What does school teach you about money?

In today’s fast-paced world, financial literacy is more crucial than ever. Yet, ironically, our education systems in the UK and across the Western world seem to overlook this vital life skill. So what does school teach you about money? As someone passionate about precious metals and sound money principles, I often wonder: why don’t schools teach us about money, economics, and financial management?

Let’s dive into this puzzling gap in our education and explore the reasons behind it.

The Current State of Financial Education

Think back to your school days. You probably remember lessons on algebra, literature, and perhaps even the intricate details of photosynthesis. But do you recall any classes on budgeting, investing, or understanding monetary policy? For most of us, the answer is a resounding “no.”

In the UK, financial education has only been part of the national curriculum since 2014, and even then, it’s often limited in scope and not consistently implemented across all schools. The situation is similar in many Western countries, where financial literacy is frequently treated as an afterthought rather than a core subject.

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Why Is Leaning About Money Important?

The lack of financial education in schools has far-reaching consequences:

1. Personal Debt: Many young adults enter the world of work ill-equipped to manage their finances, leading to mounting personal debt.
2. Poor Investment Decisions: Without understanding basic economic principles, people often make uninformed investment choices.
3. Vulnerability to Financial Crises: A population that doesn’t understand monetary policy is more vulnerable to economic downturns and financial manipulation.
4. Missed Opportunities: Many people miss out on wealth-building opportunities simply because they don’t understand them.

So, Why Don’t Schools Teach About Money?

There are several reasons why financial education is often neglected in our school systems:

Outdated Curriculum

Educational curricula often lag behind societal needs. While the world has rapidly changed, with complex financial products and digital currencies becoming commonplace, school curricula have been slow to adapt.

Lack of Qualified Teachers

Many teachers themselves weren’t taught about personal finance or economics in their training. This creates a cycle where financial illiteracy is perpetuated through generations.

Political and Economic Interests

Some argue that there might be vested interests in keeping the general population financially uninformed. Gold and Silver UK feels this is a highly likely tactic to keep the population unaware of what real money actually is and how the financial system actually works. 

A population that doesn’t understand monetary policy or the nature of money itself might be less likely to question economic decisions made by governments and central banks.

The Complexity of the Subject

Money and economics can be complex subjects, involving mathematics, psychology, and even philosophy. Designing a curriculum that’s both comprehensive and accessible to young students is challenging.

However, Gold and Silver UK aims to simplify the world of money breaking it down into easy to understand blog posts. Teachers could also aim to do this. 

Focus on Traditional Academic Subjects

Schools often prioritise subjects that are seen as more “academic” or that align with standardised testing requirements. Personal finance and economics often fall by the wayside.

The Illusion of Prosperity

In times of economic growth, there’s often less perceived need for financial education. The importance of understanding money becomes apparent during economic downturns, but by then, it’s often too late for many.

What Should Be Taught?

If schools were to implement comprehensive financial education, what should it include? Here are some key areas:

1. Basic Budgeting: Understanding income, expenses, and how to balance them.
2. Saving and Investing: The power of compound interest, different investment vehicles, and the basics of risk management.
3. Understanding Debt: The differences between good and bad debt, interest rates, and the long-term impact of borrowing.
4. Taxes: How the tax system works and basic tax planning.
5. Economic Principles: Supply and demand, inflation, and how the broader economy affects personal finances.
6. Monetary History: The evolution of money, including the role of precious metals like gold and silver.
7. Critical Thinking About Money: Encouraging students to question and understand the nature of money itself.

The Importance of Understanding Real Money

As someone who believes in the enduring value of precious metals, I think it’s crucial that any financial education includes a thorough understanding of what constitutes “real” money. Throughout history, gold and silver have served as reliable stores of value and mediums of exchange. Understanding this history can provide valuable context for navigating today’s complex financial landscape.

What Can We Do?

While we wait for educational systems to catch up, there are steps we can take:

1. Self-Education: Take advantage of the wealth of information available online, in books, and through financial literacy courses.
2. Teach Our Children: Don’t rely solely on schools. Teach your children about money management from an early age.
3. Advocate for Change: Push for more comprehensive financial education in schools by engaging with local education authorities and policymakers.
4. Support Financial Literacy Initiatives: Many non-profit organisations are working to improve financial education. Support their efforts when you can.
5. Online Blogs: Online blogs such as this one (Gold and Silver UK) are a great way to get started on your financial education journey. Blog like this one help keep the world of money and financial education simple. 

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The absence of comprehensive financial education in our schools is a significant oversight with real-world consequences. As we navigate an increasingly complex economic landscape, understanding money, finance, and economics is more crucial than ever.

By advocating for better financial education and taking steps to improve our own financial literacy, we can work towards a future where everyone has the knowledge they need to make informed financial decisions. Remember, true wealth isn’t just about accumulating money – it’s about understanding it.

In a world where financial knowledge is power, let’s empower ourselves and the next generation with the tools they need to thrive. After all, in the words of Benjamin Franklin, “An investment in knowledge pays the best interest.”

Main image by Kohji Asakawa from Pixabay

Blog post image by StockSnap from Pixabay