Financial Literacy for Beginners: Why Every High Schooler Needs Money Skills, article By Kaveeshan Gnanarajah

 Financial Literacy for Beginners: Why Every High Schooler Needs Money Skills

If you’re like most teens in America, you’ll probably swipe a debit or credit card before you even graduate high school. But here’s the thing, a lot of people have no clue how those cards actually work, what interest really means, or why your credit score matters. Honestly, it’s kind of wild how few schools actually teach this stuff. Only 23 states make you take a financial literacy class before you graduate, and more than half of Gen Z say they feel totally unprepared to manage their own money. You might have a bank account or use Venmo before you’ve ever really learned about saving, budgeting, or borrowing. The world of money is getting more complicated all the time: credit card offers are everywhere, “Buy Now, Pay Later” apps make it easy to rack up debt, and there are scams and shady deals targeting young people on every corner of the internet. If you don’t have a good foundation, it’s way too easy to end up with bad habits, debt, or just feeling stressed out about money for years to come.

So, what can you actually do to get ready? Start with the basics, figure out the difference between debit and credit cards, learn how interest works (it’s a bigger deal than you might think), and remember that every  move you make probably has some kind of consequence. Try making a simple budget to track what’s coming in and what you’re spending, even if it’s just your allowance or some cash from a part-time job. Trust me, the people who get good at budgeting in high school are way less likely to get buried in debt later. Watch out for scams too, like, for example, if something sounds too good to be true, it probably is. There are phishing emails, sketchy “investment” opportunities, and all kinds of lenders out there looking to take advantage of you before you’ve even figured out how it all works. And seriously, never be afraid to ask questions. If you’re thinking about what actually happens when you swipe your card, learn the basics. These money skills aren’t optional anymore; they’re the stuff you’ll use every day. The sooner you start, the more chill your future will be.

By: Kaveeshan Gnanarajah

Sources:

“20 Things to Teach Your Child about Finances.” Eastspring.com, 2021, www.eastspring.com/money-parenting/20-things-to-teach-your-child-about-finances.