In a time of global financial turmoil when countries such as the United States are facing some of the biggest financial crises since the Great Depression of the 1930s, the significance of personal finance literacy has never been greater.
In a study released by Milken Institute this year, just around 57 percent of the U.S. adult population is financially literate. While most parents acknowledge that they are responsible for providing their children with knowledge about personal finance, 31 percent admitted that they have never really discussed it with them.
Currently, there are only 24 states in the country that stipulate high school students take a stand-alone personal finance course to graduate. According to advocates of financial literacy, this number is too low. Research points to the fact that having a basic knowledge of personal finance will help Americans make smarter decisions with the money they earn. This is why there needs to be more awareness about personal finance through the school system as well as in homes.
READ MORE : How to Finance a Startup Business
Personal Finance Classes for Adults
As an adult, having financial literacy is an integral component of improving one’s quality of life. What follows are some pointers as to why personal finance classes for adults are crucial.
A 2019 study revealed that the total credit card debt that Americans owe amounts to more than $800 billion, and that adults between the ages of 18–29 have credit card dues which run for more than 90 days. In 2022, that debt has reach $925 billion, according to LendingTree.
It was also revealed that, in 2020, around 28 percent of adults reported a scenario where if they lost their primary source of income, they just had enough money to support themselves for a week. Only 15 percent of the respondents believed they had enough savings to last for three to six months.
Again, in 2019, when asked what part of their financial finances worried them the most, 17 percent of adults said they were concerned about not having adequate retirement funds.
In terms of managing one’s personal finance, there are some basic skills that an individual needs to develop. They must know how to prepare a monthly budget. They need to learn how to save some money every month, and keep it aside to build a long-term savings fund. They must practice paying bills on time instead of delaying them and paying unnecessary fines. They also need to keep track of their credit score. Personal finance classes for adults can help one develop and master these skills.
