Personal Finance Lessons Students Should Learn Before Graduation

How to make a budget.

It all starts with the budget. Here, students can compare earnings to expenses. It will give them insight into the value of a dollar. With a budget, students can plan for major purchases, eliminate debt and create good saving habits. Check out our budgeting guide here!

How to balance a checkbook.

While few people probably write checks anymore, students should still know how to balance a register. Even if they prefer to use an app to help keep up with their funds, the basic accounting skills they’ll gain from an old-fashioned register will give them insight into how their money flows. It will also teach them that even financial institutions can make mistakes, so it’s good to check the account for errors or fraud on a regular basis.

The real cost of credit cards.

Credit cards have advantages, but as anyone who’s gone into debt knows, those advantages can come at a significant cost if card holders aren’t careful. Understanding how compound interest works and what that $40 shirt will cost them if they take years to pay it off – will help them make wise choices with their credit.

How to build good credit.

Good credit can save them exponentially over a lifetime. Everything from home and auto loans, to job applications will be affected by a person’s credit score. Teaching students about what makes their score good, how to build it and how to monitor it will set them up for years of success.

What to do when it goes wrong.

Having a financial backup plan can make the difference between disaster and survival, when a major catastrophe strikes. Tools such as health and homeowners insurance and a savings account are critical, but increasing numbers of Americans do not employ these resources. Teach students how to plan ahead of time so they can weather inevitable disasters successfully.

Article Source: Jennifer Reynolds for CUInsight.com

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