One topic that is dangerously underappreciated in the chaos of student life is financial literacy. The majority of students are taught how to compute compound interest, but not how to use it. We can’t read a bank statement, but we know Shakespeare’s sonnets. This situation needs to be improved.
Being financially literate is essential; it is a life skill. Additionally, it may be the difference between a debt cycle and an independent future for students. A financially savvy student just doesn’t get by, they plan. For example, they budget, save and invest. Budgeting enables one to make wise decisions with little money, guaranteeing that we can purchase necessities without too much stress. Secondly, if you know how to save, even in tiny amounts, you will find that you will panic less because you will have planned for your expenditure ahead of time. It is important to note that saving (being able to preserve) and expanding (investing) what you have is more important than having a lot. Students who learn how to manage their finances and invest while still at campus therefore, are sowing seeds for financial freedom.
Students must also be aware of financial traps, which range from mobile loans to “buy now, pay later” schemes. A student who understands how money works can anticipate these pitfalls and take the safer and better route.
Financial literacy is not only about learning how to manage money. As one learns more, they pick up decision-making skills, and learn how to be independent and responsible. The subject transforms them from being problem-dwellers into becoming solution-finders.
It is therefore crucial for educational institutions to incorporate personal finance into their curricula, for organisations to hold workshops on financial literacy, and for students to pursue the information that will influence their futures for the better.
Florence Faida,
Advocate for financial literacy
