Summary: High schools must offer a course on financial literacy that covers essential topics such as filing taxes, basic budgeting (including the 50/30/20 rule), and credit building.
Writer’s Notes: While many believe it is the parents’ responsibility to teach their children about finances, there are numerous families—from those living in poverty to those in middle-class and even affluent communities—who may not have the knowledge to budget effectively. While I recognize the importance of building personal wealth, I believe that this course will equip students with fundamental skills to manage their finances as adults. This initiative has the potential to benefit Americans and future generations significantly.
- All high schools will be required to offer a basic financial literacy course for students, ideally aimed at those aged 17-18+. However, I understand that some may prefer it to be offered as an elective.
- Teachers will instruct students on how to file taxes for standard W-2 employees and 1099 workers. The curriculum will include a discussion of the pros and cons of hiring a professional tax preparer versus filing independently.
- Students will learn to create a basic budget using real-world examples, such as managing living expenses, savings, and discretionary spending. I recommend teaching the 50/30/20 budget: 50% of income for necessities (bills, utilities, groceries), 30% for wants (entertainment, clothing), and 20% for savings.
- The course will emphasize the importance of establishing an emergency fund, guiding students on how to determine what a 3- to 6-month emergency fund should look like.
- While I acknowledge the value of investing and understanding the stock market, I believe these more advanced topics are not essential for this introductory course.
- Students will gain insight into how debt works, learning that a credit card’s limit does not equate to a recommendation to spend to that limit. They will also understand concepts like interest rates, APR on credit cards, and other foundational skills related to debt management.
I am 22 years old and was homeschooled, where my parents made a concerted effort to teach me about finances. Growing up in a lower middle-class family, their guidance allowed me to achieve a better financial position than many of my peers and even some family members. I am not suggesting we cover every financial detail, but I genuinely believe that Americans can benefit greatly from learning these basics. Ultimately, how they apply this knowledge is up to them.
I would greatly appreciate any feedback, particularly from those with more life experience who can provide different perspectives on this issue. If you disagree, I would love to hear your thoughts and engage in an open discussion.