Learning the fundamentals of financing at an early age is beneficial to students around the world when preparing to enter adulthood.
Properly understanding what checking, savings, taxes, and investments are can help set students up for financial success in the future. Without knowledge of these four things, a student can have a hard time being successful in the financial world.
“I think it’s crucial that high school students engage in the fundamentals of financing,” dollars and sense teacher Mrs. Galindo said. “The earlier the student is exposed, the more they become aware of finances, to include budgeting, savings, debt, credit, and so on. These fundamentals help them become more independent as they embark on life after high school, whether it’s finding an apartment, saving for tuition, buying a vehicle and/or insurance, and even as far as investing in their future. All of these items play off of one another, and knowing how they’ll pay for each is important.”
A checking account is the account that holds the money available for a person to use with a debit card. Although it holds the money someone is able to use, not all of it is always available.
When you make a payment or transaction, the money can take some time to go through. When this happens, and your bank account shows that you have money in it but less is available, that means that it is waiting to be accepted to go through.
You do not have to worry about accidentally using that money because it will no longer be available to you. Another important thing to know about a checking account is that it is not the same thing as a savings account.
The account that people use to put money to the side, or save up, is called a savings account. The money someone puts in a savings account cannot be used unless moved to a checkings account.
It is always a good idea to save money. If you put money into a savings account every month or every paycheck, you will be good to go if something goes wrong and/or you need to make a big purchase.
The next thing everyone should know is what taxes are.
Tax is the money taken out of someone’s paycheck and sent to the government. Taxes are taken out of everyone’s paychecks, and they are not optional.
It is not possible for someone to say, “I do not want to pay taxes, so I will not pay them.” The amount of money that gets taken out of your paycheck depends on the amount of money that you make.
The last thing that everyone should know about financing is investing.
Investing is the key to financial success. If you do not know how to properly invest, any financial goal you have may not be achieved.
You should always invest some of your money into savings. This will help if you get stuck in a tough financial position. You should also know how to invest in things such as a home and a car.
You should never get something you cannot afford. Let us say a person makes $15,000 a month, and they want a home. They cannot go and get a house that they have to pay $15,000 or more a month for. They have other bills to pay, and they need to be able to make a living.
Same goes for a car. If you buy something that you cannot afford, you will be in debt.
“I believe that everyone should know what checking accounts, savings accounts, and taxes are well before they get to high school,” student council teacher representative Mrs. Mack said. “As for investing, it would be great if students this age learned the fundamentals of investing in terms of the different types of investments that are available.”
Learning the basics to financing is very important, and it is not hard. It can help lead to financial success and accomplish any financial goals you have.