Financial literacy is an essential life skill that is often overlooked in the traditional high school curriculum. However, understanding basic financial concepts and principles is crucial for making informed decisions about spending, saving, investing, and managing debt. High school students who learn these skills early on will be better equipped to navigate the financial challenges they will face in their adult lives.
Let’s dive in
6 Basic Financial Skills Every High School Student Needs To Learn
1. Budgeting
Creating a budget and sticking to it is a fundamental aspect of managing personal finances. High school students should learn how to track their income and expenses, set financial goals, and make a plan to achieve them.
2. Saving
High school students should learn about the importance of saving money for short-term and long-term goals. They should also learn about different types of savings accounts, such as savings accounts, money market accounts, and certificates of deposit.
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3. Investing
High school students should learn about the basics of ,investing, including the difference between stocks, bonds, and mutual funds. They should also learn about the risks and potential rewards of different types of investments.
4. Credit
High school students should learn about the importance of establishing and maintaining good credit. They should learn about the different types of credit, such as credit cards, personal loans, and mortgages. They should also learn about the importance of paying bills on time and how to read a credit report.
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5. Insurance
High school students should learn about the different types of insurance, such as health insurance, car insurance, and homeowner’s insurance. They should also learn about the importance of protecting against potential financial losses.
6. Taxes
High school students should learn about the basics of federal income taxes and how they are calculated. They should also learn about tax deductions and credits that may be available to them.
By learning these basic financial skills, high school students will be better equipped to make informed decisions about money and be on a strong path to financial success.
