Question

In many countries, students leave high school without learning how to manage their money. Why is that the case? What could be done to tackle the issue?

Model Answer

Schools now teach a wider range of vocational subjects than in the past, but there remains a lack of training in practical skills such as financial management. I think this is an oversight on the part of school administrators and that they should prioritise teaching children more quotidian skills.

I believe there are two main reasons financial management is not taught in schools. The first is that the school curriculum is mostly concerned with preparing students for the workplace rather than equipping them with life skills. Financial literacy is just one of many practical skills that are neglected by the education system. The second reason is that, previously, it was not always necessary to teach children about the financial system. Managing money used to be relatively simple but has become increasingly complex with the advent of innovations such as online share trading, digital currencies, and internet gambling.

The government should address this issue by adding a life skills component to the national curriculum. Space can be found by removing more specialised subjects like business management, which are better suited to being taught at the university level. The extra time available in the school day could then be dedicated to teaching children how to make good investment decisions and avoid common scams.

In conclusion, although most people will eventually learn how to manage their money through a process of trial and error, this approach is not without risk. Therefore, schools should educate children on how to manage their money as part of a commitment to teaching practical life skills.

(258 words)