Math, English, and science are widely considered core subjects in school. Language helps us communicate, math helps us identify patterns, and science gives us a biological understanding of the world around us.
But the overall value of these subjects depends on who or where you are. Some ideologies and languages differ significantly, and not all careers require complex mathematics.
But the one thing that is universal across every nation is our reliance on money. The modern world lives and breathes finance in all shapes, sizes and values. Everyone needs money, and knowing how to manage it responsibly helps individuals find success and happiness.
On June 27, 2024, California signed a bill into law that would make financial literacy a graduation requirement for all high school students by 2030. Some Nitros may already know that GHS offers a financial literacy class to seniors taught by Mr. Hezhu Gao.
This class teaches students how to manage, save, and invest their money. It goes beyond talking about supply and demand. Instead, students learn how to invest, the types of accounts that they can open, and how to find the right lease or mortgage agreement.
Mr. Gao believes his course is highly valuable to all students. “We all work for money, and this financial literacy class will make money work for you,” he claimed.
Everyone should take this financial literacy class, because money runs the world. When students graduate from high school, they require a strong financial education to help them navigate the world independently. Current statistics show that, overall, 23% of people are in debt, and 14% of students are indebted due to student loans. Many of these individuals have not received a proper financial education on how to manage the debt they have taken on.
The implementation of financial literacy as a graduation requirement will help students make more informed decisions for their future. Even basic knowledge of money management can help young people who are more vulnerable to scams.
A study from 2011 showed that college students “who took a personal finance class while they were in high school were less likely to max out credit cards than those who took a financial education course in the community.” The earlier we start learning about finance, the better off we will be. Teens need to learn these habits before it’s too late. Otherwise, they will most likely make significant financial mistakes that jeopardize their future.
Overall, scams are more common than ever before. Those with less financial education are more susceptible to falling for these traps, such as MLMs and Ponzi schemes.
The most well-known Ponzi scheme was run by Bernie Madoff, who scammed many individuals out of millions of dollars and forever ruined their lives. Despite regulations in place to prevent scams, they still happen every day.
Scammers specifically target the young, vulnerable and uneducated. This is why we need a financial literacy class to be a graduation requirement. An uneducated individual is at risk of financial ruin. Those who receive no proper financial guidance are more careless and irresponsible with their money, because they do not understand how it works.
California is leading the way once again. This bill will help young Californians plan for their futures with more ease and confidence. An informed population is more careful and diligent. This bill will help our youth stay informed and learn to be smarter with their money.
