[2024/03/23] In many countries, students who leave high school have no understanding of how to manage their money.
Why is the case? What can be done to improve students’ understanding of how to manage personal finance?
There has been a growing concern among university students on how to manage their personal wealth. According to a recent survey, a significant proportion of students reported that they can barely make their ends meet with college studies. Indeed, governments and universities should make concerted efforts to address this thorny problem.
One common explanation for this phenomenon is that college students are given more than necessary than they could spend in a semester. They generally come from affluent families and enjoy privileges at an early age without worrying about how to make intelligent choices about money. This over-dependence on family wealth continues into adulthood and partially explains why university students today lack a basic understanding of budget planning.
As a result, it is imperative for societies to tackle this serious issue. To begin with, universities should incorporate a wide range of courses on financing and management into their curriculum and provide entry for college students to practice what they learnt in class in real life. For instance, they may calculate their monthly spending by making a balanced sheet and generate income via purchasing low-risk financial products. Moreover, to avoid spending money lavishly, students ought to be encouraged to make their own living through part-time jobs or internships instead of receiving additional money from their parents. In this way, they will eventually cultivate a clearer idea on wealth management.
In conclusion, though high school graduates can still be considered as inexperienced adolescents, learning how to spend their money appropriately is the first step to become independent individuals. Societies and parents, therefore, should be fully aware of its importance and take the lead to improve their understanding of managing personal finance.
