miles, low monthly installments, and no down payment. In a financial literacy program, they show students how debt can imprison them and how to escape it as soon as possible.
- The third tenet is to purchase your vehicle with cash.
In just five years, brand-new cars are only worth 40% of their original cost. It is not a wise investment to make the minimum payment plus interest on something that is depreciating. The greatest option for a student is to acquire a reliable secondhand car with cash.
It is doable! That requires preparation and patience, but it’s far preferable to paying an average of $563 per month for the “new” car they purchased a year ago. Maybe not as fresh smelling as it once was.
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- The fourth pillar is to pay cash for your education.
The American student loan situation has gotten out of hand. The total amount of unpaid student loan debt in our country is $1.56 trillion. Trillion! Grads today put off getting married and don’t put money down for retirement.
However, because of the constraints of their past—debt—they are even unable to leave their parent’s homes. Contrarily, those who pay cash for college are free to enter the next phase of their lives.
- The fifth pillar is to accumulate money and give.
Now for the exciting part! Students who are rigorous about saving money and living debt-free can truly live and contribute unlike anybody else. This involves some compound interest as well as time and patience. Just consider how your life will change once you stop worrying about money.
They can take pleasure in their wealth and spend their time considering ways to help others rather than being distracted by financial stress and fear.
Financial Literacy Programs for High School Students
Below are some of the most reliable financial literacy programs for high school students who want to be good at managing their finances.
OppU
OppU offers information, tools, and expertise to enable you to make wise financial decisions daily. With enjoyable, useful, and simple-to-understand courses, you can master the fundamentals of financial literacy, from setting up an emergency fund to paying off debt.
Most of all, the OppU course content is free and aligns with national standards for financial education. Find more information here.
Everfi
Students gain knowledge of how financial institutions function, how to use them, the various products they offer, and how to manage their own account portfolio in this financial literacy lesson for high school students. Find more information here.
Banzai
An interactive content platform that has won awards, Banzai teaches real-world finance. See why Banzai is used by more than 100,000 instructors in more than 50% of American schools. Find more information here.
