The Importance of Financial Literacy

None of the programs during my educational experiences before college included financial literacy; I had to move to America to learn that things such as budgeting and spending plans are discussed in schools. Back in Kosovo I learned about money’s value and things such as budgeting out of “spontaneity”, and more commonly through the examples of my hardworking parents and grandparents.


But when it comes to managing money, there is not a lot that you need to do there anyway; you know exactly where your hard-earned money will go throughout the month, and if you are able to save a tiny amount of your salary you will feel very lucky. On the other hand, activities such as financial planning are not very complex in my home country, but I see how important and detailed they are in the lifestyles of American people.

My one-month experience in America has already been such an eye-opener to the incredible opportunities that come with financial knowledge. I can see how this information can truly set up people for success when it comes to future planning and more. I am currently learning about financial literacy in college, and I am so impressed by these lessons just one month into the course. I have been able to discuss the different aspects of financial education with my peers as well, especially when we talk about our professional aspirations.


 One obvious thing for me in all of this is how much I have been missing out on; if I were introduced to financial education at a younger age, I know I would have taken different financial approaches in different stages of my life. Knowing that habits are a major characteristic of an individual’s financial decision-making, constant information on the subject from an early age would have given better shape to my financial habits. That is why I agree that financial literacy should be part of school curriculums as early on as possible. “To be well-equipped, students must understand how to spend less than they earn and how to budget. They need to know about interest, saving, investing, credit and debt, taxes, and many more aspects of money management.” (Cruse, 2019, p.42)
For example, thanks to my financial literacy course I am now able to notice patterns and specific elements in my own financial decision-making, so I am much more aware about things such as spending and saving during my higher education journey. I have even created my first ever monthly budgeting plan, which has been helping me immensely. Therefore, I believe that students should be learning the above-mentioned financial skills in schools because that will result in smooth transitions in all educational and professional stages of their lives.

When I think about financial education, I think about security and freedom. The uncertainties of today’s world make smart financial planning a must, and we will be able to enjoy our experiences and achieve our goals only when we are careful with the very influential factor in our lives that is money.

References

Cruse, N. (2004). Money matters. Trend lines: Teaching financial literacy. Retrieved from: https://www.nais.org/magazine/independent-school/summer-2019/trend-lines-teaching-financial-literacy/