In high school, you likely sat through classes wondering why you were learning seemingly useless topics. While school serves a purpose, it misses the mark on teaching you many worthwhile skills, particularly those related to finances. In this article, we’ll share five money lessons school should have taught you that could be life-changing.
Lesson #1: Negotiation Tactics
Interpersonal skills, particularly negotiation, hold their weight in value as they can be applied across numerous business contexts. For instance, if you’re a business owner and use your negotiating skills to haggle a lower price or a longer payment period with a supplier, it can free up cash flow and improve your money position.
Moreover, these skills apply to the typical 9-to-5 worker. Negotiating a raise or promotion can be lucrative; however, statistics show that most people lack the skills to pull off this feat. The biggest reason for not asking is fear based on a lack of knowledge and confidence that stems from improper education of the skill during school.
Lesson #2: How to Pay for College
High school classes try their best to prepare you for the next test or exam, but they do little to prepare you for one of the largest financial outlays of your life – college tuition. Most students assume that the way to pay for college is by using student loans, but there are options available, financial aid, scholarships, and work-study options.
Learning about how to pay for college and not simply going into massive amounts of student loan debt should be a mandatory class in all high schools.
Lesson #3: The Power of Compound Interest
Students are the ideal age to begin.
understanding the power of compound interest, so they can invest early and let their money work for them. Do you know Eighth wonder of the world is Compound interest. Schools should be teaching students how to utilize this power and invest early so they can retire early.
Lesson #4: How to Set Up a Budget
A budget is the key to succeeding financially. If you don’t know how much you’re bringing in every month and how much you are spending, you’re going to end up in the red. Learning to set up a realistic budget and plan for the future is essential to being successful later in life.
Lesson #5: How to Build Wealth Outside a 9-to-5 Job
The wealthiest people in the world are the ones who get to wake up each morning and decide exactly how they’d like to spend their day. But prescribing to the typical 9-to-5 job is not likely to grant you that kind of freedom. Therefore, it’s important to learn how to build wealth outside of a 9-to-5 job. There are many ways to build wealth, such as investing, starting a business, or even side hustles.
Conclusion
In conclusion, these five money lessons should have been a part of the high school curriculum. Students can position themselves for financial success and steer clear of the dangers associated with a lack of financial education by learning these crucial skills at a young age.