The Importance of Financial Literacy by Janari
Janari's entry into Varsity Tutor's June 2025 scholarship contest
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The Importance of Financial Literacy by Janari - June 2025 Scholarship Essay
Financial literacy is an essential life skill that many adults/ young adults lack. It plays such a critical role in our future and everyday lives. During this transition into adulthood, we begin to face important financial decisions that range anywhere from student loans, credit cards, and budgeting & saving. Many of us are just thrown into the real world without the proper knowledge which can hurt in the long run. As young people, we are often the target for big-named companies because they know we don’t have the proper financial literacy skills. The consequences are much heavier when it applies to debt, credit, and financial instability. By requiring students to take a financial literacy course during their first semester of college, it would better prepare them with the tools needed to succeed financially.
Little is understood about interest rates, building credit, and loan repayment. Completing this course will allow colleges and universities to encourage students to develop budgeting skills, how to manage debt, and plan for the future. This course will especially be important for first-generation college students, like myself, who currently make up almost 30% of the college population. First-generation college students usually do not have knowledge about college, loans, etc. For many of us, this is our first time away from home and especially our first time managing our finances. These financial missteps can affect students’ credit and limit their future opportunities, such as qualifying for an apartment lease, buying a car, or even securing employment. A required financial literacy course would not only teach students how to avoid these common pitfalls but also help them understand more complex financial topics. These include investing, insurance, taxes, interest accumulation, and understanding financial aid packages.
Implementing this course would be an investment into the lives of our students and their future. The course would provide responsibility, reduce financial stress, and encourage the students to look forward to their future and maintain their success.