Essay 7 – Young people lack an understanding of how to manage their finances

GT Writing Task 2 (Essay Writing) Sample # 7

You should spend about 40 minutes on this task.

Write about the following topic:

Nowadays young people lack an understanding of how to manage their finances after they finish high school. Explain why they do not know how to manage money and how this can be changed.

Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Write at least 250 words.


Model Answer 1:
Every year many young adults leave schools without adequate knowledge of personal finances as they do not know how to financially navigate the real world. This financial illiteracy is primarily due to inadequate education as well as the lack of first-hand knowledge. However, satisfactory education related to managing finances and proper parenting can solve it.

The reasons why many young adults are incompetent to manage their own money are the lack of both theoretical and practical knowledge. Personal finance is not yet a part of the school curriculum. In consequence, they are deprived of acquiring theoretical knowledge. Likewise, many parents do not share financial responsibilities with their children. As a result, youngsters do not get hands-on experience. Take my cousin for an example; my uncle has never given any financial accountability to him and in consequence, my cousin does not know how to manage his budget and plan for savings even though he is 19.

However, financial education comprises lessons that enable an individual to make informed and effective decisions with all of his financial resources. If the schools incorporate financial education into their curriculum, then pupils can learn how to budget, how to use a credit card, how to save, how to avoid debt and so forth. Similarly, parents can teach their children a good lesson by providing real-life experiences. That is to say that parents can share some financial responsibilities with their children. For example, my parents give me some pocket money and also give me the freedom to make my budget on my own. Consequently, I learned two great lessons – we should spend what we can afford and how to avoid the pitfall of unplanned expenditure.

To conclude, in the present dire situation, financial education is more essential than ever before. Schools should integrate financial education into the curriculum while parents ought to share some financial liabilities with adolescents so that they can gain both practical and theoretical knowledge of money management.


Model Answer 2:
In today’s society, a concerning trend has emerged where many young people lack the necessary knowledge and skills to effectively manage their finances upon completing high school. This essay aims to delve into the reasons behind this issue and explore potential solutions to address the lack of financial literacy among young individuals.

There are several reasons why young people often lack an understanding of how to manage their finances. Firstly, financial education is not adequately integrated into the school curriculum. Traditional academic subjects take precedence, leaving limited room for practical lessons on personal finance. As a result, young individuals may graduate from high school with a wealth of knowledge in various subjects but remain ill-equipped to navigate the complexities of financial decision-making.

Secondly, the influence of consumerism and materialistic culture plays a significant role. Young people are bombarded with advertisements and societal pressures to indulge in instant gratification and pursue a lifestyle beyond their means. This emphasis on immediate pleasure rather than long-term financial planning can lead to poor money management habits and a lack of understanding about saving, budgeting, and investing.

To address the lack of financial knowledge among young people, several measures can be taken. Firstly, schools should prioritize financial literacy education by integrating it into the curriculum. By incorporating practical lessons on budgeting, saving, debt management, and investment basics, students can develop essential skills to make informed financial decisions.

Furthermore, a collaboration between educational institutions and financial institutions can be established to provide workshops, seminars, and mentorship programmes focused on financial literacy. These initiatives can equip young individuals with the necessary knowledge and guidance to manage their finances effectively. Additionally, parental involvement is crucial in promoting financial literacy. Parents can take an active role in teaching their children about money management from an early age, instilling good financial habits and fostering open discussions about personal finance.

In conclusion, the lack of financial knowledge among young people can be attributed to the insufficient integration of financial education into the school curriculum and the influence of consumerism. By equipping young individuals with the necessary knowledge and skills to manage their finances, we can empower them to make informed decisions and establish a solid foundation for their financial future.


Model Answer 3:
Money management is a skill that determines the degree of success of fresh graduates in many cases. This is why educationalists and parents are so concerned about the modern youths’ precipitation with their skills in managing their finances. This essay examines why so many adolescents, after high school, lack the skill as well as how to reverse the scenario.

When we talk about modern youths who are so fond of freedom and luxury, we can visualise the caring yet oblivious parents. They work really hard to ensure a safe life for their children but hide the reality away. These parents should let their children know how they earn money and why it is important to effectively manage one’s finance from the early stages of life. Due to this inclination, young people remain unaware of a very fundamental skill – money management. It is scientifically proven that someone’s basic character is shaped at an early stage of life and the way someone is educated at home greatly influences the future. So to have a better young generation who knows how to effectively manage money, parents should teach the fundamentals of finance management at home and reveal how hard they work to make money.

Moreover, schools lack a proper syllabus on money management for all majors and teachers do not take the initiatives to educate their students. The result is a fumbling young generation with no prior knowledge of how to take care of their money. To solve this problem, educationalists should be trained first and then requested to instil this skill among their students. Managing finance should be a part of our national curriculum for all majors.

To conclude, parents’ unwillingness to teach practical aspects of earning and money management and the lack of financial school education put so many young in jeopardy when the time comes for them to manage their money. Family and formal education are both required to solve this problem.

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