If you look at this generation of students, you’ll find that most are “shell shocked” once they graduate because they had little or no preparation for what was to come.
High school mostly teaches you to memorize information and to regurgitate it back to your teacher, only to completely erase the information from your mind the moment you walk out after taking the test.
When you go on to college, you do a bit of the same things, but you also learn to think analytically, critically, and to broaden your mind so to speak, but even people who graduate from college will learn lessons from the real world the hard way as well. The sad part is all of this could’ve been prevented with some proper education beforehand.
Here are a few things I firmly believe should be taught in every school in America so that students don’t get railroaded when they enter the real world. If you’re still in school and reading this, consider it your lucky day as mastering these five skills will give you a great head start and help separate you from the rest of the pack as well.
* Personal Finance
Every week or so, there always seems to be a new article in CNN, USA Today, or Yahoo about young adults struggling with debt, whether it be from credit cards or loans in general. High interest rates, hidden fees, not consolidating debt – these terms and concepts are mostly unknown to young adults and because of that ignorance, they tend to make big errors in judgment. A prime example is thinking that they just have to pay the minimum on their balance and not realizing that by doing so, they pay 2-3 times as much in the long run.
Alongside that, most young adults don’t have a clue on how to invest their money. They don’t know what a Roth IRA account is, or a 401k, or the magic of compound interest, the tax benefits associated with investing in these types of vehicles, etc. There’s a lot of specialized knowledge out there that young adults are not aware of on when it comes to how they can invest their money and as a result, they frivolously spend it away.
Credit score is another big thing. A lot of young adults don’t bother to check up on it to make sure there are no errors with it. Your credit score is your report card in the real world and it comes into play when you’re buying a car, renting your first apartment, and even when you’re getting a job (most employers are now checking credit scores to determine how responsible the candidate is). Protect that at all costs. Learn what drives your credit score down. Learn what drives your credit score up. Check up on it every now and then to ensure nothing is wrong with it.
Even something as basic as creating a simple budget is beyond the grasp of some young adults and it simply amazes me that a lot of people don’t do this and some don’t even know how (you’d be surprised). Figure out your income after taxes, pay yourself FIRST (this is a big one – most people pay the bills and frivolously spend the leftovers until next payday), see what you can cut out if things are tight, look to see where you can bring in more income if you need to do so, etc.
Another important subset regarding personal finance are those “intangible”
We live in a materialistic society where unfortunately, many young people grow up with the “have” then “be” mentality.
If I have _______, then I’ll be ____________.
Blame it on the media, advertising, or the impressionable minds of young people, but you’ll frequently see that a lot of people get stuck in this mentality and as a result, needlessly pile themselves in a mountain of debt.
One thing that I want to point out to students is that you’ll find as you get older, that a lot of people “fake” financial success. Not all, but a pretty big chunk. The neighbor or co-worker you see with the fancy car and nice clothes are most likely knee deep in debt while you’ll find the people with the average car and clothes have little or no debt and a nice big cushion of savings to that as well.
And the ironic and sad part is that most people don’t really care about other people because they’re so busy with themselves, so all that effort to impress others is really all in vain. The inherent danger in trying to accumulate expensive things to feel good about yourself is that you’re telling yourself that you need something outside of yourself to validate you, when everything you need to validate yourself is already within you. Stop looking for anything outside of you because there will always be something new and better to purchase. It’s like a dog chasing its tail. You’ll never catch it. Learn to simplify your life and to be content and grateful for the things you have. Don’t get caught up in the materialistic chase because once you do, it’s hard to get out.
* Communicating Effectively
By this, I’m not necessarily talking about giving speeches and presentations, although that certainly falls in this category. I’m mainly talking about being able to clearly take what’s in your head and put it into words so the other person clearly understands what you’re saying the first time.
I know that sounds simple, but I’m sure you’ve met people in the workplace who don’t take the time to prepare when they speak with you and as a result, waste your time talking in circles when all you want to say to them is: “Can you take some time to think through what you want to say and come back to me later with that?”
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