Why Personal Finance Isn't Taught in Schools...

School plays a vital role in providing knowledge and skills to students across the globe.

It’s a necessary part of growing up, hence needing to stay in education until your late teens.

But, there’s one subject that’s overlooked, which many say is important:

Personal finance.

Despite the importance of managing money in our lives, schools don’t teach personal finance.

A lack of financial education can lead to greater problems for people.

Here’s why personal finance isn’t taught in schools — and what you can do about it.

Lack of Qualified Teachers

One reason why personal finance isn’t taught in schools is a lack of qualified teachers.

Many schools may not have teachers who’re trained or have the expertise to teach.

Personal finance requires specialised knowledge in areas like tax & investing. This may not be a part of a typical teacher’s training.

It would replace or distort the market for financial advisors, who earn more than your average teacher.

So, if financial advisors become school teachers, what problems will arise?

• They’d have to take massive pay cuts.

• Every other teacher would have to be paid a lot more to balance it out.

• If the money stays the same, all teachers would want to reskill into personal finance, leaving shortages in other areas.

Limited Resources

Schools face budget constraints, and personal finance may not be a priority when allocating resources.

• Textbooks

• Instructional materials

• Staff wages

…may be considered a low priority compared to other subjects.

This lack of resources can further hinder the inclusion of personal finance.

But, if budgets are increased, there’s going to be a loser somewhere else, whether it be another public sector, or the taxpayer.

Cultural Taboos

Money and personal finance can be inappropriate, or “taboo” subjects in some cultures, which is sad to see.

Discussing financial matters may be impolite because of what it is.

As a result, schools may avoid teaching personal finance to avoid potential conflicts.

If personal finance was to be taught, there’s a chance that some controversy could be sparked.

It’s Too Valuable

Another weird theory of mine is that the economy would potentially collapse if everyone was good with money.

For people to continue to…

• Work

• Contribute to the economy

• Pay taxes

…the majority need to be bad with money, spending on things that they don’t need etc. to keep the economy functioning.

This isn’t to say that you can’t help yourself improve your financial situation, but if everyone had that luxury?

It might not be a good outlook for the economy.

Learning About Personal Finance

While the lack of personal finance in schools is a concern, self education is an alternative.

I’ve mentioned this a few times, but I’m a sucker for a good quote. This one hits once you understand the importance of self education…

“Formal education will make you a living. Self education will make you a fortune.”

Teach Yourself

If you’re reading this, then you’re already winning.

The first tip is to educate yourself about personal finance, and other areas surrounding it.

There are many online books and products available that can help you learn about:

• Budgeting

• Paying off debt

• Investing

• Other essential financial concepts.

Make it a priority to educate yourself and develop good financial habits.

Everything starts from self education. When you’re learning about something you don’t need to, it’s going to be more valuable because you’re going out of your way to teach yourself.

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This is with the idea of teaching you the things that you should’ve been taught in school.

Give us a follow and continue your learning on…

• Personal finance

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…and more.

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Teach Others

If you’ve developed good financial habits, share your knowledge with others.

Teach your…

• Peers

• Friends

• Family

…about the financial education that you’ve found from FiRev.

By spreading personal finance, you can help others improve their financial literacy.

You can get the ball rolling to start a wave of financial education in your circle.

This’ll give benefits to yourself and your friends/family.

Practise Good Financial Habits

The last point I’m going to make is all about implementation.

Knowledge becomes worthless without effective action.

Implement what you have learned about personal finance in your own life.

Come up with an overall objective, and use what you’ve learned to put things in place to achieve it:

• Budget.

• Side hustle.

• Investments.

Action will always be superior to knowledge. You can start taking action even if you feel as though you don’t have adequate education, as you’re able to learn as you go.

When it comes to personal finance in schools, the reality is common knowledge.

But at the same time, the solution is a simple one.

Self education is the only way forward in the present moment, and if you’re reading these exact words, you’re in the right place.

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