Can they apply what they learned in high school? Yes! Here is Financial Literacy: Homeschool Graduate Shares Why It Is SO Important.
Financial Literacy: Homeschool Graduate Shares Why It Is SO Important
We’re so excited to have a guest post from a homeschool graduate! Joel Hayes graduated from Indiana University of Pennsylvania in 2016 with a Sports Administration major and Business minor. He is a Certified Personal Trainer and Co-Founder at the innovative fitness organization Trio Fitness – triofitlife.com.
We know that Joel is masterful in managing his finances. We asked what advice he could share with parents planning a Financial Literacy course for their homeschool high schoolers. This is what Joel said about Financial Literacy: Why it is SO important.
I think that financial literacy is extremely important for all young adults, and getting a good foundation in high school is the way to begin.
Once you are on your own, and even in college in many cases, virtually every decision you make will have a financial consequence. If you have no idea how to handle your finances or how the world of money operates, you might run into some huge complications.
Budgeting may be one of the most important aspects of financial literacy. If you don’t know exactly how much money you’re earning compared to how much you’re spending, it’s easy to quickly accumulate debt in the hundreds or even thousands of dollars. Keeping a log of income and expenses and making sure the latter doesn’t overwhelm the former is a very basic way to be financially smart. This habit should ideally begin during the high school years (or earlier!).
Most people I know entering adulthood learn investment from the companies that hire them.
Usually this revolves around the 401K concept. Often, a company will communicate to the employee what is actually more beneficial to the company itself, rather than to the employee. Unfortunately, the employee may blindly trust that guidance simply due to a lack knowledge. If a 401K ends up being the best option, the employee will then need to decide how the money should be invested. A background in different investment options as learned in a high school financial literacy course will jumpstart the decision making process, which could result in a retirement account that grows at a significantly faster rate.
As the use of cash and checks continues to decline, “plastic” is how most purchases are made today. A solid understanding of how credit and debit cards work is extremely important to anyone, especially young adults just getting started. Sure, it’s effortless to just swipe a card and get whatever you want, but using credit cards without understanding the “fine print” can result in spending a lot more for an item due to accumulated finance charges and/or penalties. Young adults should know not only how to avoid the hazards of credit card use but also how to choose the card which offers the best perks, including cash back!
In my opinion, one of the biggest reasons Americans carry so much debt is because few schools teach children and teens how to be financially savvy.
Knowledge in this area is definitely power! If students learn how to budget, invest, and manage their financial futures, the entire trajectory of our nation’s economy could change for the better. A solid financial literacy course in high school is one important step in that direction.