5 Money Lessons They Should Teach in High School, According to Rachel Cruze
Written by
Brooke Barley
Edited by
Amber Barkley
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Financial literacy is not often taught in high school. This means many young adults have jobs, but don’t know the basics about how to manage the money they’re earning.
CNBC reported the results of a 2024 Tyton Partners and Next Gen report, which found that students who completed a one-semester personal finance class would see an economic benefit of $100,000 per student. GOBankingRates previously reported that 60% of Americans believe personal finance should be taught in school.
Personal finance expert Rachel Cruze agrees: She recently talked about the need for financial education in a recent video on her YouTube channel. Here are the financial lessons she thinks need to be a part of the high school curriculum.
How To Budget
Cruze highlighted the importance of knowing how to track expenses. She talked about how students should be taught about the “zero-based budget.”
In a zero-based budget, every dollar you earn is accounted for — the amount of money coming in minus the amount of money going out each month equals zero. Cruze said the amount of money going out should also include money being devoted to savings.
Stay Away From All Debt
Cruze stressed the importance of avoiding all forms of debt, from credit cards to student loans.
For those in high school that are thinking about enrolling in college, Cruze recommended they choose a school that’s affordable, rather than taking out student loans to pay for it. She also advised that young adults save up for a car instead of taking out a car loan and having a monthly payment.
In the video, Cruze said, “If you invested your car payment from age 22 to age 65, you’d have millions of dollars, but yet we spend our whole lives just paying a car payment every month.”
Generosity
In her video, Cruze talked about how she wished students were taught about the power of giving. “If we made giving a priority, I’m convinced our world would be in a better place.”
She went on to say that money can be used to uplift families and communities, and young people should know where they can give money to have the most impact.
You can even boost your tax refund with strategic charitable donations, improving your own financial position and offering help to those who need it at the same time.
How To File Taxes
As many Americans experience well into adulthood, filing taxes can be confusing — and there can be significant consequences for failing to file.
This is why Cruze suggested that high school students be taught basic tax vocabulary, how to file and when to pay taxes.
Investing in Simple Terms
Even adults shy away from investing, because approaching it can be complicated. Cruze wished students had the opportunity to understand why it’s important to build retirement savings and the power of compound interest.
However, before investing, Cruze suggested individuals be in a solid place financially to succeed. “Just know you want all of your debt paid off, and you want a fully funded emergency fund.”
Once you’re debt free and have that emergency fund, Cruze suggested putting 15% of your income into retirement, specifically in a Roth IRA or 401(k).
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Sources
- CNBC, “Taking one personal finance class in high school has a lifetime benefit of roughly $100,000.”
- YouTube, “5 Money Lessons Everyone Should Learn in High School.”
