The short answer is: Yes!
But, I think you already knew that.
But, why do they need to learn it and why in high school?
Here’s part 4 (of 5) of the long answer:
(Need to catch up? Here’s Part 1)
4. Poverty is Detrimental
Jason (name has been changed) is in a chronic cycle of not having a job, being in poverty, getting stressed about money, getting a new job, still being in poverty, rising stress, losing his current job, then starting the cycle again.
He has been stuck in a fight or flight state for years, bouncing back and forth between fight and flight.
Being chronically stressed leads Jason to angry outbursts and impulsive decisions, which do not help his financial situation.
Jason is stuck in the lowest level of Maslow’s Hierarchy of Needs (which I discussed in Part 2 of this series).
He is in survival mode and cannot easily thrive in any area of life until he can rise out of his current situation. This includes thriving in a job, because the level up from physical survival on Maslow’s Hierarchy of Needs includes employment.
Poverty is detrimental to all areas of life.
Poverty leads to stress. Chronic stress is detrimental to our physical and emotional health.
According to a 2021 research article, chronic stress can lead to heart conditions, obesity, and mental illness. In addition, this study shows that an increased susceptibility to illness can result from high levels of stress.
It is widely known that when our bodies go into the fight or flight response, our prefrontal cortex, which is responsible for logical thinking and decision making, shuts down.
We are not wired to make great decisions when we are stressed. Making poor decisions can, in turn, lead to more stress, which affects us emotionally, physically, spiritually, socially, and intellectually.
Going back to Maslow’s Hierarchy of Needs, financial security is one need we have that is on the second level up on the pyramid. If we don’t feel secure financially, we will struggle in our relationships and struggle to fulfill our life missions, which are included in the top three levels of the pyramid.
It takes time to learn how to manage money well, learn how to earn money, and build up a savings to feel financially secure.
Teaching our children while they are young how to manage their money wisely will help them become financially self-reliant. When they are financially self-reliant, they will feel financially secure and be able to rise up on Maslow’s Hierarchy of Needs and thrive in life.
Don’t know where to start to help your teen learn to manage money wisely? First they need to earn money. Sign up for The Teen Job Guide: 70+ Interest-Driven Jobs for Teens below.