Due to the lack of financial education in traditional schooling.

It’s a prevailing notion among individuals of my age group that we were ill-prepared to handle our personal finances until we faced the urgent need to do so. While we were all taught that mitochondria is the powerhouse of the cell, practical financial skills were notably absent from our education. The inadequacy of financial literacy in traditional schooling has sparked growing curiosity. Instead of lamenting the shortcomings of the public education system, let’s focus on essential skills that are crucial for everyone to grasp. Whether you are a parent wanting to educate your teenage children or a young adult yourself, these skills are paramount.

First and foremost, mastering the art of filing taxes is imperative. Despite the convenience of tax services like TurboTax and H&R Block, they are not foolproof and can be costly for complex financial situations. Understanding the ins and outs of your income and expenses is crucial, especially during financially challenging times. Once you have organized your financial information, you can utilize a tax service for free filing.

Secondly, managing your checking and savings accounts is vital. While check payments are becoming increasingly rare, it is still essential to track your finances regularly, typically through online banking. Keeping a close eye on your earnings and expenditures helps you comprehend the tangible value of money. Watching your balance decrease reinforces the realization that money is finite and requires careful oversight.

Lastly, comprehending long-term financial commitments such as mortgages and payment plans is essential. Personally, I was unaware of what a mortgage entailed until my twenties due to a lack of financial knowledge. Even if you currently do not require services like a mortgage, understanding their workings and implications is beneficial in avoiding potential financial pitfalls.