When one thinks about the typical high school curriculum, subjects such as English, mathematics, science and social studies often come to mind, yet financial literacy is often overlooked. Concepts such as taxes, budgeting and loans that are crucial to adult life are frequently treated as optional subjects, leaving students unprepared for real world responsibilities.
Taxes, Loans and Budgeting
One of the first financial challenges students will face after graduation is dealing with taxes. Many students work their first job without an understanding of what tax credits and deductions are, how tax brackets function or why their paycheck looks much smaller than expected. This lack of knowledge can lead to confusion and costly mistakes when filing tax returns.
Loans are another significant challenge students face. Young adults are often tasked with student loans, car loans and credit cards with little to no knowledge of interest, payment schedules or the long-term consequences of missed payments. Without the proper education, students mistakenly enter into financial agreements they do not fully understand, leading to prolonged debt.
Additionally, budgeting is another critical concept that is rarely taught as a required subject. Arranging budgets for rent, groceries, transportations costs, savings and retirement accounts are necessary realities of young adulthood that require planning and prior knowledge. Students who have never learned how to budget their expenses or to differentiate between a want and a need are very likely to experience financial stress in their early adult lives.
Looking Ahead
In today’s age in which digital payments and online banking have taken over traditional methods, oftentimes payments are set to “auto–pay” and financial decisions are made quickly, without fully understanding what one is doing. Credit scores, interest rates and financial contracts confront students right after graduating. Hence, introducing these notions earlier on in their education would allow students to gain familiarity with how to manage their finances and build early confidence.
While many schools offer finance-related elective courses, required participation is not consistent. When financial education is optional, students are unlikely to enroll, especially considering that the subject is perceived as a “boring” one. Treating financial literacy as a requirement in high schools across the nation would ensure that all students receive the necessary knowledge and skills that set them up for future success.
Fortunately, at Bridgewater-Raritan High School and in New Jersey, financial literacy is a graduation requirement. Bridgewater-Raritan High School offers electives such as Financial Planning, Introduction to Business, and Today’s Living that prepare students for financial life beyond high school.
Sophomore Varnika Kirthi reflected on her confidence about facing future financial decisions.
“I feel only partially prepared to manage my finances after high school. While I understand basic concepts like saving and spending, I don’t have formal education on taxes, credit, loans or long-term financial planning. Most of what I know comes from conversations with family. Without structured financial education, many students are expected to make serious financial decisions without fully understanding the consequences,” Kirthi explained. “Learning about budgeting skills would help me manage expenses, avoid debt, and plan for important things like college or savings,” she added.
Evidently, it is clear that financial literacy education provides students with the skills they will rely on for the rest of their lives, yet too many students are expected to navigate young adulthood through trial and error. Students are better equipped to avoid financial difficulties and make wise decisions when they learn how to manage their finances, understand debt and make future plans.
If schools are truly passionate about preparing students for post-graduate life, financial literacy must be treated not as an elective, but as a requirement for graduation in all states across the nation.
