The Rachel Cruze Show - 5 Money Lessons They Don’t Teach in High School

Starting point is 00:00:05 So can we talk about the fact in high school you learn the square root of pie, but we don't learn how to budget our money? Yeah, because it's amazing that it's like this knowledge that we really don't use in the real world we're taught, which I understand. It's a good thing. But also the things we need to know, we weren't always taught as kids and as teenagers. And so today I want to offer a little bit of a crash course on five financial lessons that everyone should learn in school. So before we get started, make sure to subscribe and share this episode, maybe with your high school. BFF, you know, why not? All right, the first lesson we all should have learned before graduating from high school is how to budgets. I mentioned that earlier, but it is so true. A zero-based

Starting point is 00:00:44 budget is your income for the month minus all of your expenses equals zero. And that includes some giving and saving there as well. But actually like going through and just saying, hey, here's how to do a zero-based budget is so crucial. But granted, we're like not taught it. And if your parents didn't bring you into any conversations, you have no idea how much lights and water are. So getting a realistic expectation of life is so important. And Ramsey's most recent survey, the state of personal finance, the research that we did, we found that saving money was the top New Year's resolution for Americans. So if that's the case for you, a budget is going to help you do that.

Starting point is 00:01:20 So in my house, we use every dollar, which is an incredible budgeting app and helps you so much when it comes to this concept of budgeting. So if you find like, okay, I would need to learn how to just budget because I didn't learn that in high school, or I need to save some money or I have other goals. Again, a budget is your best friend. So click the link below to check out every dollar. Number two, what we all should have learned is to stay away from all debt, including student loans, credit cards, car payments, he locks. I mean, all the different kinds of debt that are out there that really trap you in a vicious cycle.

Starting point is 00:01:53 And what's so difficult is when you're a senior in high school, for some people, their next step is college, which is very, very expensive. And no one really talks about, hey, you're going to have to pay that back as a 22-year-old. year old starting off at an entry-level job. Like this idea and this conversation of money doesn't get brought up always. So understanding the value of choosing, again with college, a school you can afford, staying and stay, going to a community college, going to a trade school, maybe doing a gap year, like all these other options, right, because student loan debt is the first type of debt that most teenagers get into.

Starting point is 00:02:27 And then from there, learning how to live without a credit card, how to save up and pay for a car, how much your car payment is actually costing you and run some numbers. If you invested your car payment from age 22, you know, to age 65, you'd have millions of dollars. But yet we spend our whole lives just paying a car payment every month. So again, it's this idea and this mindset, but also the math behind it's that if we were taught about this early in life and you could avoid it, so many more people would be building wealth faster. Now, a great thing about financial education is that it's never too early or too late. So whatever stage of life you are in or maybe a loved one that you have, there are some incredible resources out there to help. So I'm going to leave a link to Financial Peace University.

Starting point is 00:03:06 This is our nine lesson course that walks you through what you should have learned in high school. But as adults today, like, what do we do? I'll put a link below to that if you want to check that out. And also I'll put a link to our Ramsey Ed homeschool curriculum that serves students all across America. And we have graduated tens of millions of students because our curriculum is in high schools across America, which we're so excited about to teach the next generation. But if your school, your local high school isn't teaching it, but you want to teach your kids, Make sure to check out our homeschool curriculum.

Starting point is 00:03:33 I will put a link down below. All right, the third lesson that should be taught in high school is generosity. If we made giving a priority, I am convinced our world would be in a better place. Like, you can take control of your money. And again, we want to do that. We want to be wise with our money. But the ultimate goal of that is to change your family tree and be extremely generous. And if you built in an entire generation that one of the parts of their money that they

Starting point is 00:04:02 automatically because it's a habit and who they are is generosity and giving to others, that would change so many things. And so just the beauty and the heart aspect of giving is something that is so crucial. And again, I think that needs to be talked about in high school. Okay. Let's talk about, though, a really important factor that should be talked about as well. And that is health insurance. It is a costly part of our budget. But I do want to tell you about one of our amazing sponsors, Christian health care ministries. It is not health insurance, but it is a cost-sharing ministry. So listen, though, if you lose your employer-sponsor health insurance

Starting point is 00:04:35 and you have to go look for health insurance, Cobra is usually the option out there. But I want you to consider Christian healthcare ministries instead because CHM is an affordable, biblically-based alternative to health insurance that could be a third of the price of Cobra. Yes, CHM programs start as low as $98 a month, and CHM has helped hundreds of thousands of families

Starting point is 00:04:59 take care of over $11 billion in medical bills since 1981. CHM members are also supported spiritually with prayer when they have a medical event. So try getting that kind of support with Cobra. You're not. But listen, whether you are going through a job loss, a life change, or you just want to consider other options when it comes to saving money on health care costs, make sure to check out CHM. So learn more at CHMinestries.org slash budget.

Starting point is 00:05:28 That's CHministries.org slash budget. All right. The fourth thing we all should have learned in high school is how to file your taxes. Yes. So whether you file your taxes yourself or maybe you have a pro help you, it can be a very confusing process. So whether you're like a W2 or a 1099, like when and how to pay and all the things, again, very, very confusing.

Starting point is 00:05:49 And so making sure that you're like, okay, yes, I know exactly what this means. And again, even the words and the vocabulary through filing your taxes, like if we all just had a basic understanding, it would be so helpful. So again, taxes are confusing, and I wish we learned more about it in high school. All right, the fifth thing that I wish we all learned is explaining investing in really simple terms. Because once you understand the basics of investing, then that really does help you prepare for what you need in the future. So when it comes to retirement savings and all of it, like making sure again that you have the ability to understand what investing is in the power of compound interest, which is so important. So when it comes

Starting point is 00:06:28 investing though, just know you want all of your debt paid off and you want a fully funded emergency fund, then invest 15% of your income into retirement. So this could be your Roth IRA and 401K. If your company does a retirement match, make sure to do the match first and then move over to your Roth IRA and fill it up. And again, FPU, Financial Beach University talks all through this. So it is a great place to check out. So those are all the lessons that I really feel like we should have learned in high school that we didn't. Pretty basic, but very important. So remember you guys to take control of your money and create a life you love.

The Rachel Cruze Show - 5 Money Lessons They Don’t Teach in High School

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