Gaining knowledge about finances is one of the most essential things. From an early stage, students should be taught about finances, which can be helpful for them.
Financial literacy is one of the most important things to be taught in school, but no one pays any attention to it. From an early age, if a student learns about finances, then in their adulthood, they will be able to manage their money in a much better way. In most cases, it is seen that, right after starting to earn money, an adult only gets engaged with spending. They just want to satisfy their soul by spending money on their desired products. In many cases, they waste money by buying unnecessary stuff. If they knew about financing, they would get an understanding of how to spend money and how to manage it effortlessly. Right now, it is coming to be seen that lack of financial knowledge is leading all to a problematic scenario. That is why, from the age of 10 to 14, students should start learning about finances. When it comes to teaching finances, there are a few things that can’t be neglected. Let’s explore the major topics that should be taught to a student-
- Need to earn money:
Money is the only thing that can give you security in life. It offers many choices to improve your life, which are not possible in any other way. From the very beginning, students should understand why it is important to earn money in their lives. Knowing the value of money can be helpful in many ways. If you learn the value of it, only then will you be able to understand that with the help of money, you will get the opportunity to build a secure life. Once the students learn about it, they will be more focused on building their careers. And it will help them to become an independent individual. Therefore, it is one of the biggest reasons why one should be taught finances.
- Boost the interest in earning:
In the beginning, one should try to make the students interested in earning money. If they do not feel the need for money in their life, then they will never have the urge to build their career. This whole process should get started at an early age. Only then, over time, will they get to understand why it is so important in life. If they do not get to know the importance of money and how it can help them in their life, they will never be interested in earning money. For that reason, it is considered an important part of teaching students about finances.
- Saving money:
A student should learn the necessity of saving money. Earning only is not the only important factor. Along with earning, one should also be taught the importance of saving. If you just earn and spend all the money, then at some point, you will face financial instability. Then, there will be no benefit of earning money. Saving money is important because no one knows what will happen in the coming days. There might be incidents in the next month where you need to spend some money, which is not negligible. So, if you do not have any savings, then you will not be able to fulfil them. That is why students should be taught why it is essential to save money in a bank account. Along with that, saving money would also lead one to earn interest, which is another huge perk. Thus, learning about saving is quite essential.
- How to write a CV:
To apply for any job, you must give a curriculum vitae or CV. It is the only way a company will get to know about your skills and education. A CV plays a huge role in every job application. That is why a student must know why a CV is important and how to create an interesting CV. Each day all the companies are receiving many job applications. Thus, if one doesn’t know the key to an interesting and bold CV, then they will not get the chance to stand out in this huge competition. It can be said that it is a curriculum vitae that secures a job application. So, if they are not taught this important thing, then they will never be able to grab the attention of employers. Teaching it in school is one of the most important things right now for every student.
- How to apply for a dream job:
A CV is not the only thing that one needs to send to a company. Along with this, one needs a cover letter. A cover letter is an important element that helps to lead employers to a CV. That is why an interesting cover letter is required at the time of a job application. If they are taught how to write a cover letter and how to send a job application, then it would be really helpful for all the applicants. It can help them to get prepared for a job interview in a much better way. For that reason, it is considered an important element of a job application.
- Career choices:
In every individual’s life, career choice plays a significant role. It is something that one needs to do for the rest of their life. And it is going to be the source of income on what a lot of things will be dependent. For that reason, career choice is one of the most essential things. If you are a student who is going to start their career very soon, then you have to pay more attention on what career you are going to choose. You can prepare yourself for a certain job role based on the salary, your passion, or interest. You have to consider these at the time of choosing a career. If you evaluate all these at the time of selecting a certain path, only then will you get the opportunity to grab the ideal job for yourself. It is a huge part of your financial situation. So, ignoring it will not be a good option for you.
- Budget:
When it comes to spending, budget is an important that can be truly helpful. Kids should be taught budgets, as it helps to manage finances in a much better way. If they learn the concept of budgeting, then they will be able to save more money. In most cases, people do not focus on how much money they are spending in a month and end up with no savings at the end. If you are taught about budget early in your life, then you will get to understand it in a much better way. Fixing a budget for monthly allowances and sticking to it can be really impactful in saving money. This way, you will be able to keep track of what you have spent for which item. Keeping track of your daily expenses will become much easier. Therefore, learning about budgeting will be helpful in saving money even from smaller salaries. Thus, it is an essential thing that cannot be forgotten.
- Thoughtful spending:
Thoughtful spending is another thing that a kid should be taught. When you are spending your hard earned money, you should not spend it on some unnecessary things. You must know the value of money, and only then will you be able to do smart spending. It is not like buying cheap things to spend money. If you understand where to spend and how much money to spend, then you will be able to save more money. Nowadays, a thing has been quite common that by watching your peer group, you might also want to buy the same thing. If you get into this trap, then you will end up spending all your money. That is why you need to understand that falling for this isn’t a very good choice. You need to pay a little more attention and be smarter before spending even a single penny. All you need to do is save yourself from unnecessary spending. If you can have control over it, only then will you get to save your money. It is something that a kid should be taught in their life.
- Income tax:
Everyone wishes for a high-paying job, but the little they know that according to your income you need to pay a certain amount of tax. Income tax is mandatory thing for most countries, and you cannot avoid that. Most of the students do not have much knowledge regarding income tax. When they are not taught about income taxes, they will not be able to understand the rules and regulations properly. Not knowing about the taxes can be a huge problem in the future. Right now, it is one of the most important things to make students learn about taxes. If they get to know about what tax is and how much you need to pay in your career, it will be much easier for them. For that reason, teaching kids about taxes is an important thing.
- Different methods of payment:
Most of the kids make their payments through cash only. They only know that they need to have a bank account where they can save their money and make payments with cash. However, there are many other ways of payment. If you introduce them to a payment method through a credit card, then it can be really helpful. It is the only way that can help them boost their CIBIL score. It plays a huge role when you are making big purchases like a house or a car. If you have a higher score, then the whole process of purchasing will be much easier. Knowing about the different ways of making payments is really useful. Every student should learn about this as it can help them to manage their finances in a much hassle-free way.
- Money borrowing:
Borrowing is another integral part of finances. A student should know what the need of borrowing is, when one can borrow money, and how to repay it. Borrowing money isn’t something bad until you are doing it for a good cause. If you borrow money, then you must learn how you are going to repay them. If you know the criteria, then it can get a little tricky. That is why making them learn about this is another important thing. It can be helpful in many ways.
- Rent or buy a house:
Everyone has a dream of buying a house once in their lifetime. However, first, you need to make them learn about what it would cost to buy a house in a particular area. If they are getting a house loan, then how much they need to pay, including interest and tax. If they do not know these, then they will not be able to handle the finances. On the other hand, if they are thinking about renting a house, then how much they need to pay every month and what a rental contract should be. These are some important parts of finances. If you do not know them, then you will not be able to make purchases and manage your finances. Once they get to learn about all these, they will get the chance to make the right choices in their life.
- Loan:
Various kinds of loans are available for the eligible individual. It is important to teach the students about different types of loans and their criteria. When they take a loan, how much they need to pay extra for interest and tax are other important elements. Teaching them about all these at an early stage can be truly helpful. This can make them understand how a loan works and how to handle it. If they do not know about them and take a loan, then they will get into trouble in the future. So, making them learn about these would be truly helpful in many ways.
- Loan repayments:
When an individual takes a loan, they need to do repayment of it, too. A student should learn what repayments are, when they should be done, and how they should be done. It is the only way a student would get the chance to learn about all these. In addition to that, they also need to be taught what they need to do when they cannot repay their loan. These are some of the most important things in finances. If they do not know them, then they will never be able to learn about different sides of finances. For that reason, one should be taught all these at an early stage in their life.
- Investments and stock market:
The stock market is a huge industry that offers resources to earn money. Right now, it is coming to seems that the stock market is becoming even huger with each passing day. That is why they should learn about this particular industry in a much better way. Once they accumulate the right knowledge and learn the strategies, then they will get the chance to earn more money without any hassle. Offering them the essential knowledge and information can be truly helpful in many ways. That is why, ever student should be taught about stock market and its investments. Once they learn about it, earning money would be much easier.
- Mortgages:
Mortgages are a huge part of property finance. At the time of buying any property, if they know about mortgages, then you will be able to understand how much they need to save for the deposit of the property. Learning about the basics of property finance can be immensely helpful in managing all finances. This can assist them to become better property owner and handle their finance in a hassle-free way. It is one of the most important things that a student should be taught.
- Buying a house:
Buying a house can be one of the biggest purchases of anyone’s life. If you can, then teach your kids all the essential information about purchasing a property like a house. Discuss the process of buying a house and how they can go through a seamless procedure. Taking this initiative will help them to have a clear idea of how to make the payments while purchasing a house, what legal formalities they need to take care of, and how much tax they need to pay. If a kid learns about these from an early stage of their life, then they will be able to understand it in a much better way. This can make their life much simpler. Therefore, taking this particular initiative is considered one of the most essential things.
- Long-term investments:
A kid should be taught about long-term investments. Having a single source of income is not sufficient enough at this present scenario. Everyone needs to make some sort of investment to have a secure future. Long-term investment can be one of the reliable sources of that. If a student gets to learn about the long-term investments in their life, then they will be able to take the initiative much earlier. If you start investing for long-term investment early in your life, then your chances of getting higher returns will be increased. That is why a student should be taught about long-term investments. It can be really helpful for them to grow in their life much rapidly.
- Shares:
Owning shares of different companies can be a great way to earn money. It is a huge source of earning money. If the students are taught about shares, then they will not be able to learn about these, or it will take more time to learn about them. If students get to know about these early in their life, then they will take these initiative as soon as they start earning money. Teaching about shares is one of the most important things right now. Learning about share marketing can be the most fruitful thing right now. Thus, taking this initiative is essential for everyone.
- Fundamentals of business:
Knowing the fundamentals of business is another important thing. Everyone doesn’t need to be an employee, many want to become an employer too. And it is really important to make one learn about the fundamentals of a business. To start a business and successfully run it, one needs to learn how to start the procedure and the important parts of it. At the time of doing business, it is essential to learn how to manage finances and follow all the guidelines. If they get to learn about these, then they will get the chance to get more fruitful results through a business. Learning about these beforehand can be really helpful in many scenarios. That is why it is considered one of the most important things for every student.
- Profit and loss:
While doing any kind of business, one should know profit and loss. It is an integral part of a business. As an entrepreneur, you cannot completely rely on an accountant to understand profit and loss. This way, you will not be able to continue the business for a long time. For that reason, it is essential to know about profit and loss to manage a business in a much hassle-free way. You need to understand how much profit you are making in a year. Only then will you get to figure out how to boost sales even more. If you do not have a clear knowledge of profit and loss, then you will not get the chance to handle these efficiently. Thus, it is another important thing that a student needs to be taught.
- Insurance:
Insurance is another important of finances. When students are taught about finances, they need to be taught about insurance also. With the help of this, they will get to know what types of insurance are out there, what their benefits are, and how to work with them. It is the insurance that helps us to protect our possessions. If they do not get enough knowledge of it, then they will be able to take good care of their belongings in the most hassle-free way. So, learning about it is immensely important.
One will be able to manage their finances in adulthood with the right knowledge. Teaching the students about finances from an early age can be truly helpful in every aspect.
