In this article we will be looking at the top 7 lessons schools do not teach about finance, what the school teaches the students, and why it’s very important to teach these important financial lessons in school for a brighter future.
Currently, about 90% of the learning carried out in schools are not related to money, hustling and financial management. Schools do not teach the students on resources that could help them make enough money, be self-dependent and also become an entrepreneur in life. Schools mostly limit their scope of teaching to what will help the students secure jobs which includes, how to mix chemicals, arrive at a defined solution, balance equations, write out formulas and memorize the names and history of the government.
The main focus of this article is that schools should be willing to expose students to resources that will help them become self-dependent, entrepreneurs and also help them manage their financial resources.
Top 7 Lessons Schools Do Not Teach About Finance
Here are some of the top lessons schools do not teach about finance:
Becoming money savvy: Schools do not teach students how to become money savvy as this is not part of the school course outlines. But nevertheless, becoming money savvy mustn’t be learnt in school. There are lots of online courses and multiple tutorial points that teaches people how to be money savvy and they include blogs that discuss about finance, finance books and pdfs, finance podcast and money management applications and websites.
Making money and earning a living with a laptop: Making money from a laptop is one of the best and current ways of making money from the comfort of your home or from anywhere in the world. Schools do not teach students how to make use of the pc as a money source but rather teach them how to use the laptop for finding solutions to problems. There are different businesses anyone can start up using a laptop and they include: blogging, vlogging, video editing, animations and cartooning, graphic design, freelancing, forex trading and many more.
Importance of tracking finance: Schools most times look into financial management and expense tracking, there are still lots of amazing tools available online that can help anyone monitor their finance for free and they include personal capital, money yodlee, status money and many more. This tools are linked to your bank account and allows you monitor the inflow and outflow of money in your account and also alerts you when your expenses are going overboard.
Getting wealth from owing assets: Schools fail to teach students about the importance of owing assets and that owing assets is the shorter way to attaining wealth. Assets can be defined as anything that appreciates over time and pays you just for owning them. Example of such assets include: a monetized website, a youtube channel, real estate, buying stocks and bonds and many more.
How to use money to make more money: Schools fail to teach students that money can be used to make more money. What comes into the mind of an average person on how to use money to get more money is gambling, but this isn’t right. When focusing on how money can be used to make more money, we are simply looking at investing profits and buying of more shares using the profits. We can as well invest out profit in other profitable businesses that tend to yield more profit over time.
The compound interest concept: When reviewing the financial studies going on in schools, you can clearly tell that the concept of compound interest are only defined but not deeply explained in school. When making investment, people should understand that the more the invested capital, the more the returns. We should be ready to put in part of the profit made from our previous investment into our new investment in other to make more profit. Using compounding interest principle, it should take a shorter period to grow from a $650k to $1m, than to xgrow from $0 to $100k when we invest $10,000 at 8% annual profit interest rate. This simply means that the higher the invested capital, the higher the returned profit and the lower the time taken to get more profit.
Correlation between money and human emotion: As adults, our emotions are strongly bound to our finance and how we utilize money. For example, using the forex and stock market, people tend to invest more in a particular stock when there is more bullish moves, which in return will cause more bullish moves. But ones there is slight panic in the market which resulted in a bearish move, people tend to withdraw from the market and this in return will lead to more bearish moves. Citing the eCommerce section, you can find the ash colored mac book selling at a higher price compared to the white colored mac book, despite been of the same model and having no special additional feature. This idea is highly effective and reliable and has been used by most big companies to scale up their profit.
School institutions should make more visible adjustments to their curriculum which will enable students learn more about financial resources that will earn them an independent life style. Schools should be more focused on creating more entrepreneurs rather than job seekers in the country. The more entrepreneurs we have in a society, the more the number of businesses present in that society, and which in return will lead to greater chances of more job opportunities been created.