25 Things Schools Still Don’t Teach About Managing Money

Financial literacy is a critical life skill. Yet, many schools still fail to teach the basics of managing money. This leaves millions of students unequipped to handle real-world financial responsibilities. From budgeting to investing, there are countless lessons that could make a world of difference for financial stability and success. Below are 25 crucial financial topics that most schools overlook—but should teach in every classroom.

1. How to Create a Budget

Budgeting is the foundation of financial planning. Learning to map out earnings, expenses, and savings helps you live within your means and avoid debt.

2. The Importance of Emergency Funds

Unexpected expenses are inevitable. Schools rarely emphasize why setting aside an emergency fund (typically 3-6 months of living expenses) is critical for financial security.

3. How Credit Works

Few students graduate understanding what a credit score is or how it’s calculated. Yet, it affects everything from renting a home to qualifying for loans.

4. Managing Student Loans

With rising college costs, understanding student loans, their terms, and repayment strategies should be a staple in education.

5. Understanding Taxes

Filing taxes can feel overwhelming for a first-timer. Teaching how to read a tax form, calculate deductions, and file returns would empower young adults to do it with confidence.

6. How Interest Works

The difference between simple and compound interest can make or break your financial health. Whether it’s paying off debt or earning on investments, schools should teach how interest is a double-edged sword.

7. Planning for Retirement

Retirement can seem a lifetime away for students. However, the earlier they understand concepts like 401(k)s, IRAs, and compound growth, the better prepared they’ll be to retire comfortably.

8. Building and Maintaining Good Credit

Beyond understanding credit scores, students should learn how to establish credit responsibly. This includes paying bills on time and keeping credit utilization low.

9. How to Pay Off Debt

From credit cards to car loans, debt repayment strategies like the “debt snowball” or “debt avalanche” can help people regain control of their finances.

10. Negotiating Salary and Benefits

Most people accept the first job offer they receive, unaware they can negotiate salary and benefits. Teaching negotiation skills would empower students to advocate for their worth in the workforce.

11. Saving for Big Purchases

Whether it’s a car, house, or vacation, schools rarely teach how to save for major expenses without derailing other financial goals.

12. Living Within Your Means

This often-ignored concept emphasizes spending less than you earn, avoiding lifestyle inflation, and prioritizing long-term goals over short-term gratification.

13. The Basics of Investing

Stocks, bonds, mutual funds, and ETFs might sound intimidating, but learning how to invest early can yield significant financial growth over time.

14. The Power of Compound Interest

While compound interest is sometimes mentioned in math classes, the focus is rarely on how it applies to personal savings or debt over decades.

15. Renting vs. Homeownership

Should you rent or buy? Schools rarely explain the long-term financial impacts of renting versus owning property, and how it depends on factors like location, job stability, and future plans.

16. Insurance Basics

Understanding health, car, renters, and life insurance is essential for navigating modern life. Yet, it’s a topic routinely left out of the curriculum.

17. Hidden Costs of Financing

Taking out a car loan or mortgage? Most only see the monthly payments but ignore how interest, fees, or length of the loan significantly increase the cost of ownership.

18. Fraud Prevention and Cybersecurity

With rising cases of identity theft and online scams, equipping students with tools to protect their financial identity is more important than ever.

19. The Importance of Giving Back

Financial success isn’t just about what you keep; it’s also about what you share. Schools can teach the benefits of charitable giving and responsible philanthropy.

20. Understanding Employee Benefits

Salary isn’t the only thing that matters. From health insurance to retirement accounts, schools should teach how to evaluate benefits offered by an employer.

21. The True Cost of Credit Cards

Credit cards can be a valuable tool or a financial pitfall. Students need to understand fees, interest rates, and how to use credit responsibly.

22. Preparing Financially for Life Transitions

Marriage, parenthood, or a career change all come with financial shifts. Knowing how to plan for these changes can prevent financial stress down the road.

23. Health Savings Accounts (HSAs)

HSA accounts offer a tax-advantaged way to save for medical expenses, but many people don’t know how they work or how to leverage them.

24. Balancing Needs vs. Wants

Differentiating between needs (e.g., housing) and wants (e.g., designer clothes) is a simple but crucial lesson that too few schools emphasize.

25. Setting and Achieving Financial Goals

Whether saving for a vacation or aiming to become debt-free, learning to define, plan for, and achieve financial goals is a skill every student should master.