Academic Qualifications

‘Financial education should be introduced as a compulsory subject in schools.’
What is your opinion? You should write at least 350 words. Illustrate your opinion with examples. I agree that fi nancial education should be introduced as a compulsory subject in schools. Some students believe that certain subjects taught in school are not benefi cial in later life. Students want to learn something that they can utilize in life. Therefore, fi nancial education is indeed a good subject to be introduced in schools.
Firstly, students will learn how to spend wisely. Students should learn how to save and spend wisely even when they are in primary school. Some students are given a lot of pocket money as parents are busy with their own agendas. Some parents do use money to compensate for lack of time spent with their children and to show their love. However, young children may misuse the money given to them. They may spend their money on junk food or other useless things as parents are too busy to instill in their children the value of saving money and spending wisely.
Similarly, secondary school students with extra pocket money can afford to buy more expensive, pricey items such as mobile phones and branded clothing. They have high spending, but not earning, power. This can create the habit of spending without budgeting or planning. This is a situation that certainly calls for fi nancial education. Financial education will teach these students how to budget or plan their expenditure, and how to make decisions on what to buy.
Other than that, fi nancial education also teaches students the advantages of saving and investing money. A healthy savings account will help students to be prepared for a fi nancial emergency.
Today, many students do not seem to care too much about saving money. They would rather spend it on having a good time. The subject of fi nancial education could teach students how the money spent could actually grow instead by accumulating interest if placed in a banking institution. They are also exposed to how short-term or long-term savings accounts work in banks and the difference between a simple savings account and a fi xed deposit. The knowledge gained can be useful when the students go out into the real or working world. Introducing this subject at a young age would give them a strong foundation.
Finally, fi nancial education can instill wise fi nancial management among students. This can help them to manage and overcome fi nancial problems once they are in adulthood. For example, problems such as bankruptcy and credit card debt, which point to poor fi nancial management, are on the rise. If students learn about fi nancial management, it can help to alleviate this phenomenon.
At the same time, students will also learn about insurance, unit trust funds, share markets and retirement plans which can help them tremendously when planning their future fi nancial life.
In conclusion, fi nancial education provides important awareness on spending habits and helps individuals in future. Therefore, I agree that fi nancial education should be made a compulsory subject in schools.