Financial Literacy

The Key to future Success 

Written by Sofia Levine-Bosch

Financial literacy refers to the understanding of how to earn, manage, and invest money. It is a tool critical to the success of anyone, and is particularly pertinent to high school students, who are faced with college (and the student debt that comes with it) looming around the corner. 

Though the topic, as it is not often well taught in high school, may seem convoluted or confusing, financial literacy can be boiled down to the mastery of a few skills. Budgeting is the cornerstone of financial literacy: it is the ability to plan and allocate financial resources. Simply listing one's expenses and the amount of money required for each one is a simple and effective way to begin incorporating budgeting into your routine. 

When building one's financial future, it is also important to have a safety net, which is where saving enters the picture. It can be as basic as putting five dollars into a savings account every time you get paid, and can be incredibly helpful in an emergency. Debt management is another important skill, and it is the mastery of thoughtful borrowing. Keeping very close track of who you owe money to and being diligent in repaying them is how you can ensure that you never need to touch that savings account. Not only is it prudent to maintain and save your money, but it is necessary to know how to grow it using investment. Learn about interest rates, price levels, diversification, risk mitigation, and indexes to become a top tier investor and watch your money grow. These are the puzzle pieces that make up the big picture of financial literacy. 

Don't be caught unawares by college debt and student loans. Take action and control of your future by educating yourself on the world of finance. Start by setting up budgets, learning about credit, and using apps to track spending. Because school won't teach you, learn to become comfortable managing your money as a high schooler and go into your future with confidence and security.