Why Is Financial Literacy Important For High School And Post High School?

Why financial literacy is important for high school and post-high school? Learning about financial education will give you enough insight to manage your money.

Money is needed by all people. If you cant manage your money in the right way then you may lose your money for nothing. You better take financial literacy course, and you can get some benefits here.

Why Financial Literacy is Important to Differentiate Debt

When you learn about financial education you will be able to differentiate between good and bad debt.

You may educate high school pupils on the distinction between good debt and bad debt once they have a general understanding of debit, credit, and interest.

While there are many misconceptions about what constitutes good debt and what constitutes bad debt, it’s critical for teens to understand that good debt entails low-interest rates, manageable repayment schedules, and reasonable certainty that the financial impact of taking on the debt justifies borrowing the money in the first place.

The following are some examples of good debt:

  • As a technique of acquiring a home as an asset, mortgage loans are utilized.
  • Student loans as a path to a better future through education
  • Business loans are used to help a company grow and earn more money.

Debt used to buy depreciating assets, on the other hand, is known as bad debt. High-interest rates, predatory lending, strict repayment schedules, and a loss of value in the loaned asset over time are all common characteristics.

Why Is Financial Literacy Important

The following are some examples of bad debt:

  • Card debt with a high-interest rate
  • Loans for payday
  • Lines of credit or personal loans (when used irresponsibly)
  • Loans for Students
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Typically, students apply for student loans during their senior year of high school. Parents and guardians can educate incoming college students on what student loans are and how to avoid common student loan blunders.

When students understand how to apply for student loans, obtain the funds, and begin their college career, it will be time to repay what they borrowed

Educate them ahead of time on why it’s critical to pay down the principal as quickly as they can to avoid accruing further interest.

Getting a good credit score

Establishing credit as a young adult is crucial to establishing strong credit later in life. Obtaining a credit score from one of the three major credit agencies is also a significant predictor of a person’s financial health and future capacity to borrow money.

While it is possible to repair a credit score that has been harmed by late or missed payments, getting off to a strong financial start can help young folks achieve financial success in the future. Now, you already know why financial literacy is important for high school and post-high school.

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