What is the point of learning complex theorems or memorizing dates and events, when in real life, all that would mater is how you deal with money? What is the point of understanding high-flying compound interest formulas, if in later stages of professional life, it takes great struggle to understand the actual concept and real-life application. How necessary is it to familiarize students with personal economics and finances?
How many of us in high-school felt that they wouldn’t ever use the complex mathematical formulas in real life- “Where am I going to use this?” While most parents and teachers respond to this by giving vague explanations on how this would improve their mental ability and critical reasoning, the actual applications are far close to reality.
While most people assume that to manage their financial resources, they need to have just the basic math knowledge, like calculations and algebra, they are left confused when they are to apply for loans or invest in stock market. Effective investment, even on personal level needs an understanding of higher level mathematics, as well as its projections on the financial market dynamics, the interest or payment terms, all to avoid irresponsible losses due to incomplete knowledge. Even when you are buying a house or applying for a study loan, you need to understand how mortgages work, payment protection insurances, or even the basic concept of proper budgeting to avoid debts. People who earn reasonable amount may have to pay taxes, and other than the basic procedures of filling the tax forms, there are also a number of ways you can reduce your tax deductions. Such strategies help to save money, by making smart and informed financial decisions.
Economics isn’t a subject exclusively for future entrepreneurs, but for everyone who is going to have a job and be a part of the economy of the country. Banking, loans, debts, insurances, stock investments, mortgages, compound and simple interests, supply and demand dynamics, government subsidies, tax deductions- all these are going to be useful to a person in real life. While the curriculum covers other basic subjects like biology and applied mathematics, it is equally essential in include economics in the syllabus. Improper and incomplete knowledge is the reason why most student loans turn into disastrous debts, why credit cards have become an addiction, why most people don’t even have proper insurances, why people investing in gold, real estate or stock exchange lose so much money, why people are lined up by huge mortgages, economic illiteracy is the cause of poor financial repercussions on the impulsive young generations.
Some basics ideas like budgeting and diversification are important for financial independence and healthy growth. Achievement doesn’t refer to scores and limited to mark-sheets, it is the appropriate knowledge gained in a given domain and the intensity of the use of this knowledge in real life.